Claudia Says...

Q&A Series with Claudia Gaglione

Claudia received her Juris Doctorate from the University of Southern California Law Center in 1982 and specializes in the defense of professional malpractice claims. Since 1987, Claudia has personally supervised over 8,000 claims and lawsuits filed against real estate appraisers across the country. By virtue of this experience, she is uniquely qualified to speak about what kinds of things appraisers get sued for and what defenses are most successful. More importantly, Claudia can discuss the types of errors that are avoidable and how appraisers can make themselves the best possible defendants in the event they are ever sued.

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image representing Judicial Appraiser Panels concept for real estate appraiser

Can an Attorney Really Force Me to Testify?

A few years ago, I did an appraisal for a purchase loan. The assignment came through an AMC, and the lender was one we frequently work with. The other day, I got an email from an attorney [...]

Judicial Appraiser Panels: Balancing Opportunity and Liability

An attorney I've collaborated with before now serves as a referee for the local court. She reached out to me, asking if I'd like to be considered for a panel of appraisers that judges can select [...]

image of home and a divorce between a husband and wife. This relates to real estate appraisal and court issues

Navigating Red Flags: a Contentious Divorce Case

I received a call from an attorney I’ve worked with in the past. He asked if I could serve as an expert in a divorce case he’s handling. Initially, I was ready to send him my standard engagement letter [...]

image of attic that has some leaking from the roof during a real estate appraisal

State Board Complaint Frustrations

A first-time homebuyer recently filed a complaint against me with the state licensing board, alleging that I failed to conduct a "thorough" inspection of her attic. According to [...]

concept image of a conflict of interest and professional integrity in divorce home appraisal

Conflicting Assignments and Professional Ethics

Last year, I conducted an appraisal for the wife in a divorce case. Rumors reached me that she wasn't satisfied with my valuation. Although she [...]

AMC requesting other AMC Client lists from an appraiser to review

AMC Panel Requirements

I’m trying to join a panel with a new AMC client. They’ve asked me to provide a list of other AMCs I work with [...]

real estate appraisal document that is going to state review

Transparency Concerns in State Licensing Board Investigations

I recently received a letter from my state licensing board stating that they have received a complaint about one of my appraisals. However, they did not [...]

Unhappy couple scrutinizing a real estate appraisal document

Dealing with Unhappy Buyers as an Appraiser

Being an appraiser can be challenging. I understand that not everyone will be happy with my reports, but I was surprised when a buyer called my office screaming [...]

Real estate appraiser filling out a residential report

Protecting My Appraisal Report

I was shocked to receive a request from a law firm representing my original lender/client. Earlier this year, I appraised a bank building for [...]

Photo: Deck Repair for Single-Family Residence with Padlocked Area - Lender/Client Protection for a real estate appraisal - Visual evidence of the back deck in need of repair and inaccessible area under the deck with padlocked door. This is real estate appraiser related.

Client Insists on Cost to Cure

I’ve been discussing an issue with my lender/client. Instead of making my report 'subject to', they're insisting that I provide a 'cost to cure' for a [...]

Have an Attorney Handle a State Board Complaint?

Someone told me that if I receive a complaint from the licensing board in this state, it’s best to [...]

Confirming Construction Progress

The loan officer requested that I perform progress inspections on new construction after I completed a "subject to completion" appraisal for [...]

Unreasonable Subpoena Request

I know that I need to respond to a subpoena, but I just got served with this request and I am at a complete loss here.[...]

Problem with An Affidavit

An attorney just sent me an affidavit with an appraisal of mine that I prepared for a refinance. The cover letter says [...]

Buyer Wants Lower Price to Negotiate

I completed a condo appraisal for a private client. She is buying the unit for cash and I did not even have a copy of the contract. My report came in [...]

Intended Use Not Clear

A local attorney that I have worked for in the past called and asked if I could appraise a small commercial property for a client. When I asked why they need [...]

Too Late for a Reconsideration of Value

I prepared a VA refinance appraisal in May of 2020. More than a year and a half later I received a request for reconsideration from [...]

Borrower Wants Answers Appraiser Can’t Give

I completed an appraisal a few weeks ago for a purchase loan. The borrower/purchaser has called my office now 3 times [...]

Can’t Certify the Work

Due to COVID and Supply Chain issues there have been many delays getting building materials to sites. When completing construction progress reports, I am repeatedly being asked to [...]

Deposition Fears

I recently had my deposition taken and it was horrible experience. Even though I had my attorney sitting nearby, the process was nerve-wracking [...]

