A lender
on a loan to be secured by residential real property must
give the applicant (borrower) notice of the applicant’s
right, upon request, to receive a copy of the appraisal
report, provided the applicant has paid for the appraisal.
The lender must give this notice with the "good faith
estimate" of loan charges required by the Real Estate
Settlement Procedures Act (RESPA). If the loan does not
fall under the RESPA requirement, the lender must give
the appraisal notice at the time of application or not
later than 15 days after receipt of the application. The
notice must be a separate document printed in 10-point
type.
For nonresidential property (i.e., other than one-to-four
residential units), the notice is only required if the
loan involves purchase money financing or a refinancing
of purchase money debt. If a real estate broker
makes or arranges a loan in an amount less than $30,000
secured by a first trust deed, or a loan of less than
$20,000 secured by a junior trust deed, the broker must
deliver a copy of the appraisal to both the borrower
and the lender at or before the closing of the loan
transaction. This requirement only depends on the borrower
having been charged a fee for the appraisal.
Business and Professions Code Sections
10241.3 and 11423
Equal Credit Opportunity Act
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