disclosure
476) Cell Tower
04/12/09
Dear H2,
I'm appraising a bank-owned home (for a new borrower) on acreage that has an existing Cell Phone Tower. Per the title company, there was a long term lease signed with the prior owner and a lease was recorded. They have lost the home but the tower remains and is even a potential source of significant income for this residential zoned home. The bank/owner and Cell company will not talk to me, citing privacy concerns. Any thoughts on whether this is non-conforming or just a residential house with extra income potential?
Thank you much!
Shane Rivers shane@thevision.net
Dear Shane,
As part of your scope of work dialogue you need to discuss with the lander/client what you should do. Most likely you will make some kind of assumption about the tower and its potential income. As long as the assumption is reasonable and not intended to deceive anyone, it is permitted by the USPAP. No matter what you do, you must disclose that the tower exists and what you did to obtain information about it.
H2
I'm appraising a bank-owned home (for a new borrower) on acreage that has an existing Cell Phone Tower. Per the title company, there was a long term lease signed with the prior owner and a lease was recorded. They have lost the home but the tower remains and is even a potential source of significant income for this residential zoned home. The bank/owner and Cell company will not talk to me, citing privacy concerns. Any thoughts on whether this is non-conforming or just a residential house with extra income potential?
Thank you much!
Shane Rivers shane@thevision.net
Dear Shane,
As part of your scope of work dialogue you need to discuss with the lander/client what you should do. Most likely you will make some kind of assumption about the tower and its potential income. As long as the assumption is reasonable and not intended to deceive anyone, it is permitted by the USPAP. No matter what you do, you must disclose that the tower exists and what you did to obtain information about it.
H2
434) Appraising for Employer
11/23/08
Dear H2,
I am office manager for an appraisal company on Maui. I also perform appraisals for this company. My dilemma is that I have started my own independent company as well.
The owner of the company I manage is a real estate broker and he thinks he can send me appraisal business linked to his real estate business under my own company name. Since I would still be working as office manager for his appraisal company, couldn't this be construed as a conflict of interests?
I haven't done this yet and am very leary of committing myself to anything that could cause me to lose my license. Please advise.
Aloha,
Donna sundara@hawaii.rr.com
Dear Donna,
All the broker can do is recommend you to the potential lender/client, which is a common practice. He cannot directly hire you.
However, I think when you receive an assignment as a result of this connection, it must be disclosed to the potential lender/client. To be safe it should also be disclosed in the appraisal
To be very safe, you should discourage the broker from recommending you while you are his employee.
Mahalo,
H2
I am office manager for an appraisal company on Maui. I also perform appraisals for this company. My dilemma is that I have started my own independent company as well.
The owner of the company I manage is a real estate broker and he thinks he can send me appraisal business linked to his real estate business under my own company name. Since I would still be working as office manager for his appraisal company, couldn't this be construed as a conflict of interests?
I haven't done this yet and am very leary of committing myself to anything that could cause me to lose my license. Please advise.
Aloha,
Donna sundara@hawaii.rr.com
Dear Donna,
All the broker can do is recommend you to the potential lender/client, which is a common practice. He cannot directly hire you.
However, I think when you receive an assignment as a result of this connection, it must be disclosed to the potential lender/client. To be safe it should also be disclosed in the appraisal
To be very safe, you should discourage the broker from recommending you while you are his employee.
Mahalo,
H2
408) Marijuana smoke
09/15/08
Dear H2,
I am doing an appraisal on a former drug house. This home was used to grow marijuana. My question is in regard to the potential impact of the odor that remains in the home. Is it considered similar to cigarette smoke? If so, are you aware of any long term effects from the odor or any stigma about the home being a former marijuana growers' house?
Thomas E. Adams II tom@appraisertom.com
Dear Thomas,
These are the problems you will need to solve: First, is it a stigmatized house? That depends on your market area. Meth houses are almost always stigmatized. I am less sure about whether marijuana smoke is a significant enough issue to cause stigmatization. As far as the smoke itself goes, there are companies that will come in and remove the odor. They are the same ones that clean up houses after a fire. The main problem I see is how do you get comparable sales to back up whatever adjustment you are going to make.
H2
I am doing an appraisal on a former drug house. This home was used to grow marijuana. My question is in regard to the potential impact of the odor that remains in the home. Is it considered similar to cigarette smoke? If so, are you aware of any long term effects from the odor or any stigma about the home being a former marijuana growers' house?
Thomas E. Adams II tom@appraisertom.com
Dear Thomas,
These are the problems you will need to solve: First, is it a stigmatized house? That depends on your market area. Meth houses are almost always stigmatized. I am less sure about whether marijuana smoke is a significant enough issue to cause stigmatization. As far as the smoke itself goes, there are companies that will come in and remove the odor. They are the same ones that clean up houses after a fire. The main problem I see is how do you get comparable sales to back up whatever adjustment you are going to make.
H2
179) Disclosure
12/10/07
Dear Henry:
I have the greatest respect for your knowledge and opinion. That is why I am seeking your input on an unusal question.
I have two companies. One is a residential appraisal firm and the other does real estate investment and development. Recently, the opportunity came up to invest in a property that my company performed an appraisal on about a year ago.
I intially turned down the investment, because I did not want any hint of financial interest in properties we have appraised. Upon reflection, because the appraisal was conducted a year prior to the investment opportunity, would it be a violation of any ethical standard??
Please understand, that for the 15 years I have been appraising, I have religiously protected our firm's reputation as the most ethical firm in the area. Am I being too conservative by not allowing my real estate investment company to buy an interest in this property now?
Thanks again for all the great advice over the years.
Paul paulgryan@cox.net
Dear Paul,
Thank you for the complements. It is always a problem when an appraiser wears two hats.
There is no specific prohibition against buying a property that you previously appraised. The best way to avoid the appearance of a conflict is to disclose to everyone involved in the transaction that you did an appraisal of the property previously, and get them to sign off that they don't care what you do. You should get the sign-off from those originally involved in the appraisal as well as those involved in the sale to you now.
Even with all of these precautions, there is always a chance of a misunderstanding which could affect your reputation. Only you can decide if that's a risk worth taking.
H2
I have the greatest respect for your knowledge and opinion. That is why I am seeking your input on an unusal question.
I have two companies. One is a residential appraisal firm and the other does real estate investment and development. Recently, the opportunity came up to invest in a property that my company performed an appraisal on about a year ago.
I intially turned down the investment, because I did not want any hint of financial interest in properties we have appraised. Upon reflection, because the appraisal was conducted a year prior to the investment opportunity, would it be a violation of any ethical standard??
Please understand, that for the 15 years I have been appraising, I have religiously protected our firm's reputation as the most ethical firm in the area. Am I being too conservative by not allowing my real estate investment company to buy an interest in this property now?
Thanks again for all the great advice over the years.
Paul paulgryan@cox.net
Dear Paul,
Thank you for the complements. It is always a problem when an appraiser wears two hats.
There is no specific prohibition against buying a property that you previously appraised. The best way to avoid the appearance of a conflict is to disclose to everyone involved in the transaction that you did an appraisal of the property previously, and get them to sign off that they don't care what you do. You should get the sign-off from those originally involved in the appraisal as well as those involved in the sale to you now.
Even with all of these precautions, there is always a chance of a misunderstanding which could affect your reputation. Only you can decide if that's a risk worth taking.
H2