Appraisal Engagement Letter Sample
Real estate investment is booming all over the world due to its ever growing rates that are touching the sky. Investing in this sector is the most lucrative way to double your money in a matter of few years. As the population all over the world is growing rapidly, so is the demand for properties. It is therefore, necessary for an individual or a company to get their property appraised by an independent property appraiser. Appraisal of a property will help you to determine the real value and its worth, which can be useful in concluding the selling and buying price.
This appraisal is done by a licensed real estate appraiser. When you approach them, you are requested to fill an inquiry form that includes all your personal information and type of valuation service required by you. When the form is filled, an appraisal engagement letter is written by the appraiser that gives the details of your assignment. The letter includes the name of the client and the address of the property to be appraised. It includes the format and purpose of the appraisal report. Its fees structure and when and how they accept the payment.
Appraisal Engagement Letter Sample
Clean and Clear Real Property Services, Inc.
112 NE Real Street, New York, NY 12045
Telephone: (850) XXX-4205
Fax: (850) XXX-4586
Date: 20 June, 2011
Tony Hayden, Director
North Wing, 60th Street
New York, Ny 12040
Re: Appraisal of commercial property
In consideration of your request, we are pleased to propose the following agreement in appraising the commercial property located at North Wing, 60th Street, New York, NY 12040.
The appraisal service will be carried out as follows:
- The appraisal report will be submitted to you in writing. Though we will be paid for the report, we request you to use it exclusively for your own purpose. The report will help you save some money on insurance, and it will give you a fair idea about the property's market rate. In case, you need to refer the report to some other party, please inform us in writing before doing so as it contains all confidential information.
- The intention in appraising the property is to know its correct market value, and it will be valued in accordance with the current prevailing market rate as of 31st May, 2011. If you have different understanding about the market value, it is your responsibility to let us know the correct market value definition.
- We follow the Uniform Standards of Professional Appraisal Practice (USPAP) in appraising our client's property. To avoid any misunderstanding, we are attaching a statement copy that describes our terms and conditions and Appraiser's Certificate which is given along with the appraisal report. Read and return the copy to us with your signature attested as your approval.
- You are supposed to provide us the following information so that we can complete the appraisal on time: purpose of appraisal, which will be using the report, address and legal description of the property along with the necessary documentation. A completion date of appraisal will be given to you once we received all the documents from you.
- The appraisal service fee will be $XXXX.00. This fee is exclusive of all the other expenses that will be incurred in the appraisal development process. You will receive a separate bill of these expenses at the time of submitting the report. Bills are subject to immediate payment.
- $XXX.00 should be paid as a retainer amount to us at the time of confirming the appraisal service.
Our aim is to provide an unbiased valuation of your property. However, we are not responsible for any type of claim or damage, in case the property is not sold as per the value appraised by us.
The appraisal service will begin once we receive your approval and the retainer amount. If you need any answer regarding the content of this letter or the attachments, feel free to contact us at our office number.
For Clean and Clear Real Property Services, Inc.
This appraisal engagement letter sample is written for appraising a property. You can use this sample letter as a guideline to write for any residential, agricultural, and special-purpose property. However, as a precautionary measure, show it to your lawyer and modify it as per their suggestions.