VA Mandated Escape Clause

[Ariba]

How are you handling the VA Mandated Escape Clause when it is not included in the purchase contract? According to the VA lenders' guidelines and for the loan to be guaranteed by VA, the lender must ensure the Amendatory/Escape Clause is signed by the seller and buyer and included with the transactional documents. Will you proceed with the appraisal if no signed Escape Clause provided?

 

[Zoe]

Real Estate, Homes, Land & Commercial | Southern US Region: AL, AR, FL, GA, KY, MS, MO, OK, TN | Crye-Leike (crye-leike.com)


They are one of largest residential brokers in USA. They have appraisal contingency in all their sales contracts. They have appraisal contingency on commercial contracts too. I am not sure if that is what you are referring to........And most small brokers have followed suit.

 

[Zoe]

How are you handling the VA Mandated Escape Clause when it is not included in the purchase contract? According to the VA lenders' guidelines and for the loan to be guaranteed by VA, the lender must ensure the Amendatory/Escape Clause is signed by the seller and buyer and included with the transactional documents. Will you proceed with the appraisal if no signed Escape Clause provided?

Can you post it please?

 

[Zoe]

How are you handling the VA Mandated Escape Clause when it is not included in the purchase contract? According to the VA lenders' guidelines and for the loan to be guaranteed by VA, the lender must ensure the Amendatory/Escape Clause is signed by the seller and buyer and included with the transactional documents. Will you proceed with the appraisal if no signed Escape Clause provided?

That seems more like a SAR or RLC worry to me in some ways. You have bigger fish to fry.

 

[Tim Hicks (Texas)]

I haven't heard much about the escape clause in the past few months.

 

[Hondo]

We don't need to address the escape clause, this was sent Sep 5, 2019:

• Chapter 10, Topic 3 has been revised to remove the requirement for appraisers to address the VA-mandated sales contract “Escape Clause” in the appraisal report.

 

[Ariba]

We don't need to address the escape clause, this was sent Sep 5, 2019:

• Chapter 10, Topic 3 has been revised to remove the requirement for appraisers to address the VA-mandated sales contract “Escape Clause” in the appraisal report.

Please provide VA Circular Number or link revising Chapter 10 3b.

 

[WarEagleFL]

Please provide VA Circular Number or link revising Chapter 10 3b.

The current chapter 10 can be found here: https://www.benefits.VA.gov/warms/pam26_7.asp

The requirement has been removed. I verified this by looking at an older copy that I had from when the chapter was first updated.

Also, here is a prior thread that includes verification from the AVO of the St. Petersburg RLC

https://appraisersforum.com/forums/threads/VA-escape-clause.223862/page-3

 

[Jerry Bone Jr]

How are you handling the VA Mandated Escape Clause when it is not included in the purchase contract? According to the VA lenders' guidelines and for the loan to be guaranteed by VA, the lender must ensure the Amendatory/Escape Clause is signed by the seller and buyer and included with the transactional documents. Will you proceed with the appraisal if no signed Escape Clause provided?

For a hot minute, the VA Appraiser was to state if the VA Escape Clause was or was not included in the pending sale agreement. Today the responsibility is on the SAR.

 

[Zoe]

For a hot minute, the VA Appraiser was to state if the VA Escape Clause was or was not included in the pending sale agreement. Today the responsibility is on the SAR.

Yeah, that's a side note. It should have absolutely no impact on opinion of market value to the appraiser. Different animals.