By Cass Rains, Staff Writer
A former Enid appraiser lost an appeal to keep his license, which was revoked when another appraiser raised questions about a suspect appraisal of commercial property in Oklahoma County.
Dan W. Montague, of The Montague Co. Inc., lost the appeal to keep his license Aug. 8 when a Garfield County judge ruled in favor of the Oklahoma Real Estate Appraiser Board, which initially revoked the license in February.
According to a news release from OREAB, Montague “inappropriately inflated the value of a commercial property in an appraisal report.” The board concluded Montague failed to comply with provisions of the Uniform Standards of Professional Appraisal Practice, as required by the Oklahoma Real Estate Appraiser Act.
Revocation of Montague’s license is permanent, said an OREAB spokesman. However, Montague has the option to apply for another license, but that license must be approved by the board.
According to the complaint filed with the board at the first of the year, in late 2005 a group purchased a parcel of land, formerly known as Lions Family Fun Park, for development.
The purchase price of the land, which was under contract for “years,” was $3.8 million and one of the partners retained Montague to appraise the land. The partner said he had no other interest other than to know the value of the land. He said the appraisal was not requested for loan or banking purposes.
On Dec. 19, 2005, Monta-gue prepared an appraisal report on the property dated Dec. 16, 2005, which reported a final estimated value of $13.3 million. Montague certified the report was “performed in conformity with the Uniform Standards of Professional Appraisal Practice,” according to the complaint.
A possible investor in the development contacted another appraiser saying costs had increased due to another appraisal. The potential investor asked the Oklahoma City appraiser to review the report. Upon review, the other appraiser declared Montague’s report “junk.”
Two appraisers testified Montague’s chosen comparables used in his report were not comparable to the land to be developed. The appraisers also noted Montague reported comprables with “significantly smaller sizes.” Property values per square foot and property sizes work inversely, with larger parcels selling for a lower per-unit value than smaller values. The two appraisers also noted two of the comprables had different economic influences, which would also alter value.
“This approach resulted in an artificially inflated value,” according to the complaint.
When reached Monday, Montague said he had “no comment.”
Oklahoma Real Estate Appraiser Board regulates matters related to licensing and oversight of real estate appraisers in Oklahoma, including issuance of licenses, examination and background investigation of applicants and administration of disciplinary procedures. State Insurance Commissioner Kim Holland serves as chairperson of the Real Estate Appraiser Board.
