Section 7: Confidentiality of Appraisals
Anchor: #i1005802General
The appraisal report is not to be shown to, read to, permitted to be read by, or lent to any person other than employees of TxDOT, the OAG and the FHWA, and only then in the discharge of the official business of TxDOT. “Official business” includes supplying the property owner with his/her due copy of the report, pursuant to Texas Property Code, §21.0111. The appraisal report is for use of TxDOT in determining just compensation, for study and review by the negotiator and, when applicable, for use by the OAG in eminent domain proceedings, and for review by the FHWA for Federal cost participation.
From the OAG’s viewpoint, the purpose of the appraisal report is for the State’s use in connection with the investigation and defense of the claims of the property owner for compensation and damages, if any, arising out of the property acquisition by TxDOT. Appraisal reports, therefore, must be confidential. This should not be construed to mean that review of such reports should be denied to authorized personnel engaged in a legal audit of TxDOT.
Subject to Open Records Act requirements, which may require disclosure, appraisal reports may only be disclosed after all parcels on a project have been acquired. Any request for disclosure before that time should be handled as Open Record Requests within its timelines.
In addition, at least one of the well-recognized appraisal associations requires that its admission committee review and study each candidate’s/applicant’s files and appraisals to determine the competency and quality of appraisal reports similar to other appraisers having comparable experience. If an appraiser wishes to acknowledge assistance in the gathering of factual data by an associate, he/she may do so. However, the statement should also include words to the effect that the opinion of value set out on page one (in the certificate) is his/her individual opinion of value.
Form ROW-A-2, Contract for Appraisal Services, provides, in part:
“ . . . appraisal information concerning the property assigned for appraisal services whether contained within the appraisal report to the State or not is to be treated as confidential . . . except on written authorization by the State or upon proper order of the court . . .”
TxDOT encourages professional designations for both fee and staff appraisers. Therefore, in those instances where an appraiser must make his/her files and reports available to a recognized appraisal association admissions committee for confidential consideration of the appraiser’s ability, there is no violation of confidence with TxDOT concerning reports on parcels which have already been acquired by the State.