Appraisers work on a confidential basis with their clients (known as client-appraiser relationship), in the same fashion as other professionals such as lawyers and accountants. When a mortgage broker or lender requests an appraisal, they are the appraiser’s client, regardless of who pays the appraisal fee. Under the AIC’s Standards of Professional Appraisal Practice, any discussions on or disclosure of information contained in an appraisal report must be done with the written consent of the appraiser’s client.
When a lending institution requires an appraisal report on a property, more commonly, they will engage an Appraisal Management Company (AMC) to act as an intermediary to facilitate the appraisal process on their behalf. AMCs offer their clients a single point of contact for the management of the appraisal function and have a contractual relationship with both their lender clients and the local appraisal practitioner.
While there are a number of layers to the appraisal process, appraisers, AMCs and lending institutions are focused on making the process as seamless as possible to the consumer.