Appraisal Assignments: Keeping an eye out for liabilities

When it comes to professional appraisal, liabilities always stick around and one has to dodge them carefully. You need to be aware of the risks involved in this field. Some assignments are easy while other involve a certain degree of liability which needs to be taken care off. Here are five types of appraisal assignments with higher-than-average liability risk.

1. Appraisals and unethical clients

Things can get nasty out there in the playing field. As an appraiser you need to listen to your gut while dealing with clients, day in day out. Remember that not all clients are ethical; some of them might have bad intention so step out whenever you feel that things are fishy.
.

2. No “rush” policy

Everything is to take its due course. A time may come where the client wants you to rush the deal. They might offer you double the commission you normally get. If such events occur you need to make sure you are dealing with the right people and detach yourself if you don’t feel right about it. Again it all boils down to the clients intentions. They might be fishing for a new appraiser in the area who has less information about the people and price ranges. It is best to take jobs that are smooth and make sure to have a no rush policy. As they say, “Haste makes waste”.

3. Residential mortgage lending appraisals

Before accepting an appraisal job you need to look into it and as about the possible intended purpose of the appraisal. Some of these might carry more liability risk to it as they might be involved in some kind of fraudulent scheme. Residential mortgage lending appraisals, particularly those that involve government insurance or guarantees, expose you to liability that does not exist in other appraisal assignments. Even within the residential mortgage lending arena, assignments may carry differing degrees of liability.

4. Litigation

One often stumbles to litigation assignments in which you end up being exposed to a liability. Before taking such assignments you must be very careful. It is advised to keep away from such assignments as they end up being a tough nut to crack. Assignments like these are generated when two parties end up disagreeing on something and a consensus is sought through the course of law. When you accept such an assignment you might be occasionally called for witness testimony or some cross examination can be ordered which turns the entire scenario into an ordeal.
At times, you might end up getting sued by other parties for disagreement or malpractice, for the purpose of blackmailing or other malicious intentions.
When you encounter higher-risk appraisal assignments, know what you’re liable for and proceed with caution and professionalism. Throughout your career, you may occasionally encounter assignment conditions that are flat-out unacceptable. Make sure you know how to recognize those assignments so that you can turn them down