• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Field Review -- Verification of sale question

Status
Not open for further replies.

cgjerdetu

Thread Starter
Junior Member
Joined
Jan 29, 2002
Professional Status
Certified Residential Appraiser
State
California
I'm currently working on a field review of an appraisal that appears to be for a purchase, however, sale looks to be some sort of for sale by owner transaction. FSBOs are not common in this market and I always look at any with a huge dose of skepticism.

Problem: I've not been provided a copy of the purchase & sales contract, I have requested this from the client, but have not received it. (Client looks to be considering purchasing the loan from a mortgage broker).

I will typically contact the listing or selling agent when I review purchase appraisals and verify the terms of sale (plus ask a lot of questions regarding condition of the property). Would I be in violation of USPAP if I complete the review without verifying the sale? Is it sufficent to state reviewer (I) was not provided this information, and the client should closely look at the contract to determine if any sales concessions or personal property are included in the purchase price. (The original appraisal states that a copy of the sales contract was not reviewed by the appraiser -- information was obtained verbally).

If I were to receive a copy of the contract, would reviewing it be sufficient verification? My gut tells me I should hold the review hostage until I get the sales contract.

Carolyn
 

Kim Grant Matarazzo

Freshman Member
Joined
Apr 13, 2002
Pull out your USPAP 2001 edition and refer to AO-1 (page 115-117)
Is the estimated market value influenced by the FSBO transaction or does it appear to be line with the market? If not, and it appears the estimated value was affected by the FSBO or terms in the contract then I would do the same thing.... hold out for client to produce the sales contract.
 

Ray Ohler

Sophomore Member
Joined
Jan 15, 2002
Whether or not the client supplied the contract (which you are required to analyze - IF one is available), you can still complete the review. Outline the steps which you took (i.e., faxed "X" times, phoned "X" times talked to whoever) and that you requested the agreement but was informed "one was not available" or "its on its way and you never received it" whatever within the review document and perform the review. You may want to consider putting the statements regarding your attempts to obtain the sale agreement in BOLD AND IN CAPS.
 

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Carolyn-- the extent to which you verify data is determined by the scope of work that you and your client have agreed upon. Do they want you to verify the transaction? See SR3-1(c.)

Pat
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks