Pat Butler
Senior Member
- Joined
- Jan 17, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Illinois
When I know in advance that an appraisal is going to be used for litigation then I include the appropriate language in the engagement agreement. Problem is, a lot of detail is needed. My engagement agreements are quite detailed with respect to my fees and it isn't something that I want to spend a lot of time on 'just in case' a particular appraisal is going to be used in court.
The 'gotcha' situations are when the client says that the appraiser will not be used in court, then they serve you with a subpeona. What I started doing years ago was at least stating my hourly fee in my simple engagement agreements. The legitimate clients will come back to me for negotiate my fees/services. However, the hourly fee covers those situations when you do a normal appraisal for which the client tells you that you will not be needed in court-- then serves you with a subpeona. By at least having an hourly rate in the engagement agreement keeps the court from telling you how much you are worth.
The 'gotcha' situations are when the client says that the appraiser will not be used in court, then they serve you with a subpeona. What I started doing years ago was at least stating my hourly fee in my simple engagement agreements. The legitimate clients will come back to me for negotiate my fees/services. However, the hourly fee covers those situations when you do a normal appraisal for which the client tells you that you will not be needed in court-- then serves you with a subpeona. By at least having an hourly rate in the engagement agreement keeps the court from telling you how much you are worth.
