Purchase without a contract

[dm97]

I received an order recently that stated it was a purchase. I requested the fully executed contract but have not received it yet. They said they do not have it yet but they want me to submit the appraisal report without the contract data. Does this violate rules we have to follow as an appraiser?

 

[Mark K]

No.

 

[Tom D]

Just state you were unable to get a copy. It does say did/did not analyze the agreement 'check box' on page 1. So the report gives you the option of checking 'did not'. You are however making an assumption that the sale price they gave you is the one on the agreement. Might comment on that.

Obviously, you will have to update it when you do get it eventually. Did you call the selling or buying agent and ask them for a copy. They either have it or an interesting why not comment.

 

[DWiley]

 

[Vermonter]

Zoe must be sleeping in. Brace yourself for a bunch of consecutive replies on this topic

 

[Tom4value]

I received an order recently that stated it was a purchase. I requested the fully executed contract but have not received it yet. They said they do not have it yet but they want me to submit the appraisal report without the contract data. Does this violate rules we have to follow as an appraiser?

According to USPAP, no. However, you DO need to summarize the steps you took to try to obtain one. I.e., “The appraiser contacted the client and brokers involved in the transaction and was unsuccessful in obtaining one”. Simply stating, “unavailable” will not suffice.

That being said, it sounds sketchy to me. I worked in lending. You couldn’t order an appraisal without a contract. Here in MA, the process starts with a signed “offer to purchase”. It is a simple contract stating the price and terms and submitted with a deposit as good faith. However, it is non-binding. There are multiple reasons, including a bad home inspection or financing issues that could nullify the agreement and the buyer gets their deposit back. It is the “fully executed purchase and sale agreement” that nails everything down and here in MA, that can be a couple of weeks into the process. Is that what you are looking for?

In any case, ask the listing broker for a copy. They will either have it or tell you it is not really a pending sale.

 

[Surf Cat]

And what's the name of this AMC? How do they know of the agreed upon purchase price? Phhhfftt. Proceed as others above have stated. Make sure to note who told you what.....make sure your opinion of value is solid, as you very well may receive a request to change the value based on the now receive purchase contract......hold firm.

 

[dm97]

Thank you very much for your response. Yes, I agree pretty sketchy! AMC is Lender Allies

 

[Terrel L. Shields]

A lot of private transactions are not written. Some banks simply require the parties to sign simple offers and acceptances. I get one occasionally and invariably they are one-page items.

 

[sputnam]

I received an order recently that stated it was a purchase. I requested the fully executed contract but have not received it yet. They said they do not have it yet but they want me to submit the appraisal report without the contract data. Does this violate rules we have to follow as an appraiser?

No. The appraiser has to review and analyze the purchase contract if it is reasonable available in the normal course of business. If you don't have it and can't get it, you submit the report and you make comments about not having been provided with a copy of the purchase contract. Read USPAP and the FAQa and AOs. This... and a lot of other answers... is in there.