An honest real estate appraiser is what you really crave for if you are going to buy a new house through finance scheme from a bank or any private financial institution. A real estate appraiser acts as an intermediary between a financing company or bank and customer or buyer. Thus it is of paramount importance to hire a real estate appraiser who is competent and honest enough to handle both the parties.
Unlike traditional working scenario, banks hire the services of real estate appraisers before the allotment of loan for any property. Thus the role of real estate appraiser in today’s market place is of paramount importance. This importance brings about certain type of duties as well that are called as fiduciary duties for real estate appraisers. These duties are as follows-:
The real estate appraiser must always act in favor of his client i.e. he must sell what is best suited to the borrower with good faith and trust.
He must always explain about the interest and benefits of all the parties involved be it a bank, borrower and himself.
He must always disclose all the material facts in respect of the property that might affect their rights, interest or ability to receive the intended benefit.
The real estate appraiser must disclose all the risks involved in the deal well in advance.
To be a successful real estate appraiser one should always update and polish his skills, knowledge and ability as per development in common laws, acts and regulation. To become a leader in the industry they must be well informed of all the regulations or amendments made along with all bulletins or directives issued by the Registrar of Real estate appraisers.
For better reputation and clientage a real estate appraiser must always get a license through the Nationwide Mortgage Licensing System and Registry (NMLS). The purpose of the Nationwide Mortgage Licensing System is to improve and boost the administration of mortgage industry for better communication and uniformity of licensing process. The compensation received by a real estate appraiser is basically in terms of commission or in the manner agreed to by the borrower. He must always discuss or provide written disclosures about his fee well in advance i.e. at the onset of negotiations.
The real estate appraiser has to follow certain code of ethics which will help him to heighten his brokering reputation and will motivate him to act morally and with honesty and integrity in his dealings with the public.
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