Who is allowed to see the appraisal report, and are there any confidentiality concerns? – North Carolina

Short Answer

In North Carolina, who may see an appraisal report usually depends on (1) who ordered it, (2) the purpose stated in the report, and (3) any contract or lender rules tied to the transaction. In a typical real estate matter, the ordering party and their attorney can review it, and it is commonly shared with other necessary participants (such as a lender or insurer) when the transaction requires it. Confidentiality concerns often come from privacy (personal financial details), negotiation strategy, and professional rules that limit redistribution of the report beyond its intended use.

Understanding the Problem

In North Carolina real estate matters, the key question is: who can receive and review an appraisal report once a value estimate is prepared, especially when the report is routed through an attorney. The decision point is whether the appraisal is being used only for internal advice and negotiation, or whether it must be shared with other parties to complete a transaction or comply with a lender’s process. Timing often matters because the report may arrive before any final decision is made, and sharing it too broadly can create avoidable disputes or privacy issues.

Apply the Law

North Carolina does not have one single “appraisal confidentiality” statute that covers every appraisal in every setting. Instead, confidentiality usually comes from the purpose of the appraisal engagement, professional standards that govern appraisers, privacy laws that protect consumer information, and (when an attorney is involved) attorney-client confidentiality. In addition, some North Carolina statutes address confidentiality in specific regulated contexts (such as information held by certain financial regulators), which can affect whether certain materials are public or shareable.

Key Requirements

Identify the ordering party and intended use: The person or entity that ordered the appraisal (often a lender, buyer, seller, or another stakeholder) typically controls distribution consistent with the report’s stated purpose.
Limit sharing to people who need it for the transaction: Distribution is usually safest when limited to the client, the client’s attorney, and any necessary third parties (for example, a lender or underwriter) tied to the stated use.
Protect private and strategic information: Appraisal reports can include sensitive details (occupancy, condition, photos, comparable sales analysis, and sometimes borrower-related context). Sharing can create privacy concerns and can also affect bargaining positions.

What the Statutes Say

N.C. Gen. Stat. § 47E-6 (Owner liability for disclosure of information provided by others) – Allows an owner, in certain residential disclosure situations, to attach written reports from licensed professionals and limits owner liability when the owner reasonably relies on those reports.
N.C. Gen. Stat. § 53-244.120 (Confidentiality of information) – Provides confidentiality protections for certain information shared with mortgage regulators and limits public disclosure in that regulatory context.
N.C. Gen. Stat. § 53-208.59 (Confidentiality) – Treats certain information obtained by the Commissioner in a regulated financial-services context as confidential and protected from public disclosure.
N.C. Gen. Stat. § 93A-83 (Broker price opinions and comparative market analyses for a fee) – Distinguishes broker price opinions/CMAs from appraisals and restricts how those opinions may be used and described, which can affect who should receive and rely on a value estimate document.

Analysis

Apply the Rule to the Facts: A property value estimate for a house was sent and then forwarded to the attorney handling the matter. That routing is generally consistent with keeping the report within a limited circle for legal review and strategy. Because no decision has been made yet, the main confidentiality concern is avoiding unnecessary distribution beyond the client and the attorney (and any required transaction participants), especially if the report contains sensitive details or could be used out of context.

Process & Timing

Who shares: Usually the party who ordered or received the appraisal first (often a lender, buyer, seller, or their agent). Where: Sharing is typically handled privately between the parties and counsel, not filed with the Register of Deeds. What: The appraisal report itself and any engagement letter or cover email stating the intended use. When: As soon as counsel can review it, and before it is forwarded to any third party not necessary to the stated purpose.
Controlled distribution: Counsel typically confirms who the client is, who ordered the report, and whether any lender or contract terms require delivery to another participant (such as an underwriter). If the report is only for advice, counsel often recommends limiting circulation and marking it as confidential in communications.
Decision and next communications: After review, the attorney discusses the report with the client and decides whether sharing it advances the goal (for example, supporting a negotiation position) or creates risk (for example, inviting disputes over condition adjustments or comparable selection). Updates can then be emailed to the necessary participants only.

Exceptions & Pitfalls

“Forwarding to everyone” risk: Sending the report to parties who do not need it can create privacy issues and can also harden negotiation positions if the report is unfavorable or contains disputed assumptions.
Mixing up appraisals vs. broker price opinions: North Carolina law draws a clear line between a licensed appraisal and a broker price opinion/CMA, including limits on using a broker opinion as a substitute when an appraisal is required. Confusing the two can lead to improper reliance or improper distribution for a mortgage-origination purpose.
Regulatory and lender overlays: Some information in regulated mortgage or financial-services settings can be protected from public disclosure when held by regulators, but that does not automatically mean the same document is “confidential” in every private dispute. Lender instructions and engagement terms often control what can be shared and with whom.
Attorney involvement does not automatically shield the report: An appraisal created by a third party is not automatically protected from disclosure just because it was emailed to an attorney. Confidentiality is strongest when the report is used narrowly for legal advice and shared only as needed.

Conclusion

In North Carolina, the people allowed to see an appraisal report usually include the party who ordered it and, when the report is used for legal advice or a transaction decision, that party’s attorney and other necessary transaction participants. Confidentiality concerns most often involve privacy and limiting redistribution beyond the report’s intended use. The practical next step is to confirm who ordered the appraisal and then limit sharing to only those people required for the transaction, before any contract or lender deadline passes.

Talk to a Real Estate Attorney

If a property value estimate or appraisal report is circulating and there are concerns about who should receive it or how it might be used in negotiations, our firm has experienced attorneys who can help explain options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.