Question:

I am a certified general appraiser whose practice includes both residential and commercial appraisal assignments. Recently it has become very common for my mortgage lending “clients” to require me to pick up the check for the appraisal fee from the borrower.  This takes place in both residential and commercial assignments.  Since I am being paid directly by the borrower, does the borrower become the client?

Response:

No. USPAP defines the client as:

The party or parties who engage an appraiser (by employment or contract) in a specific assignment.

Comment: The client identified by the appraiser in an appraisal, appraisal review, or appraisal consulting assignment (or in the assignment workfile) is the party or parties with whom the appraiser has an appraiser-client relationship in the related assignment, and may be an individual, group, or entity.

The act of the borrower or any other entity paying the appraiser does not make them the client under USPAP. However, state law could take precedence over USPAP in this situation. Therefore, you should contact the pertinent jurisdictions to ensure that there is not a conflict between applicable law and USPAP.