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The Intended Use Not Clear for real estate appraiser

Would you like Claudia to manage your liability concerns?

Intended Use Not Clear

Q: " 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 the report, he just said they wanted a “Market Value.” I asked if they were looking to sell the property and he said they were not. They simply want to know what it is worth and he said that he would send me an Engagement Agreement.

I now have the Engagement Agreement and it sheds no more light on the Intended Use. Plus, it contains this language:

"...your acceptance of the appraisal assignment will confirm that the client owns the appraisal report to be provided and that we will be under no restrictions regarding its redistribution to other parties of our choice at any other time and for any purpose..."

I am thinking I don’t want to take on this assignment. I am uncomfortable with both the Intended Use and the Intended User issues. Do you agree?"

A: Absolutely. I agree completely. You have no idea what these people want the appraisal for or what they intend to do with it and if they cannot (or will not) explain that to you, it is a problem. Giving them permission to provide the report to anyone, at any time, without your knowledge, or consent, increases your liability exposure and risk. Good for you that you spotted these issues.

Would you like Claudia to manage your liability concerns?