Transferring or Readdressing Appraisals   Many in the lending industry have been asking to have appraisals transferred or readdress to another party.  Based on ADVISORY OPINION 26 of the UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP), the rules that govern the appraisal industry. USPAP requires an appraiser to identify the intended use and intended users in an appraisal assignment. Transferring or Readdressing an appraisal can not be done without establishing a new client relationship with the second party. Altering a report in a manner that conceals the original client or intended users in the assignment is misleading and violates the Conduct section of the ETHICS RULE. For example, an appraiser performs an appraisal and delivers the report to his client. The appraisers client then asks the appraiser to readdress this appraisal to a specific federally insured depository institution. The client knows that the appraiser is on that institutions approved appraiser list. The appraiser knows, when the original assignment is offered, that the client intends to request a loan from that institution after the original appraisal is completed. Accommodating the clients request to readdress the appraisal report in this example violates the ETHICS RULE. Indeed, even if the appraiser did not know the clients original intent, altering such a report in a manner to conceal the original client or intended users violates the ETHICS RULE.   The follow was taken from the Uniform Standards of Professional Appraisal Practice frequently asked questions. Question #1 An appraiser was engaged by Client A to appraise a property.  The appraiser delivered the appraisal report to Client A. The client has decided not to pursue the transaction that generated the need for the appraisal report. The appraiser is contacted by Client B. Client B requests that the original report be readdressed (transferred) by replacing Client A’s name with Client B’s name in the report. Is this acceptable?   No. Simply changing the client name on the report cannot change or replace the original appraiser-client relationship that was established with Client A. Therefore, this action is misleading.   Question #2 How can this circumstance be handled according to Standards?   The appraiser can consider Client B’s request as a new assignment. In so doing, the appraiser may establish a new appraiser-client relationship with Client B and appraise the property for this new client. Important considerations, i.e., confidential information and other factors are further addressed in AO-27 – "Appraising the Same Property for a New Client".   Question #3 Why might Client B want their name on the report that was completed for Client A?   Client B may want to establish an appraiser-client relationship because it provides all the rights, obligations, and liabilities such a relationship places on the appraiser. A prudent method to establish an appraiser-client relationship is to have a written engagement letter or contract with any client at the time of the assignment.