Broadband internet requirements on UAD 3.6
I've tried looking online to determine exactly what the requirements are under the new UAD 3.6 forms regarding due diligence when confirming that internet service is available at a property. An older member of my family is approaching 70 and unfortunately needs to continue doing appraisals for the foreseeable future. This whole transition has been stressing him out because he doesn't feel particularly confident about moving to the new appraisal forms, and one of his biggest concerns is the broadband internet requirement. He thinks this could potentially become an area of litigation.
We're in a fairly rural part of Middle Tennessee, and the issue comes up because many ISPs will technically offer service to a property, but the homeowner may be responsible for getting the line from the utility poles on the main road to the house if the distance exceeds a certain amount.
For example, there have been several remote cabins around here where an ISP technically offered service, but the property was more than a mile from the nearest connection point. The ISP would provide the service once the infrastructure was in place, but the homeowner was responsible for paying the entire cost of running the line. In some cases, that has resulted in litigation because the property was technically considered to have internet available, but actually obtaining that service required a significant additional expense.
So, under UAD 3.6, is there a specific requirement for the appraiser to determine whether internet service is actually available to the property without the homeowner having to incur a substantial additional infrastructure cost? Or is it sufficient to establish that an ISP lists the property as being within its service area?
For example, would it be considered adequate due diligence to check the FCC's broadband availability map and document that internet service is shown as available at the property? Or would the appraiser be expected to contact the local ISP and verify that service can actually be connected to the home under normal installation terms?
This is one of the questions he has been asking me as he tries to transition to the new forms, and I haven't been able to find a clear answer. I'm curious how other appraisers are handling this in practice. Are you relying on the FCC broadband availability information, or are you actually contacting the local ISP to verify that service can be provided to the property?
With all of the changes coming with UAD 3.6, he's particularly concerned about the possibility of liability down the road. For example, someone could purchase a rural property because the appraisal indicates that high-speed internet is available, only to discover after closing that getting the advertised service to the house requires tens of thousands of dollars in infrastructure. That seems like the kind of situation that could potentially result in a lawsuit, particularly with people moving here from out of state to work remotely and expecting reliable gigabit internet service.