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Real Estate Advisors Defense Institute

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Language Library

In our CE seminars and in our resources on this site, we frequently suggest additional language that appraisers may consider using in their reports and correspondence. Using the right language can help reduce your liability exposure. In this section, we provide examples of additional language.

Please be aware of the following:
(1) there is no magic language that will insulate you from liability;
(2) no language is right for every circumstance -- the examples below should be adjusted and tailored to fit specific assignments; and
(3) when a unique condition or characteristic affects a subject property, the best thing that you can do in your report is to discuss the issue in plain English and not rely on " boilerplate."

Lastly, these are suggested examples of language only. We are not providing them as legal advice and only you -- the appraiser -- can determine the proper language to use based on the particular facts of your assignment in consultation with your own legal counsel or other professional advisors.

This clause was included in an appraiser's limiting conditions in a report to a credit union in Washington state.  The appraiser sued the credit union for indemnification when the credit union provided the report to investors who then sued the appraiser.  See READI's article about how to make limiting conditions more effective. More...
These are examples of one-sided Indemnification Clauses used by AMCs in independent contractor agreements.  They are not suggested for use.More...
Suggested report and correspondence language for when a Client May Give the Report to Third Parties. More...
These language examples are designed to make it very clear to borrowers and other non-intended users that they should not use or rely on the appraiser's report for a lender.  The are also appropriate for Advisories to Borrowers. More...
This is the wording stamped in bright red ink by a smart lender on all appraisals it provides to its borrowers. More...