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Agreement Of Sale In Error

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Greg Parker

Member
Joined
Mar 20, 2005
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm completing an FHA assignment where I found the agreement of sale to have a parcel number for a different property in the description. Not one digit off, but five.

To my thinking, this is not a valid contract, and I would not be following 4000.1 by stating I have reviewed the executed contract. With the wrong parcel number, the argument could be made that the agreement is invalid.

I am trying to decide which of three options I need to do:

1.) Describe findings in report, submit report with a subject to clause for corrected document
2.) Request an addendum to the agreement and hold off on delivery
3.) Request a corrected contract and hold off on delivery.

or 4.) ??

Any help or advice is appreciated.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Why not call lender client, see how they want you to handle it?
 

Greg Parker

Member
Joined
Mar 20, 2005
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Why not call lender client, see how they want you to handle it?

It's an AMC, and I have called. I cant reach the lender. Their response is immediately to say "turn in the report". Unfortunately, in this case, if it means staying on the FHA roster or aggravating an AMC, I choose the roster.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
it really does not matter if it is one digit off or five. Wrong is wrong.
I just had one of these for a VA purchase. Since i am not the contract police it is not up to me to make them fix the contract. i just noted the inaccuracy in the "Analysis of Contract" section of the appraisal.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
It is an executed contract (signed ), it just has an error in parcel number..I assume it has legal description/address of subject?

Imo, submit report and note parcel number error in the contract analysis section. I am not aware of a HUD prohibition about a contract having an error...noting such an error is part of the analysis. The contract is
executed is signed/dated.

(they will probably ask you to change your comments later if contract is corrected)
 
Last edited:

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Greg-

I agree with Cindy given your efforts to contact the client (which is what I would have done to begin with as well).
Your assignment is to value the subject (presumably that was correctly identified). I'd note the discrepancy in the contract, state what I did to try to obtain clarification prior to completion (with the responses included), note that the discrepancy does not impact the value you opined but and your responsibility is to report to the client your analysis of the sales contract (which you are doing), and move on from there.

Good luck!
 

Greg Parker

Member
Joined
Mar 20, 2005
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Ok, I appreciate the advice. I think I may be running scared lately, getting stipulations on FHA reports for such picayune items that the contract seemed to be a big deal to me. Thanks everyone.
 
D

Deleted member 134708

Guest
Plus 1 for analyze the contract and appraise the home. They coulda sent a contract to buy the moon, doesn't matter to me. I analyzed it, was a random piece of paper, informed reader and went ahead and valued 123 Main st.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
So long as you appraised the "correct" property and you were not given an erroneous address
 
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