September 19th, 2005

Complaint / Real Estate Appraiser

Filed against John Dyson, Jr (a/k/a Jack)

Colorado Board of Real Estate Appraisers
1900 Grant St, #600
Denver, CO 80203

Attn: Enforcement

Re: My File Number -- 5036
Subject Property: 6276 W 68th Pl, Arvada, CO 80003

This is a complaint against John Dyson, Jr (a/k/a Jack), License Number CR01319648.

I have not contacted the appraiser. This matter is not under litigation.

Statement Section:

John Dyson has/is:

Violated the USPAP ethics rule.

Violated a standard(s) for the development or communication of a real estate appraisal, specifically standards 1 and 2.

Guilty of breech of trust in a business transaction.

Comments:

The appraiser, John W Dyson is currently under sanction by HUD.

USPAP Ethics Rule: An appraiser must perform assignments ethically. An appraiser must perform assignments with impartiality, objectivity, and independence, without accommodation of personal interests.

An appraiser must not accept an assignment that includes the reporting of predetermined opinions and conclusions.

An appraiser must not communicate assignment results in a misleading or fraudulent manner. [Note: Fraud = Intentional deception to cause a person to give up money. Something said or done to deceive.]

It is unethical for an appraiser to accept compensation for performing an assignment when it is contingent upon:

1) the reporting of a predetermined result (e.g., opinion of value);
2) a direction in assignment results that favor the cause of the client;
3) the amount of a value opinion;
4) the attainment of a stipulated result; or
5) the occurrence of a subsequent event (i.e., loan approval)

It is readily apparent that John Dyson violated all of the above cited portions of the USPAP Ethics Rule. John Dyson is a competent appraiser. John Dyson is also an unethical appraiser. He set out to produce a report that allowed the loan to close. He began the process with a requested minimum value, and worked backwards to support that figure. He did so in a manner that was as competent and as unethical as necessary to accomplish the primary objective – allow the loan to close.

Pursuant to USPAP Standards Rule 1-5(a) and 2-2(b)(ix), the appraiser is required to review and analyze the contract and the listing (market exposure) and to “summarize the information analyzed, the appraisal procedures followed, and the reasoning that supports the analyses, opinions and conclusions.”

Pursuant to USPAP AO-1, the appraiser must take into account the listing [market exposure], the agreed price, and the pending sale of the subject. The appraiser’s failure to analyze these facts may exclude important information....(See AO-1, lines 32-39).

Pursuant to USPAP Standards Rule 1-5(a) and 2-2(b)(ix), if a copy of the contract was unobtainable, a statement on the efforts undertaken by the appraiser to obtain a copy of the contract is required. If the contract is irrelevant, a statement acknowledging the existence of the information and citing its lack of relevance is required. It is unclear if the appraiser (John Dyson) reviewed a copy of the contract. If he did not review a copy of the contract, the required statement is not in the report.

Page one of the URAR says seller concession is “ N/A”. This is misleading and/or factually incorrect. The sales contract (copy attached) says the seller concession is $10,835. The MLS listing says the concession is $11,110.

If he did review a copy of the contract, the report violates the USPAP requirement to “summarize the information analyzed and appraisal procedures followed”, i.e., clearly state that he did review a copy of the contract. If he did review the contract, he either missed the concession or he lied about it.

There is a USPAP Compliance Addendum in the report. It says (in pertinent part) “The subject was listed for $224,900 and is under contract for $228,000”. How could John Dyson conclude that the market value was $229,000 when it was obvious that you, I, or anyone else could have bought the property for $224,900? The appraisal report does not answer this question.

USPAP AO-1 requires the appraiser to consider the pending sale of the subject. There is nothing in the report to suggest compliance with AO-1.

The plain meaning of USPAP Standards Rule 2-2(b)(ix) requires the report to provide sufficient detail for the intended user(s) to understand the reasoning and the rationale for how the market value could be higher than the publicly stated asking price.

In the appraisal report, there is no mention of the appraisal procedures followed with regard to analysis of the sales contract, market exposure, the agreed price, and the pending sale of the subject – this is a violation of USPAP Standards Rule 1-5(a) and 2-2(b)(ix), and AO-1.

Per my dictionary: Analysis = An examination of the parts to find out their nature, proportion, interrelationship, etc. A detailed examination. A statement of the results of this process.

What is the interrelationship of the asking price to the market value of the subject property? The report does not examine this issue.

USPAP dictates the report must include a reconciliation of the difference between the asking price and the appraised value, i.e., a stated and plausible reason. There is no reasoning and there is no rationale – this is a violation of USPAP Standards Rule 1-5(a) and 2-2(b)(ix).

Certification:

I certify that the statements and information supplied by me in this complaint including the attachments are true and correct to the best of my knowledge and belief.

Philip G Rice
11268 E Linvale Dr
Aurora, CO 80014
720-282-3376

Attachments:

Appraisal Report (5 pages)
HUD Printout Showing Sanction (1 page)
Contract Worksheet (1 page)
Sales Contract (2 pages)
MLS Listing (1 page)
MLS Listing History (1 page)
Deeds Report (1 page)

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