Engagement Letter--penalty Clauses

[Pamela Crowley (Florida)]

Think I will send them a drawing with two boxes with no dimensions and ask the developer to give me a quote on building me a new home.

Perfect!!!

 

[Charles Drecksler]

I note in accepting the appraisal assignment the following: " subject to appraiser having access to the property in a reasonable time frame". If an appointment can't be set up or I don't hear back from the borrower in 24-48 hours, an email is sent and sometimes a call made notifying the lender/client. This way the client/lender knows that our office has tried and it is the fault of the borrower for not returning phone calls. I follow up on the third day if no contact is made and notify the lender to have the borrower contact the appraiser. At this point in time, the due date needs to be pushed back due to the lack of appraiser having access to the property because of the borrower. Most lenders just want to be notified of the status of the appraisal and work with you.

Our office does not sign if there is a penalty as stated. We cross that section out. Payment is also DUE UPON RECIEPT.

Have a great day!


Charles L. Drecksler
Drecksler & Associates, Inc.
www.RealEstateAppraiser.com

 

[PL1957]

Late delivery penalties are fairly common in commercial engagements, but are rarely enforced. The best way to avoid a penalty is to immediately ask the property contact for the necessary information (in writing) and indicate that any delay in receiving the information will result in a delayed report deliver. Of course, the client should be copied on the information/access request.

The thing most clients are trying to avoid is sending an order, scheduling closing, and not receiving the necessary report in time. As long as they know what's going on, delays are not a problem.