Engagement Letter Suggestions

[Anthem]

I have an order coming through from a Buyer for a Land Appraisal . The buyer is paying cash, the appraisal is for his own peace of mind and his portfolio file.


In the past I have done these types of reports without an engagement letter. I need to stop doing that.

Plus my gut tells me that I BETTER DO IT THIS TIME.

Any suggestions on what to include in the letter ?

 

[Michael Regan]

i'm not even going to go (there, thier) ya you (no, know) what I mean

 

[Elliott]

If there's an assignment that has me concerned to the
point of needing an engagement letter....that tells me
I don't want to do the assignment. Owner probably has
a preconcieved value and wants me to confirm it.

The other engagement letter I prefer is cash or check at
the time of inspection.

Elliott

 

[Michael Regan]

every assignment is required to have an engagement letter otherwise how do you identify use, user, scope, this is appraisal 101. the lack of understanding on this point makes me throw up. be a profesional.

 

[Anthem]

every assignment is required to have an engagement letter otherwise how do you identify use, user, scope, this is appraisal 101. the lack of understanding on this point makes me throw up. be a profesional.

Obviously I have always required an order and agreement. And I understand Scope Of Work.. have studied it extensively and of course write them everyday. I guess I should have been more clear.

I am talking about Covering My ***.

I usually just tell them the regular stuff i.e. " you won't be able to use this for a mortgage " yada yada

I want to add all of this into a formal engagement letter.

 

[Webbed Feet]

Mr. Chase,

You need a lot more on this than you are thinking I beleive and also more than anyone so far is bothering to try and suggest.

If there is any appraisal that is a goodie to get sued over it's bare land. Which is because chronically we are asked to appraise bare land (especially acreage sites) without benefit of surveys, applications to J.A. for building, soil testing for septic systems and wells, on and on. Many times the appraiser gets told the site is buildable, but the moment any of this stuff is asked for it's "we don't have any of that yet and have to have an appraisal first."

So you need agreement, in writing, about HC's and EA's to be used, the definition of M.V. to be used... on and on... Intended Use, Intended Users, who's the client, it all needs to be in the engagement. In your case, due to client is a potential buyer... a clause that the appraisal is not a recommendation to act nor is it a warrenty the land can be sold for your opinion of value.

This would be a good one to finally break down and get some legal advise on engagement contracts, before you finally hit one that you end up wishing you had of.

Barry Dayton

 

[Elliott]

Michael,
I not questioning that you may be right. Could
you give me a USPAP citation? I looked in the
index and they don't have an entry for "engagement letter."

 

[Michael Regan]

all appraisals are "goodies" to be sued on.

In letter, er i mean, in all my letters of engagement, all supporting documentation must be provided, i need to provide creadible appraisal assignment, per use, intended user, scope.

If all you have seen is a request for an appraisal form a mortgage broker your entire career. Is it your fault you don't know how to write an engagement letter.

YES IT IS

I'm gonna knock you resi form appraisers cause you have never probaly written an engagement letter like us commercial guys.

And yes thats what makes me throw up, appraisers not knowing what there getting into.


Once again an engagement letter defines an assignment.

 

[Michael Regan]

Mr. Reed Its called Standard 1

In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses to produce a creadible appraisal.

Um its on page 17 of the July 1, 2006 USPAP Edition.

Honestly it really a good read

 

[Anthem]

all appraisals are "goodies" to be sued on.

In letter, er i mean, in all my letters of engagement, all supporting documentation must be provided, i need to provide creadible appraisal assignment, per use, intended user, scope.

If all you have seen is a request for an appraisal form a mortgage broker your entire career. Is it your fault you don't know how to write an engagement letter.

YES IT IS

I'm gonna knock you resi form appraisers cause you have never probaly written an engagement letter like us commercial guys.

And yes thats what makes me throw up, appraisers not knowing what there getting into.


Once again an engagement letter defines an assignment.

Sounds like someone has some anger issues:new_2gunsfiring_v1: