Why General-Purpose Forms Are Important
The difference between an appraiser using a General-Purpose Appraisal Form Vs. the standard form used in the Lending industry can be drastic. Court cases and money can be lost. Read on to find out why/how.
Reasons To Use a General-Purpose Appraisal Report (GPAR)
It is the expectation of any Appraisal Management Company to make sure appraisal reports are being completed on the correct form. There are many types of properties and reasons for getting appraisals. It’s the AMC’s responsibility to make sure they are covering their clients. One important report is the General-Purpose Appraisal Report. For any Homeowner filling a divorce, or disputing their taxes, the GPAR is the correct choice.
Important Differences between Standard Industry Form Vs. GPAR
The majority of appraisals in the residential real estate industry are for Lenders. These reports are required to go on different forms (1004, 1004C, 1073 and 1075). The General-Purpose Appraisal Report is not to ever be used for conventional lending purposes. These industry forms always have an intended user as the lender. The GPAR does not. There is also an intended use clause on these forms that states: “The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction”. The intended user is the Lender, however, in situations such as divorce, estate-related appraisals, or property tax appraisals there is no lender. Also, the intended use is incorrect as there is no lender and no mortgage finance transaction. This is important because a smart lawyer can get these types of forms thrown out in court.
This is why it is important for AMCs to make sure the correct form is always selected. For any civil matter, the General-Purpose form is king.
Other Differences
Another difference between the two forms is that the GPAR uses less technical verbiage as the appraisal will be used by the Homeowners, Lawyers, Judges and Tax Representatives. Usually, these professionals are not an expert in the Lending & Real Estate industries. The General-Purpose form is easier to read and understand which can only help the correct judgment is made in court or on a tax appeal. There is a section of the General-Purpose form where the appraiser can specifically state what the report is for and who it is for. The sales grid is also simplified to include unnecessary items that a judge or tax representative will not require. The GPAR cuts out the unnecessary fat that the lending industry requires. Therefore, it is shorter, less complicated, and more compact. Basically, it fits its need much better for people who need appraisals for the previously stated reasons.
If you are wishing to dispute your taxes this year or last year, please call 303-864-0944 or send us an email at info@mamamc.com. Have a wonderful day!
