Purchase Appraisal

[Richard Carlsen]

"Selling price is reported to be $XXXXX. A copy of the purchase agreement was requested from the client but has not been provided. Therefore, the appraiser is unable to comment on either the selling price or terms."

It is the LO's responsibility to provide you with the P.A. Don't get even bother talking to the brokers. If a purchase agreement is not forthcoming, make something like the above statement and go on. It is really no big deal. If they come back later and want you to comment on the P.A. and provide you with a copy, do it and consider sending them a $25 bill for time.

 

[Scott FL]

From Fannies Guidelines

XI, 102.02: Unacceptable Appraisal Practices (01/29/02)

Failure to analyze and report any current agreement of sale, option, or listing of the subject property and the prior sales of the subject property and the comparable sales;

If you do not have the contract, how can you analyze it?

If you fail to analyze the contract for your client, XYZ Mortgage Co and in turn FannieMae or FreddieMac, isn't that then a USPAP violation?

 

[Mike Garrett RAA]

Exactly!

 

[sueinprescott]

one of my lenders requires that I get the sales contract from the listing agent direct, that way if a page is omitted (which does happen) or purposely left out, the listing agent would be help responsible.

 

[Richard Carlsen]

Hence my statement, "A copy of the purchase agreement was requested from the client but has not been provided."

We are not compliance police and if we ask for something and it is not given, we have no power to force compliance.

Just state the facts simply in the report and go on with life.............

 

[jeff samolinski]

Rich:

I agree. There have been times when no one would give me a copy. What was I supposed to do, threaten them, refuse to do appraisal, petition the courts. USPAP does not require you to obtain the contract if it is not available to the appraiser. If copy not provided but verbal is given then state so, if no verbal and no copy then state what is known if anything.

 

[John SRA]

For the "USPAP angle" on this refer to the FAQ book. Question 102 in the 2003 edition.

If a contract is not available in the normal course of business, you need only comment on your efforts to obtain the contract. Richard's comment is a good one.

JC

 

[Terrel L. Shields]

Strangest one I have done I am working on. It is a sale, but there is no contract. The Realtor owns the land. He and a partner are building 10 poultry houses and a dwelling on the land. The construction contract is $1.5 million. They are going to divvy up the debt load as an LLP. I suspect that they will use the appraisal as a basis for determining how much the total sales price is to the LLP....wierder and wierder.

 

[moecraig]

If i don't get a signed sales contract from the lender, when I call the realtor to schedule the appointment, I ask for a copy of the signed contract to expedite closing on their listing---Works like a charm & they always have one with them....

 

[bradellis]

Bill Potts,

Sorry, but you need to read SR 1-5. It contains binding requirements from which departure is NOT permitted. That standard requires the analysis- WHEN AVAILABLE IN THE NORMAL COURSE OF BUSINESS- of all agreements of sale, options, or LISTINGS of the subject property current as of the effective date of the appraisal...

If you ignore a current listing (and that ought to be openly and easily available to you in the normal course of business- ESPECIALLY if the owner tells you there IS one and to ignore it), you have violated USPAP.

You might also want to read SMT-10 E6 if the appraisal involves a FRT.

I do not know of anyplace where that is legal.

Brad Ellis, IFA, RAA