100% Liability for Information Relied Upon
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…courts have ruled if the information is included in the report and relied upon, the appraiser is responsible for the information…
Last week representatives from VaCAP attended The Appraisal Foundation Advisory Committee (TAFAC) and Industry Advisory Council (IAC) joint meeting. We promised a recap of the events, however, both The Appraisal Foundation and Jonathan Miller have already released a summary and did an outstanding job. To read about the event, simply follow this link.
The one thing every appraiser needs to understand about the new hybrid product is their liability; specifically the appraisers has 100% liability for the report and the information in the report.
Peter Christensen shared concerns on the use of third party data in which an appraiser must base his conclusions. In similar case law, courts have ruled if the information is included in the report and relied upon, the appraiser is responsible for the information.
Will the use of extraordinary assumptions relieve you of your liability when you have photos of the property in your report? Who wants to be the appraiser that finds out?
While we were in DC, VaCAP was invited to meet with representatives from Fannie Mae to discuss appraisal modernization. A summary of the meeting will be shared shortly.
Highest and Best Use Reminder:
Standard 1-3 requires appraisers to develop an opinion of highest and best use.
Standard 2-2 requires appraisers to summarize the support and rationale for the opinion of highest and best use.
Checking the box on the 1004 form is insufficient. Don’t get yourself in trouble over this.
Do you have past due invoices?
We are hearing of major financial trouble concerning several appraisal management companies. Virginia statute requires the amc to pay the appraiser within 30 days of the initial submission. Please share with us any issues with non-payment by amcs.
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