Contract Price Change After Effective Date - Client Wants It In The Contract Section

[sandpiperapp]

"would not mandate treating the request as a new assignment."
USPAP says to analyze everything available as of the effective date. The AO, only says that USPAP would not MANDATE. It dos not say it must be treated as a new assignment OR that it must be treated as the same assignment.
As an appraiser I say that it is a new assignment. I cannot be responsible for changes after the effective date. If the lenders, buyers, and sellers want to change the terms, fine , but If I have to analyze new information, it is a new assignment. Done
USPAP does not require any analysis after the effective date. The AO only "advises" that USPAP does not mandate that it is a new assignment

 

[J Grant]

As an appraiser I say that it is a new assignment.

How can you have an assignment without a new effective date, which needs a new inspection, which means client has to agree to it.

 

[Mike Garrett RAA]

And the beat goes on,,,and on...and on!

 

[Peter LeQuire]

"...if the client does require a more current effective date, the
request must be treated as a new assignment."

This is not hybridizing requirements. It's a simple explanation stating that a new assignment is required if the effective date of the appraisal is changed to accommodate the contract revision's new date. The new assignment would be required to have a new effective date: all of the Standards that relate to appraisal development and reporting would come into play, including reporting the analysis of all purchase agreements known to the appraiser.

Of course, an appraiser is free to refuse the request.

 

[J Grant]

A new signature date explaining a revision such as a new contract addendum is Not the same as a new effective date. If only change is contract price or terms, re the opinion of value and comps etc have not changed, why would a new effective date be needed?

 

[Peter LeQuire]

The USPAP FAQ is pretty clear: the revised contract was dated subsequent to the effective date of the appraisal AND the client wants/requires the appraisal to reflect that revised contract shown as THE contract in the appraisal. The FAQ says it's a new assignment. THAT's why a new effective date would be needed, and the FAQ indicates that is permissible.

 

[J Grant]

"...if the client does require a more current effective date, the
request must be treated as a new assignment."

Only if the client requires a more current effective date must the request be treated as a new assignment.

The client is asking the new contract info be added to report with a new signature date with no change to original effective date. The client is NOT requiring a more current effective date.

 

[Mike Garrett RAA]

I think anytime you make changes to your appraisal report other than minor technical corrections, ie, a wrong checked box or correcting an adjustment as an example, you need to change the date of report. That does not constitute a new assignment. My opinion...and I'm sticking to it.

 

[sandpiperapp]

As an appraiser I say that it is a new assignment.

How can you have an assignment without a new effective date, which needs a new inspection, which means client has to agree to it.

We are being asked to analyze NEW info that has occurred after the effective date of the report. New info, new effective date, new assignment. Just because the lenders want it and the AO says it does not mandate a new effective date, does not mean in actuality you are not changing the effective date, whether you do so on the form or not.
If you were completing a retro appraisal for 04/01/2010, would you use a sale that closed 04/09/2010, no
If they were to say they were going to add on 200 sf of living area one week after the effective date, everybody would be agreeing that it is a new assignment.
Contract changes after the effective date of the report are not relevant to the report as written.

This whole thing has gotten twisted because the lenders want something on the report and they don't want to pay for it.

I do not want to be responsible for changing or adding something to the report every time someone in the transaction changes or needs something else.

We are truly only responsible to analyze changes to the contract that we are notified of before the effective date of the report.

 

[J Grant]

New info, new effective date, new assignment

The URAR says the effective date is when you inspected the property, so if it's a lending appraisal on URAR form and a change in contract occurs and you take that to mean it must be a new assignment with a new effective date that would mean you would go out and do a new inspection.