Anyway this is a comment that could address some of the issues in the engagement letter referenced in this article. This comment could easily be reworded to accommodate any of the other unreasonable request made of us.

” The appraiser has received the request to research the legal permits issued over the past history of the subject’s construction. The request exceeds the appraiser’s expertise and is beyond the purview of the appraiser’s task.

The appraisal reports submitted on improved sites, cites in their limiting conditions, item #1 “The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. ” That statement makes it clear to all parties of the appraiser’s limitations. Item #6 states “The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner.” This statement makes it clear that in the event any addition or work was to be assumed to be completed would be done in a professional manner which would include the assumption that all permits necessary were given.

I am not statutorily qualified to render an opinion or title research on past permits. That task should be performed by one whose job it is to research and warrant such past legal processes such as title companies or attorneys who specialize in this type of research. Even if I were to accept the additional task for additional compensation your needs would not be met. I do not hold the credentials that would satisfy your need to prove diligence in your pursuit to identify whether or not legal permits have been issued for past construction.

I understand your concerns for risk management of loans that have had additions or major renovation/remodeling. However, I am not the person who can offer you that protection or documentation.

I am struggling with this request as I understand the Dodd-Frank Act and the Appraiser Independence Requirement was enacted to prevent unreasonable expectations of appraisers who have already provided credible support for their conclusion of value. I am in hopes these reasons will satisfy your understanding to seek this type of research elsewhere.”