Can I Have An Effective Date Prior To Contract Date

[CANative]

Here's the value on the effective date of the appraisal which is the same as the inspection date.

Here's all the contract stuff I have received from the client and this is what I think about it.

The end.

 

[Fargo1]

Here's the value on the effective date of the appraisal which is the same as the inspection date.

Here's all the contract stuff I have received from the client and this is what I think about it.

The end.

So, if I understand you correctly, your basically saying 'disclose everything'. That is the direction I am leaning. The guy at the VA said not to even mention the addendum dated after the inspection date, but that seems wrong to me. I have them and I was aware of them when I wrote the original report. So I like the idea of disclosing everything.

 

[Don Clark]

Had a nice chat with a guy at the VA. His premise is that I can not have an effect date prior to contract date because the contract is part of the scope of work. If the contract changes the scope of work changes and it is a new appraisal. I can do a new report or an update. But either way, I would need to revisit the property to have an effective date after the contract date.

Where in USPAP does it state that you have to revisit the property in a new assignment?

The effective date does not necessarily have to be the date of the inspection. See FAQ 130, page 272 USPAP.

Also, you can add a comment in the report(I use page 3 of the URAR) to make comments on things asked and answered after the report date. You can change the date of the report, and as long as you do not change the effective date, it is not a new assignment.

 

[sandpiperapp]

How many times to we have to kick this dead horse?

The contracts were signed on a specific date. Any change to the contract is not a new contract, it is an amendment to the contract. The original contract date with the original meeting of the minds should be used. The amendments and their dates should be noted.

As far as the contract date being after the effective date, who cares. Most appraisas have a shelf life of four to six months, so if it within that time frame, I do not see a problem from an appraisal standpoint. A lender may have different underwriting criteria, but really if the effective date is on Monday, and the contracts are signed on Wed, as long as the property has not burned down, who cares.

Ever since FHA had this stupid rule about the inspection date cant be before the FHA number being issued, there has been unnecessary concern over the dates being used.

 

[Don Clark]

How many times to we have to kick this dead horse?

The contracts were signed on a specific date. Any change to the contract is not a new contract, it is an amendment to the contract. The original contract date with the original meeting of the minds should be used. The amendments and their dates should be noted.

As far as the contract date being after the effective date, who cares. Most appraisas have a shelf life of four to six months, so if it within that time frame, I do not see a problem from an appraisal standpoint. A lender may have different underwriting criteria, but really if the effective date is on Monday, and the contracts are signed on Wed, as long as the property has not burned down, who cares.

Ever since FHA had this stupid rule about the inspection date cant be before the FHA number being issued, there has been unnecessary concern over the dates being used.

You are wrong. Any change to the contract after the effective date of the assignment would be a new assignment since the contract is part of the scope of work. You can note the new terms in an addenda to the REPORT and change the date of the report. Any change to the EFFECTIVE DATE would be a new assignment. Better brush up on USPAP before you go giving advice on a forum such as this. Better read AO-3.

 

[CANative]

I just can't stand it any more.

lol

 

[Fargo1]

Where in USPAP does it state that you have to revisit the property in a new assignment? The effective date does not necessarily have to be the date of the inspection. See FAQ 130, page 272 USPAP.

In this case, I am using the 1004 and it states in the report the effective date is the date of inspection.

I think in many ways this is a scope of work issue. Does a new scope of work require a revisit. If the property doesn't change why do I need to revisit the property. I think you are correct on this. Also what is the definition of the term 'effective date'? Does effective date only refer to the condition of the property or is it some kind of deadline date that no information after that date is submissable? What if other additional information shows up between the effective date and the signature date?

Man, I'm starting to confuse myself here. I thought I learned all of this my first year appraising.

 

[Fargo1]

Thinking about scope of work. I always thought the scope of work could be developed during the course of the appraisal. Where does it say that the scope of work must be predetermined before viewing the property? If the Scope of work is developed through the course of the appraisal process is it not open to change after the date of inspection/effective date?

I'm really not sure I need to change anything on my report. I clearly stated the date of the contract and the date of inspection as the effective date. So after all of this I find myself back at my initial question. Can the contract date be after the effective date? I had the contract during the development phase of the appraisal. It was part of my scope of work. It just came after the inspection.

 

[CANative]

Who is going to try an unravel the exact dates of inspections, when certain parties signed certain portions of certain addenda, and then try to rebuild it all in context with Fannie, Freddie, FHA, VA, USPAP and any other lettered agencies when all they want is a value and some input on what the contract means?

 

[glenn walker]

I am banging my head on my concrete driveway .. Just do the appraisal and be done .. LOL