New construction: as is vs subject to

[J Grant]

What part of the construction contract changes when a lender does an escrow holdback?

That would be up to the parties, but typically when a contract changes they add an initialed or signed and dated addendum page ( or they can cross out landscaping on contract and initial it )

 

[alebrewer]

That would be up to the parties, but typically when a contract changes they add an initialed or signed and dated addendum page ( or they can cross out landscaping on contract and initial it )

Again - what part of the construction contract changes when the lender does an escrow holdback?

 

[J Grant]

Again - what part of the construction contract changes when the lender does an escrow holdback?

Did you not hear me the first time ? How would I know, since every contract is different. Appraisers don't write contracts.

However, typically, when a contract changes, it involves a new dated and initialed or signed amendment page citing the change. In this case, amend page to say the landscape $ for completion is held in escrow and when it is done, escrow money is released. Meaning, buyer is now purchasing the house without the landscaping completed with the money held for it in escrow.

 

[alebrewer]

Maybe this would help those who don't fully understand escrow holdbacks:

B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements (03/01/2023)

selling-guide.fanniemae.com

 

[Dublin ohio]

Did you not hear me the first time ? How would I know, since every contract is different. Appraisers don't write contracts.

However, typically, when a contract changes, it involves a new dated and initialed or signed amendment page citing the change. In this case, amend page to say the landscape $ for completion is held in escrow and when it is done, escrow money is released. Meaning, buyer is now purchasing the house without the landscaping completed with the money held for it in escrow.

Nowhere in the op was there mention of a contract change. The op was an APPRAISAL question. Not a loan closing question. If the lender wants" as is". Then you give them "as is". But it is not the appraiser's responsibility to determine the escrow amount. That is between the lender and builder.

 

[J Grant]

Nowhere in the op was there mention of a contract change. The op was an APPRAISAL question. Not a loan closing question. If the lender wants" as is". Then you give them "as is". But it is not the appraiser's responsibility to determine the escrow amount. That is between the lender and builder.

I answered their appraisal question by relating how the contract change works regarding an escrow hold back since they bought it up as part of their question.

And you and others made the case the appraiser can't do it because of the original contract to build. I never said anything about appraiser determining escrow amount. The 10k was used as an example. Seemed obvious to me since I said statement was an example.

 

[Dublin ohio]

I answered their appraisal question by relating how the contract change works regarding an escrow hold back since they bought it up as part of their question

I must have missed the part in the op that mentioned a contract change. Wait....What! That's right. There was no mention of a contract change.

 

[glenn walker]

Again - what part of the construction contract changes when the lender does an escrow holdback?

Nowhere in the op was there mention of a contract change. The op was an APPRAISAL question. Not a loan closing question. If the lender wants" as is". Then you give them "as is". But it is not the appraiser's responsibility to determine the escrow amount. That is between the lender and builder.

To the original Poster-Just check the "As Is" Box and be done-- you don't need to provide any cost estimates or cost to cures the money held back in escrow will cover the landscaping. In fact the builder will mark it up by as much as 40% to 50% and up to 100% if he can get away with it because like upgraded flooring or other things this is a extra profit center type item and he will be chomping at the bit to get it landscaped as soon as posisable so he can get his $20,000 on a $10,000 landscaping job. : ) LMAO

 

[J Grant]

I must have missed the part in the op that mentioned a contract change. Wait....What! That's right. There was no mention of a contract change.

OMG- DOH that is why I told the OP escrow $ represents a contract change.
Unreal- what a waste of time, no wonder folks drop out of this board pointless idiotic challenges to responses trying to help a poster.

 

[Dublin ohio]

OMG- DOH that is why I told the OP escrow $ represents a contract change.
Unreal how do you manage to reason about an assignment -

Then they should have provided an addendum to the contract. Is the appraiser to assume that it involves a contract change? Or is it really a change to the funding conditions of the loan.