26 | spring 2016 cmba-achc.ca CMB MAGAZINE
As A MortgAge broker or a lender, you've
probably had many requests from homeowners
for copies of appraisal reports you ordered on
their homes. Aer all, the homeowner paid
for the appraisal, right? Well, yes and no.
Yes, they did pay for it. However, no, that
does not mean they are necessarily entitled to
receive a copy. Canadian appraisers follow the
Canadian Uniform Standards of Professional
Appraisal Practice (CUSPAP), which states
that only the appraiser's "client" is entitled to a
copy of the appraisal report. CUSPAP defines
the "client" as the person or party that engages
(orders) the appraiser for the appraisal assign-
ment. is may or may not be the person
who paid for the appraisal.
If a mortgage broker orders an appraisal,
the broker is the client of the appraiser and
the homeowner is the client of the broker.
ere is no client relationship between the
homeowner and appraiser, regardless of who
pays for the appraisal. is concept can oen
upset a homeowner, so understanding the
"appraiser/client" relationship will help you
manage the expectations of your client in
advance... before they say, "Well, I paid for
it so I want a copy."
In order to release a copy of the appraisal
report to anyone, including a lender, the broker
requires the appraiser's authorization. is usu-
ally comes in the form of a Letter of Transmittal
(LOT) to permit a particular party (lender)
to rely on the report.
So why would an appraiser not want the
homeowner to have a copy?
An appraisal report is a private and confi-
dential document between appraiser and client
and is not intended to be circulated outside this
relationship without written permission from
the appraiser (LOT).
Unlimited liability
e Appraisal Institute of Canada (AIC) requires
its members to limit their liability wherever pos-
sible. Appraisals are prepared for a specific use
and the appraiser's liability increases 100 per cent
Appraising
the
Stakes
Why you
should think
twice before
giving your client
a copy of their
appraisal
bY Leigh WaLker
