Appraisers' Free Forum

Appraiser signs the report, and doing so certifies the interior/exterior thing, Appraiser states in SOW it is a hypo appraisal. It is "subject to" plans and specs.

Does the hypo condition cover an appraiser as to cert #2?

The hypothetical condition is not satisfied until the dwelling is completed per plans and specs, hense, the need for a 1004D-Certification of Completion. The 1004D's only printed cert ties the completion certification to the original report. Without the 1004D, the original appraisal's subject to condition has not been met.

Michael Tipton wrote:The hypothetical condition is not satisfied until the dwelling is completed per plans and specs, hense, the need for a 1004D-Certification of Completion. The 1004D's only printed cert ties the completion certification to the original report. Without the 1004D, the original appraisal's subject to condition has not been met.

Pretty much covers it.

Where appraisers have to watch out is when they are working on some format other than a 1004. I've seen commercial appraisers use the same kind of cert, but not make the value subject to final inspection. It's an easy mistake to make.

Will agree with Mike & Steve; maybe an additional question might be, if you include language that notes a "Certificate of Occupancy" should be required at the Closing and passing of Title. This would validate the 1004D by State Law and therefore add further protection to the appraiser.

PS: it adds to the validity of that, "Legal Permitted Use" thing everyone always jumps up N down about - plus you have now put the ownis on the Lender to be compliant with State Building Law. hmmmm

snowglobe enterprises, somewhere over the rainbow....