Field Review -- Verification of sale question

[cgjerdetu]

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]

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]

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]

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