Does the Homeowner Get a Copy of the Appraisal?

This subject always got my goat...Whats the big secret anyway and the insult is it is paid for too...Share the value and lets move on

Isn't the person paying for the whatever it is, appraisal in this case, entitled to a copy? Most re-fi's have the owner paying for the appraisal. So I'd think they'd get a copy, since the appraisal is paid by them.

The buyer often won't get a copy without asking - that's why buyers should ask, and follow up with the help of their agent if not provided in a reasonable period of time.

I think under RESPA, if I'm not mistaken, the one who pays for the appraisal is entitled to a copy.

Thanks, Rick ... it is nice to know that a judge understands the law!   The USPAP is NOT a law... so many appraisers have tried to hide behind it.

What gets me is that in the past I've had lenders tell me that they will NOT send a copy of the appraisal.  Their excuse was "The bank ordered it and the client is simply paying a fee" which is a lie.  There have been times when I had to go out of my way to get the appraisal for my client.

I make sure I receive a copy of the appraisal for my records. Buyers tend to lose them. This is a very important document.

I have always given a copy of the appraisal along with other papers (in a nice legal size folder) to the client at the closing. Purchase or Refinance. This is a nice way to have a folder/binder where my client can keep all their documents for future reference.   

I always tell my clients to specifically ask for a copy of an appraisal and to keep bugging their lender until they do. Afterall, they paid for that appraisal... they own that "intellectual" property.

Rick, great blog post and got some of the AR members stirring their pot's.....lol

I've never had a client not get their appraisal but I'm sure it has happened to others and reading your story about the Appraiser who refused, well he's probably no longer in business?

I can see why this blog was featured and thanks for sharing your take on it, good job...

FAQ 254 of USPAP directly addresses this issue:

254. OWNERSHIP OF APPRAISAL REPORTS

Question: A property owner has requested a copy of an appraisal report I prepared for a lender. Who owns an appraisal report, its associated research and supporting documentation?

Response:

USPAP does not specifically address who owns an appraisal report, the research necessary to produce that report and the report’s supporting documentation. 

Appraisal reports of all kinds are, by definition … transmitted to the client… As indicated in Standards Rules 2-2, 8-2, and 10-2, and further described in Advisory Opinion 12, Use of the Appraisal Report Opinions of Standards Rules 2-2 and 8-2, the decision as to which reporting option is appropriate for any given assignment is reached by both the appraiser and the client.

However, once that decision has been competently made, USPAP does not place further responsibility upon the appraiser for the client’s use of that report. 

An appraiser who receives a request from any party for a copy of an appraisal report must comply with the Confidentiality section of the ETHICS RULE which, states:

An appraiser must protect the confidential nature of the appraiser-client relationship.  

An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results.

 The Confidentiality section of the ETHICS RULE further states:

 An appraiser must not disclose: (1) confidential information or (2) Assignment result to anyone other than:

the client; 

persons specifically authorized by the client; 

state appraiser regulatory agencies; 

third parties as may be authorized by due process of law; and 

a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation

Many keep saying they paid for the appraisal so therefore are entitled to a copy. Many years ago when I was battling for a copy the lender wrote to me and said your client didn't pay for it, we did, we ordered it and paid the appraiser directly, they just reimbursed us for the expense as part of the loan processing fee we charge the borrower So a legal technicality.

When they made a visit to my office asking why they weren't getting any loans from us any more, I just pulled the letter and told them when the head of the company comes to the office and performs a certain act, maybe I would reconsider. So we just started adding clauses to everything, the purchase contract, the loan application, etc and started a new war.

Other brokers in the area joined in our efforts and a list of appraisers and company's that would not provide copies to those who paid directly or indirectly was added to our list. Being boycotted resulted in new cooperation. One result was finding a lot of appraisers doing a sloppy job, and proving the old saying that MAI really stood for made as instructed.

Appraisal is a very important document. Client should always ask for a copy of it. Great interactions of comments from other AR members.

Hi, Rick.   

      Beginning January 18, 2014, The Dodd-Frank Act will require Lenders to provide a Copy of the Appraisal to Borrowers who are applying for first-lien credit on a dwelling.

     The Lender will have to notify you within 3 business days of your right to the Appraisal.  The Lender must provide copies of the Appraisal and any other written valuation within 3 days of their completion.  The copies must be provided "free of charge" to the Borrower.

      Please see a qualified Mortgage Lender for complete details, including your right to waive the 3-day timing requirement.

According to USPAP definitions:

"Client: the party or parties who engage, by employment or contract, an appraiser in a specific assignment.

            Comment: The client may be an individual, group, or entity, and may engage and communicate with

                             the appraiser directly or through an agent."

So I guess according to the definition both the bank and the borrower could be considered the clients, as the borrower is paying for it, therefore creating an employer/employee relationship and the bank is ordering it directly with the appraiser. I guess the judge in the virginia case felt the same way.

   Dan (#10) is absolutely right - USPAP is not law.  But appraisers are bound by USPAP and if they want to 'stay in good standing' as an appraiser they will follow USPAP as closely as possible.  NOT "hide behind it"...

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In my hood, the client who pays for the appraiser, gets the copy of the report and it is up to them if they want to share it.