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Reviewing The Contract For Sale And Purchase

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J in Florida

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I have not sent the appraisal to the lender, as they have not yet provided me with the contract. I get an email from LO today, stating, and I quote:

"I cannot understand why the other appraisers have not held on the the appraisal until they have received a contract--I have 4 other appraisers that I use....If you absolutely cannot give me an appraisal for purchase without the contract in hand then you are certainly doing things different than other appraisers in this market"

Now, I think I'm a pretty good appraiser, but I haven't quite mastered the skill of analyzing contracts for sales and purchases without having ever seen it.

You would not even believe the voice mail she left.

Or, maybe I missed the part where we don't have to analyze the contract as part of the appraisal process anymore.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
J,

You're not the only stickler. I too have held a few up to review the purchase contract. What she's hoping is to shame you into being sloppy 'like the supposed 4 other appraisers she works with.'

Instead of spending the time haranging you on the phone, she would have been wiser to get hopping over to the fax machine and get it to you. She's more than likely holding a copy in her hands, albeit half signed...many are too lazy to ever get the final draft w/all sigs and counters, etc.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Call the borrower, explain the USPAP requirement and ask them to please fax a copy of theirs to you.

I have and will continue to do the same thing you are doing. My answer when the tell me "you're the only appraiser...." is that "I keep myself up to date and legal in order to keep my appraisal license. I don't pay much attention to what other appraisers are doing or not doing that could put their license in jeopardy."
 

Tater Salad

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Missouri
Pam, I like that response! :twisted:
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Hey J,

The LO could be correct :D :D and here's my best guess why. The other 4 are VA appraisers and have read the 2003 fee appraiser training guide which states "In conformance with USPAP requirements, you are expected to make a reasonable attempt to obtain the sales contract and disclosure statement(s). Under no circumstances, however, are you to delay completing an appraisal assignment or forwarding the report to the requester because the sales contract or disclosure statement has not been received."

UPSAP? We don't need no stinkin' USPAP when you have stringent, closed appraiser panel requirements like these. :rofl:

Psst.. if it's OK for VA appraisers to do it .....how about us regular guys/gals?????

Ben
 

jeff samolinski

Senior Member
Joined
Apr 18, 2003
This issue has been bothering me lately. I can see what you all are saying but what I do not understand is
the uspoop lingo that says "if available during or as part of the normal course of business" ( I am paraphrasing) What does that mean? To me it could mean insisting that you get it because it is normally available to me from most realtors except for a few hardcases. It could also mean that its ok if you try to obtain a copy as part of your normal course of the business of doing an appraisal but were unable to get it. In that case is it ok to state that you tried and could not obtain a copy as part of the normal course of business? Absent any clarificationfrom the uspoop people I will continue to do the latter, although i think it comes down to the appraiser's preference on how to handle it.

This issue has been debated before in this forum and I believe it came down to soe appraisers require it and others try to get it but if they can't, they state so and go on.
 

hal380

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
Hi Jeff:


Comment on review and analysis of current sale and prior sales:

The appraiser made numerous attempts to obtain a copy of the sales contract and in every case the loan officer has refused to provide this document. As a result the final opinion of value reported herein is subject to revision, up or down, if a subsequent review of the contract yields significant data.

Just my suggestion for inclusion in the comment addendum, and you wouldn't be holding up the appraisal.

Hal
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
In reality, Ben and Jeff and Hal are correct. I like Hal's little paragraph on it. I still will call all involved to try to get a copy of it prior to writing about not being able to obtain from anyone. So far, I've had them try to keep it from me, but always have received a copy from someone.
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
How can you be a number hitter if you don't know what the number is? :eyecrazy:
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
This is not just a USPAP issue, but lenders are also required by FNMA, FHLMC and HUD to provide the appraiser with the contract and also any other necessary information (title report, CC&R's, concessions or personal property included, etc. if available) if needed by the appraiser to complete the analysis.

Hal's paragraph is good ... I wouldn't just include it in the sales analysis comments, but would plaster it in several other key areas like the transmittal letter, etc ...

Btw ... since the appraiser is expected to review the sale agreement in the normal course of business and if its reasonable that the contract would have clauses, agreements, listing of personal property property included in the sale, concessions, etc., if the appraiser did not review the contract or if the contract reviewed was not the "signed/executed" copy ... shouldn't the appraiser be making an "extraordinary assumption" as he/she is assuming the price, terms, conditions, valid agreement etc. and if so, don't we have to state that assumption clearly?

I'll bet that Hal's paragraph labeled as an EO in big bold letters in the transmittal and several other key areas may grab the UW's attention and change a few things ...

For the record, we never do the assignment without the contract. In the past when we've been asked to proceed without one ... after little checking around on the property, etc we have generally found problems that were not disclosed ...
 
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