Clients

In appraisal practice, the client is the party that engages the appraiser and is identified in the appraisal report. The appraiser’s obligations, including confidentiality, are tied to the client and the report’s intended users.

In a mortgage transaction, the lender is typically the client, even when the borrower pays for the appraisal. The borrower generally receives a copy but does not become the client or have the right to direct the appraiser’s conclusions. A third party also cannot automatically rely on an appraisal without the appraiser’s authorization.

For SVI, clients include banks, credit unions, mortgage lenders, servicers and capital markets firms that order valuation products. Identifying the client establishes who defines the assignment, who may rely on the results and who can request a reconsideration of value.