A Family Feud and Intended Use

I was recently hired by a local attorney to appraise a small industrial building. The intended use was supposed to be for estate tax purposes. The attorney said this building is the only real property owned by the descendent and that there are two beneficiaries [...]

Weather Impact and concerning of flooding - Appraiser questions and help

A New Assignment, not a Simple Revision

I completed an appraisal coming up on 6 months ago. A local bank was the client and the stated intended use was for purchase money financing. The loan rep recently contacted me and asked me to send a ‘revised’ report naming the [...]

Weather Impact

I appraised the subject property a few weeks ago in connection with a purchase loan. Over this past weekend, there was some major rainfall and flooding in [...]

Completion Certificate Assignment

A client called and asked me do him a big favor by certifying a repair. The original appraiser had called for a window repair in his report and the client said that the repair work was done, but the original appraiser has COVID and couldn’t check. [...]

Record Keeping…Forever?

This is just a general question about record keeping. I know I have to keep my files for 5 years to be USPAP compliant but a buddy of mine just got sued for [...]

Sellers Stand Firm on Appraised Price - Appraiser help

Sellers Stand Firm on Desired Price

I think I handled this correctly but I wanted to get your thoughts. I was hired by a good AMC client to appraise a house in [...]

Limit of Liability Language

I have been working with a local lender for several years now and we have had a very good relationship. Each year they send out a new form, [...]

real estate appraiser lender owner value pressure

Should I Complete this Assignment?

I have a problem with an assignment and I am not sure what to do. A good lender/client contacted my office last week about [...]

Safety issues not fixed

I recently completed a purchase appraisal and the report was subject to repairs, which included material safety issues. [...]

Appraiser being hired as an expert, insurance questions

Pass being hired as an expert

I got a call and met with an attorney for an expert assignment. But I am thinking I have to pass on this. [...]

Can a fact witness be used as an expert witness?

The answer is that you can be both. Here are 2 examples to illustrate [...]

USPAP Violations

A few months ago I got a complaint from the state licensing board. The complaint was made by a seller who claimed the appraisal I prepared for the prospective buyer’s lender had understated value. The seller was [...]

Hybrid Appraisal Language

Our office has been approached by a client about preparing “Hybrid” appraisals, so I asked to review a sample form from them. It looks pretty typical of others I have seen; I have to provide [...]

Disclosing Identity of Complaining Party

I was recently notified that a complaint had been made against me to my State Appraisal Licensing Board. This is the first time something like this has happened to me and I am frustrated and [...]

Appraiser received a subpoena to testify

Can’t Ignore a Subpoena

I completed an appraisal and report for a refinance loan 2 years ago. I was not contacted about it by any party after I uploaded it to the client. But now I [...]

The Blame Game

While filling out my insurance renewal application, I came across a question that asks if in the past 10 years [...]

Roof Concerns

I prepared a residential appraisal about 2 weeks ago. This was for a refinance loan. While I was inspecting the house the property owner [...]

Intended Use and Liability

I have an E&O question for you. I think I know the answer, but want to hear what you think. I received a request from a potential [...]

Expert Witness

I have been doing expert witness work in this town for years. Lately a couple of other appraisers have been “marketing” themselves as experts after they took some class called “How to be an Expert”. So now [...]

"Off the cuff" opinions

I have done work for a local attorney many times over the past few years. This attorney seems to be a general practitioner I suppose you could say. [...]

The Pitfalls of Small Chit-Chat

I inspected a property as part of a refinance assignment. I gave the borrower my business card, as I always do at an inspection. The borrower was not watching me like a hawk, but he was kind of hovering around [...]

Shopping for value

I got a call today from a woman who had been referred to me by a mutual friend. She wanted to hire me to prepare an appraisal of her home. Of course, I asked why she needed [...]

Effective disclaimer language

I was at a CE class the other day and one of the appraisers there was talking about a lawsuit he was in. This guy did the appraisal 8 years ago, when the people who are suing him bought the house. [...]

Am I on shaky ground?

In a recent report I required a structural inspection. The home is over 100 years old. It has a raised foundation, wood subflooring, wood floor joisting [...]

A polite decline can prevent a future headache.

I was recently asked to prepare an appraisal of a commercial property here in town. The lawyer who called me has hired me to do expert work in the past and I have never had a problem with him. But, the more [...]

Duty to cooperate

I was sued last year and my insurance company is defending me. The lawsuit involves 1 appraisal I did in 2007. The borrowers who are suing me say that I conspired with the bank to inflate values and they asked me to give them copies of every appraisal I ever did for this bank. [...]