Canceled Assignment, Unexpected Demand
Q. I was hired by a local lender to complete a refinance appraisal on a rural property. The lender contacts me directly a few times a year without using an AMC.
The property included an older but well-maintained home on more than three acres, along with a barn and two additional outbuildings. The owner was very pleasant and appeared to be in good health, so I was surprised when the lender notified me about a week after my inspection that she had passed away and the assignment was canceled. I was paid a partial inspection fee, although it did not fully cover my time.
Since I had already gathered photos, measurements, sketches, and field notes, I compiled a workfile as required, even though the report was never completed.
Recently, I received a call from someone claiming to be the owner’s son. He said the family planned to sell the property and requested a copy of my appraisal report. I explained that no report had been completed. He then demanded my entire file, including photos, stating that the information was personal and belonged to his family. I declined and explained that he was not my client.
He became upset and threatened legal action, claiming the materials were private and that I would be hearing from his attorney. Should I be concerned?
A: At this point, no. You handled the situation appropriately. The property owner’s family does not have a right to your workfile because they are not your client.
That said, it is a good idea to notify the lender about the call and the threat. While this situation is likely the result of frustration or grief, any formal demand, such as a letter from an attorney or a licensing board complaint, should be reported to your insurance carrier immediately.
As always, when in doubt, proceed cautiously and document all communications.