Reviewing Sales Contract

[Pamela Crowley (Florida)]

Thank you, Rich! I agree that it's a very important part of the appraisal and pressure needs to be placed on those that should provide it.

I do what Phil Rice wrote and if I don't get everything, I tell within the report what I did to obtain the contract and/or addendums with closing costs terms and that the contract and terms may contain items that would impact the Appraisal.

 

[Judy Whitehead (Florida)]

I'm just curious - why should someone be congraulated on being a staff appraiser? Did I miss something during the last six months? These are choices that anyone must make - whether to work for yourself or someone else.

I know that I digress - we do everything in the world to get a copy of the sales contract. If for some reason we don't - which is rare - since we usually refuse to submit the appraisal without it - then we simply state all of the disclaimers - AKA we don't know nothing no how - and have only been TOLD this by the lender.

 

[Richard Carlsen]

One of the most successful methods of obtaining the contract is to call the lender (or Realtor, if the lender does not have a copy) and to state that you want to set the appointment for your property viewing but don't have the contract.

This is all well and good but if a contract is not forthcoming and you do not produce a report, you watch your business eventually go to your competitors who will write the report sans contract and collect the fee.

I suspect that Fannie would love to have the appraiser provide the mortgage report, credit report, well and septic inspection also if they could get away with it. In due course, that may become an additional requirement.

I may be on shaky grounds if every single one of my peers in my market area manage to get contracts and I don't. It would surprise me if this were true. I base this on our very good relationship with our clients. The expectations of the market participants on the other hand leave something to hang our hat on. Fannie may want the contracts analyzed but if the lenders, who are our clients and sellers to Fannie, are not willing to provide a copy, it seems that the onus is on Fannie to require and enforce that they provide full copies of the report.

Point in fact is that we rarely do not have a copy of the contract. However, I will not stop the appraisal process in a sale if one is not provided. I will explain that one was not provided and that I cannot comment on something that I do not have.

 

[jay trotta]

Standards are great; USPAP is even greater; FNMA has summed it all up; and the Lenders are the most forthcomming folk I know.

Back in the day we used to note; "Buyers are liars and Sellers are worse" *

Ifn you take all the mumbo jumbo out of the equation, the bottom line is; with all the sale data you have is the subject property worth XYZ dollars and can you support that :question: If you see an increase in "concessions" thruought your market area is this going to impact the subject if it has offered concession's :question: Cars / Cash whatever........... I have yet to see a "Lone" property offer concessions, it is generally a "Trend" for an area; we are suppose to watch "market trends" are we not (USPAP-blah, blah, blah).

For simplicity, I'm in agreement with Richard on this in regards to most of his input

If we are required to follow all the Rules, then one of the most important Rules is the obligation of the "Lender" to provide all the information on the subject property they have - FNMA (you find it if your curious). Now, when was the last time any of you recieved ALL the information the Lender has on a property :question: Now with the amount of technology available today, "Lenders" have acces to more data (right or wrong) than we ever will (they have deeper pockets) - so where's their obligation to provide data being sent :question:

h34r:

 

[Jim ATherton]

Back in the old days when I was a lender we had a regultory rule, and I don't believe it has been rescinded. (loan amount is to be based on the sales price or appraised value, whichever is less). A sales contract is a necessary part of the closing. In this hurry up scenerio, it seems lenders want to proceed without it!

Maybe we should make the contract and analysis a contingent condition, like a repair requirement.? :yellowblack:

 

[Robert Anderson]

Originally posted by leelansford@Nov 25 2004, 09:00 PM
Some party to this transaction has a copy of the contract of sale.

On occasion, I am told that there is not a sales contract. This typically occurs when the transaction is a FSBO. In these instances, the buyer and seller have executed escrow instructions, and I obtain a copy of these instead.

Bob Anderson

 

[Anthem]

Thanks to everyone, Especially Phil, you really solved this for me.

Preston

 

[Eric Bishard]

"Subject reportedly under contract of sale for $???,???. No P.A. provided to the appraiser. Appraiser took the following actions to obtain the P.A.: Appraiser contacted all parties involved in the transaction and requested a copy of the P.A. complete with sales prices, concessions if any and signatures of both parties in the transaction. P.A. was not recieved within the time allotted by lender to complete appraisal (3 days). Appraiser unable to comment on price and terms of the sale."

How about this?