Appraisal disputes are unfortunately common, especially in volatile markets. Your agreement should clearly state that the appraisal represents your professional opinion based on market data and methodologies as of the inspection date. Include language that values may fluctuate and that the appraisal is not a guarantee of sale price.

Practical steps: Document your methodology thoroughly, keep comprehensive comparable sales data, and consider requiring dispute resolution through mediation before litigation. Many disputes arise from misunderstanding the appraisal’s purpose or effective date.

Yes, you can be subpoenaed to testify, but your agreement can control the terms. Many appraisers include clauses requiring client consent before being designated as an expert witness and separate compensation for testimony preparation and court appearances.

Best practice: Specify that your base fee doesn’t include litigation support. Typical testimony rates are 2-3x your normal hourly rate, plus preparation time and expenses. Some appraisers require advance deposits for potential testimony.

USPAP requires workfile retention for 5 years from the date of the report or 2 years after final disposition in the case of litigation, whichever is longer. However, many states have longer requirements, and some professional organizations recommend 7-10 years.

Practical consideration: Longer retention periods protect you if disputes arise years later, but increase storage costs and privacy obligations. Digital storage makes longer retention more feasible, but ensure you have secure backup systems.

Your cancellation policy should address this upfront. Common approaches include: (1) 24-48 hour notice required, (2) payment for work completed if cancellation occurs after inspection begins, and (3) potential cancellation fees for short-notice cancellations.

Industry standard: Most appraisers allow free cancellation with 24+ hours notice, but charge for work performed if the inspection has occurred. Some charge 50% of the base fee for same-day cancellations to cover scheduling losses.

Client indemnification clauses protect you from liability arising from the client’s misconduct, false information, or misuse of your appraisal. This is especially important when clients might use your appraisal for purposes beyond what you’ve verified.

Example scenarios: Client provides false ownership documentation, uses insurance appraisal for tax purposes, or shares confidential appraisal information inappropriately. Indemnification shifts liability for these client actions back to the client where it belongs.

Rush requests increase error risk due to compressed timelines. Charge appropriate premiums (typically 40-100% above standard rates) and include specific disclaimers about the accelerated timeline’s impact on research depth.

Best practices: Define “rush” clearly (e.g., completion within 48 hours), require written acknowledgment of timeline constraints, and consider limiting rush services to items within your core expertise where you have ready access to comparable data.

Professional liability (E&O) insurance is essential and often required by professional organizations. Coverage should include defense costs and typically ranges from $1-5 million depending on your practice size and typical appraisal values.

Additional coverage: General liability for property damage during inspections, cyber liability for data breaches, and business interruption insurance. Some appraisers also carry personal property coverage for equipment used in mobile inspections.