LEGAL NOTICE TO CLIENTS AND BORROWERS

By law, a real estate appraisal must be an unbiased, impartial, neutral, independent, objective and professional opinion of market value.  It is a violation of federal law for an appraiser to accept an appraisal assignment where employment to perform the appraisal or the compensation for the work is made contingent upon reaching a predetermined value or any other contingency.  The standard appraiser's certification in every appraisal includes the appraiser's certification and agreement that each report is performed in accordance with USPAP, that the comparables included in the report are locationally, physically and functionally the most similar to the subject property and that significant information was not knowingly withheld.  The appraiser must also certify and agree that the appraiser has no interest in the property being appraised and no interest or bias regarding the participants to the transaction. Appraisers must also certify that employment and/or compensation for performing present or future appraisals was not conditioned on any agreement or understanding, written or otherwise, that the appraisal would report or support a predetermined, specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party or the attainment of a specific result or occurrence of a specific subsequent event such as approval of a pending mortgage loan application.  The appraiser must also acknowledge that any intentional or negligent misrepresentation may result in civil and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq, or similar state laws.

Please also be advised that it is a criminal violation of state law for a LENDER to pay or offer to pay appraisers where payment for an appraisal is made contingent on a minimum, maximum or pre-agreed estimate of value and where such contingent payment interferes with the appraiser's ability or obligation to provide an independent and impartial opinion of value.  This violation by lenders is punishable by a fine not to exceed $4,000 and a term of imprisonment not to exceed one year for each violation.  Federal legislation is also pending that would make it a federal offense for anyone to pressure a real estate appraiser.  Please also note that if two or more people are involved in pressuring an appraiser, this conspiracy to commit a misdemeanor may be considered to be a felony involving larger fines and longer terms of imprisonment.

When any client requests our services, a staff research technician will perform some preliminary research and will advise the client regarding such research results.  The technician will also seek to inspect the property to confirm such preliminary research regarding actual size and condition of the property.  The technician will also advise the client following each inspection so that the client can make a decision whether or not to request an appraisal. Information about the subject property and raw MLS information will be provided so that the client can evaluate it.  No analysis of this preliminary information will be provided.  An opinion of value will not be rendered either in writing or verbally until the client requests an appraisal in writing.  If the client decides not to order an appraisal after a property inspection has been made, the client will be billed for the research & inspection in an amount not to exceed half the applicable appraisal fee.  It should be understood that research and property inspection functions are separate and distinct from the appraisal process.

If, after the research and inspection process is complete, the client makes a written request for an appraisal, our appraisal department will get involved.  The requested appraisal will be completed and delivered to the client as soon as possible.  Only after the report has been completed and delivered will the appraiser discuss value or the valuation process.  It should be understood that no one associated with this firm is authorized to discuss value on any appraisal except for the appraiser(s) signing the report.  It should also be understood that all appraisal fees are non-refundable and that the lender is the appraiser's client no matter who paid for the appraisal report.

It is the policy of this organization and all members of it to obey the law related to performing appraisals and to help clients avoid breaking laws applicable to non-appraisers who may attempt to influence the appraisal process.