Contract? What contract?

[AJL118]

In my past experience, this problem is mostly caused by mortgage brokers. I have been through all of the hoops trying to get contract copies, but all we have to rely on is what they choose to give us. Choose your own caveats on the 1004 to try to protect yourself, but what is repeatedly stated in this forum by the "elders" is that you don't appraise to the contract. If you have been fed bovine excrement, so state in some fashion, thereby shoving that discovery back on the lender/client. They have or will have a copy of the same contract. Or.....Is it a copy of the same contact? Being cynical, probably not! A one-sided chess game. and I don't like our side.

 

[Amy Perkins]

Tell them to you will be putting the appraisal on hold until you recieve the contract.

 

[Lee Lansford]

Does anyone else's bulls**t radar go crazy when no one involved in the deal will provide a copy of the sales contract?

The realtor said he would fax it and now he doesn't take my calls or return my messages and the client says they'll try and get it (that was yesterday).

They gave me a sales price which I'm thinking they'll take if they can get it otherwise maybe they want me to set the sales price with my report.

FWIW thi is new construction and the "sales price" is the same as the "listing price".

Your client should provide you with the contract of sale.

 

[Mike Boyd]

Notify your client that you have made several attempts to get a copy of the contract and that if he/she cannot provide a copy by close of business today, you will submit the report with a note outlining the efforts you took to get a copy. And, if a copy of the contract is produced after delivery of the report, you will have to charge an additional fee for analysis and reporting provided the signature date is prior to the date of value.

I like that!!!

 

[Michigan CG]

Getting that contract is a MUST.

And, dang it, would it be too much to have them .pdf and e-mail the thing instead of 35 pages over a FAX...?

;^)

Dave...

I dunno Dave, but this whole mindset of needing the contract kind of confuses me. I know that in purchases we are supposed to try to get the contract, but I personally don't need one to appraise. For many it is a crutch for the "value".

I was brought up a red headed step child in my appraisal training and we did less than 5% purchase appraisals, and I have never done s SFR purchase appraisal.

Getting an assignment with no "target value" is the way I was brought up and I think it makes me a better appraiser. Most of our clients call and say appraise it. That's it.

As for your fax problem, get myfax.com. It is awesome and you will save more money on the paper and cartridges than it costs for the service. Fax right to your computer and if you use outlook you can fax from your computer.

 

[Marcia Langley]

For myself, I do not proceed without a contract. I might under very special circumstances for a very trustworthy client but so far those clients have never asked me to.


In the present case, I would have the same concern that you do. That the parties were going to misuse my appraisal for setting the price.


If I decided to proceed without the contract I would make it very clear to my client that there would be no corrections or additions to the appraisal once submitted. This is a matter of getting the scope of work understood up front.

Either they want you to review the contract or they don't. No second chances. If they don't want you to analyze the contract, the report will look funny. You won't have documentation for anything. Is the seller the owner of public record? I don't know. What is the contract date and amount? I don't know. You see what I mean.

It's all well and good to say we should not be reviewing contracts but as long as I have to follow the existing published GSE guidelines and sign the certifications, then I won't produce a report without the contract.

If the contract is produced at a later date I would do a whole new appraisal, new inspection, everything. The client needs to take responsibility for this.

 

[Pat Butler]

I won't do it without a contract unless there's a legitimate reason for them not having it. They have to provide it to the lender, so the lender should always have it.

Yes, the appraisal can still be done pursuant to USPAP, but why enter into a situation where someone is trying to hide something from you?

 

[hglenbetts]

I've been sent "contracts" that are completed except for any signatures.

I've been sent "contracts" stating "price subject to appraised value". (sow now involves setting a purchase price and determining value for financing:new_all_coholic

I always comment in the report on the completeness of the contract and an overview of the terms.

"A review of the fully executed purchase contract, dated xx/xx/xx reflects terms and conditions typical to the market."

or

"This appraiser has reviewed an Offer to Purchase on this property, provided by the client, that reflects terms and conditions typical to the market, but the offer lacks signatures that would create a binding contract."

etc....etc...

Report the facts.:blush:

 

[Hamlet]

I've been sent "contracts" that are completed except for any signatures.

I've been sent "contracts" stating "price subject to appraised value". (sow now involves setting a purchase price and determining value for financing:new_all_coholic

I always comment in the report on the completeness of the contract and an overview of the terms.

"A review of the fully executed purchase contract, dated xx/xx/xx reflects terms and conditions typical to the market."

or

"This appraiser has reviewed an Offer to Purchase on this property, provided by the client, that reflects terms and conditions typical to the market, but the offer lacks signatures that would create a binding contract."

etc....etc...

Report the facts.:blush:

Glen, I may have you confused with someone else, but you look like the guy who puts contracts out, not reviews them!

 

[PropertyEconomics]

Getting that contract is a MUST.

And, dang it, would it be too much to have them .pdf and e-mail the thing instead of 35 pages over a FAX...?

;^)

Dave...

You only have to have a contract analysis if one is provided to you during the normal course of business. Its not a MUST .. its a WANT, but not absolutely necessary. What you wanna bet the price is well below the listing at this point.