Nuggets from the "Appraisal Jungle" with R.E. Attorney, Nancy Campiglia
I just recently attended a continuing ed class and one of the most valuable topics of discussion was about appraisals and inspections and our liabilities as Realtors. I have included some of the helpful hints that Nancy provided:
A. Realtors should not talk with OR provide any data to an Appraiser until after the appraisal is done, and only if there are concerns about the appraisal value.
B. If a Realtor attempts to "sway" an Appraiser's value for the property on a government-backed loan, the Realtor can be liable for ***criminal and civil penalties! ***
C. If you want a local appraiser, she recommends including a term within the Contract that reads, "Per USPAP, Appraiser should be competent in and have knowledge of the location in which he is appraising."
D. She recommends including a term in Contract that reads, "Buyer does not have to purchase property if it does not appraise at or above the sales price. If this occurs, Buyer is entitled to an immediate refund of escrow deposit."
E. Always use an actual date for the "Closing Date" on the Contract. Without a date, there is NO legal Contract. The only exception for this is if an Addendum or Counter Offer form specify an actual date.
F. In the Sales Contract, instead of using, "As per MLS" on line #11, she recommends you use, "See Exhibit ‘A'," and include a printed copy of MLS with, "Exhibit A" written at the top of it.
G. Agents should never be present for an Inspection, except to open the home and lock it up afterwards. If the Agent becomes knowledgeable of material facts about the property, the Agent is required to convey them to the Buyer.
We as Realtors some times forget that real estate is a serious business and should not be taken lightly. I hope that you all appreciate some of the tips that Nancy offered so that we can continue to help our clients and stay out of trouble at the same time. I know that I do.