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Question Regarding Page 1 Of URAR Contract Section. Please Help!

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buyitnow

Freshman Member
Joined
Jan 31, 2010
Professional Status
Appraiser Trainee
State
Kansas
I have reviewed prior threads regarding this issue and still have concerns. I completed an assignment with a contract signed. by both the buyer and seller with an effective contract date of 01/09/2017. I was then provided an Amendment to the base contract changing the purchase price dated 01/20/2017, which was also signed by both the buyer and seller. The effective date of the Appraisal was 01/20/2017. I completed the assignment and entered the revised purchase price from the amendment and 01/20/2017 as the contract date on Page 1 of the URAR.

The lender has requested the contract date blank to be changed to the original contract date of 01/09/2017 since this was the effective contract date and they believe the Amendment did not change this date.

My defense is that Fannie Mae section B4-1.3-02: Subject and Contract Section of the Appraisal states, "Contract price must be the same as the sales price for the subject property in the Sales Comparison Approach section", which in my opinion refers to the date when all parties have reached a final agreement. Therefore, the contract date would be when all parties to the contract have signed the last agreement or addenda to the contract. Riders or addenda are special attachments (separate sheets) that become part of the contract. Therefore the date would be 01/20/2017, date of the amended contract.

I did make note of the original contract price and date when discussing and analyzing the contract.

Would it be acceptable to enter the amended price in the price blank and the original contract date in the date blank and then explain?

Please advise me on which date that you would enter in the contract date blank, and any support that you may have.?
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
This is a hill not worth dying on.

Although I personally believe that a so-called ameded contract is actually a new contract tht replaced the older, un-amended contract based on my legal training (I have a law degree) some other people don't see it that way and as long as you disclose in the the contract analysis section of the appraisal report that "the contract was amended on 1/20/2017 changing the purchase price to $zzz,zzz", then reporting the original contract date of 1/9/17 in page 1 is not misleading to the intended user.
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
This is a hill not worth dying on

Exactly. Six of one. Half a dozen of the other. Have always used the date the final addendum was signed. Never questioned about it in 23 years. Most of my clients want the wording that I analyzed a "fully executed" contract. So the word executed comes into play. Agree with Timd. That as long as you clearly explain. It should not make a difference.
 

Kitarkus

Junior Member
Joined
Nov 15, 2006
Professional Status
Certified Residential Appraiser
State
Kansas
I have reviewed prior threads regarding this issue and still have concerns. I completed an assignment with a contract signed. by both the buyer and seller with an effective contract date of 01/09/2017. I was then provided an Amendment to the base contract changing the purchase price dated 01/20/2017, which was also signed by both the buyer and seller. The effective date of the Appraisal was 01/20/2017. I completed the assignment and entered the revised purchase price from the amendment and 01/20/2017 as the contract date on Page 1 of the URAR.

The lender has requested the contract date blank to be changed to the original contract date of 01/09/2017 since this was the effective contract date and they believe the Amendment did not change this date.

My defense is that Fannie Mae section B4-1.3-02: Subject and Contract Section of the Appraisal states, "Contract price must be the same as the sales price for the subject property in the Sales Comparison Approach section", which in my opinion refers to the date when all parties have reached a final agreement. Therefore, the contract date would be when all parties to the contract have signed the last agreement or addenda to the contract. Riders or addenda are special attachments (separate sheets) that become part of the contract. Therefore the date would be 01/20/2017, date of the amended contract.

I did make note of the original contract price and date when discussing and analyzing the contract.

Would it be acceptable to enter the amended price in the price blank and the original contract date in the date blank and then explain?

Please advise me on which date that you would enter in the contract date blank, and any support that you may have.?


There is certainly some gray area here....so no matter what you do...explain it explain it explain it....and you will not be wrong.

IMO...the Contract date is the date that both parties came into an executed sales agreement to purchase the property. This is in most all cases the day that either (1) a Sales Agreement/Contract was signed or (2) the date that a Counteroffer was signed. Amendments and Resolutions FOLLOW the contract/counteroffer date....and serve to amend or revise some of the CONTRACT terms.....but nothing changes the date that the two parties originally signed the Sales Agreement/Contract/Counteroffer. The CONTRACT date remains the date that parties formed their original agreement. Additionally, the original contract/counteroffer holds the predominant language which is the sales agreement. Minor later changes to this basic agreement (price, close date, concessions, personal property etc) do not constitute a new contract...or a new contract date.

I leave this date static no matter what changes come LATER after the CONTRACT was signed. Any changes to the original contract/agreement via Amendments or Resolutions may change the price, concessions, or other terms.....but these will never change the contract date. Even God cannot change the date that the two parties initially agreed to the terms within any given transaction. This 'beginning' date also serves you and any Report reader to better understand when the parties first came to an agreement to transact.....regardless of financial or transactional changes that came later through the processes
 
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Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I will give you this. An amendment accepted by both parties changes the contract date, the latest being the current date of contract.

That being said, as a previous poster said, don't die on this hill. Make the change, then in the addenda section put a dated comment explaining the change and the varying dates.
 

Kitarkus

Junior Member
Joined
Nov 15, 2006
Professional Status
Certified Residential Appraiser
State
Kansas
I will give you this. An amendment accepted by both parties changes the contract date, the latest being the current date of contract.

That being said, as a previous poster said, don't die on this hill. Make the change, then in the addenda section put a dated comment explaining the change and the varying dates.

Thanks for giving me that. I'm not taking it. An Amendment is not a Contract...but rather....get ready....an Amendment to a Contract. An Amendment has insufficient language to constitute (in most cases) a Contract..and nearly always refers to the original Contract ...which it must of course....in order for an Amendment to amend something...it must have a Contract to refer to.

I respectfully disagree. Like I said...this is a gray area and the OP will not be punished either way so long as he/she explains explains explains.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Remember some goofy attorney saying " A" new contract is not the same as an amended contract and
If you "add" to the original contract on XXXX via an-addendum, you still have the "original contract date" of XXXX with an amendment . I you would note in your comments the orig, date and discuss the dates/content of any addenda/amendments subsequent to the orig. date.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
A contract requires execution to be a contract. So all of the prior "contracts" are not contracts as they have not been executed. They are agreements. Until the agreements are executed, there is no execution of the contracts. The last and final contract that is executed is the one and only contract that really matters.
 

Kitarkus

Junior Member
Joined
Nov 15, 2006
Professional Status
Certified Residential Appraiser
State
Kansas
A contract requires execution to be a contract. So all of the prior "contracts" are not contracts as they have not been executed. They are agreements. Until the agreements are executed, there is no execution of the contracts. The last and final contract that is executed is the one and only contract that really matters.

Yes...and this is usually the 16pg +/- Sales Agreement.....or the 4 pg. +/- Counteroffer. Amendments and Resolutions may change some of the terms within the original Contract or Counteroffer....but the executed Contract or Counteroffer comprise the basic Sales Contract and imo effective date. Amendments and Resolutions are not Contracts...if they were....they wouldn't call them Amendments and Resolutions :)

Remember...this is why buyers/sellers must initalize all pages of the Contract (but without final signatures) even if the Counteroffer is executed....because the Contract contained much of the agreed upon language and terms that the parties agree upon. The Counteroffer is executed ... but typically changes only minor terms such as price, close date, etc.

Just my 2 cents....and respectfully of course.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
and you have a point?
 
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