Gift of Equity disclosure?

[Vermonter]

Non-arms length sale between family members with a gift of equity in the P&S. No MLS, Local bank, 1004UAD. I disclosed the gift in the contract section under Financial Assistance and explained in the addendum.

Got a revision request stating that "only regular seller concessions go in the field on page 1". I pointed out that technically it says "gift" right on the form, but they're pushing hard on this for some reason. Not unheard of for this client to find weird revision requests when send reports in exceptionally early (due date is next Monday and I sent it in a week early), but they usually change course with some explanation. Not this time.

Am I the only one that reports gift of equity in the contract concessions field or is this request odd?

 

[Flakey]

The 1004 says right on the form; Is there any financial assistance (loan charges, sale concessions, GIFT or downpayment assistance, etc.) to be paid by any party on behalf of the borrower?

 

[Surf Cat]

Am I the only one that reports gift of equity in the contract concessions field or is this request odd?

Sounds like you did it right to me.... as you stated, it says it right there in the form. I also do what you have done, explain in the addendum that this is an interfamily transaction and a non-arms length transaction.

Is this for an AMC? Did you use the GP form?

 

[Mike Ault]

Non-arms length sale between family members with a gift of equity in the P&S. No MLS, Local bank, 1004UAD. I disclosed the gift in the contract section under Financial Assistance and explained in the addendum.

Got a revision request stating that "only regular seller concessions go in the field on page 1". I pointed out that technically it says "gift" right on the form, but they're pushing hard on this for some reason. Not unheard of for this client to find weird revision requests when send reports in exceptionally early (due date is next Monday and I sent it in a week early), but they usually change course with some explanation. Not this time.

Am I the only one that reports gift of equity in the contract concessions field or is this request odd?

That's a very odd, misleading request. Any inducement to sell should be reported, particularly "irregular ones". I would inform my client that I'm going to get the opinion of the state Atty. Gen.'s office on the matter prior to revising my report. Unless they feel like canceling the revision request all of a sudden.

 

[TerryRohrer]

Not a change I would make without explicit documentation that requires it their way. I would ask for the specific, detailed source that they are basing their demand on. Requests based on personal preferences or a need for an appraiser to be misleading typically disappear when you ask for documentation.

 

[Vermonter]

That's a very odd, misleading request.

That's what I thought. Especially with the pushback. That goes above the usual "finding something for the sake of finding something" revision.

Conveyed that sentiment in my second explanation so she may be finally understanding.

 

[Tom4value]

Sounds like they are trying to pull something over on someone and you are ruining it. Don't be a patsy. Professionally explain that you have to disclose it to stay on the good with USPAP.