SAMPLE ENGAGEMENT LETTER
DAVID BOND & ASSOCIATES
Real Estate Appraisal, Brokerage, Consultants
Telephone: (213) 268-BOND (2663)
Thank you for this opportunity to submit our proposal from David Bond and Associates to complete the real estate appraisal of ______________________________________
The appraisal will include the following valuation scenario:
ESTIMATE THE VALUE OF THE SUBJECT PROPERTY AND PROVIDE A REPORT.
The Client for this assignment will be determined prior to the engagement of appraisal services. The report will be a restricted use appraisal and intended only for the client to be furnished prior to the engagement for appraisal services.
This assignment would involve the inspection of the subject property and gathering appropriate market data that would be used in this valuation analysis. A narrative report will be produced for this assignment, and will include the following information: letter of transmittal; summary of important facts and conclusions; identification of the client; the intended use of this assignment; the effective date of value; scope of this assignment; definition of value; macro and micro market analysis; subject property analysis; highest and best use summary; a valuation analysis that will employ appropriate valuation techniques and methods; definitions of pertinent items; subject pictures; photographs of comparable properties used in this valuation analysis; statement of general assumptions; limiting conditions; the Appraiser’s Certification; and all other necessary analysis required pursuant to the current Uniform Standards of Professional Appraisal Practice (“USPAP”).
This assignment will be completed in accordance with the appraisal requirements in USPAP as written and published by the Appraisal Foundation and regulated by the State of California Office of Real Estate Appraisers (“OREA”). The appraiser does not have any current or prospective interest in the subject property or parties involved. The appraiser has not performed any services related to the subject property within the three-year period preceding acceptance of this assignment as appraiser or in any other capacity.
If you or your firm have any additional assignment requirements, please advise before executing this letter of engagement. Please note our liability for this assignment is limited to the amount of the fee paid to the appraiser. We are responsible only to our Client when making any corrections, additions or deletions. The appraisal is not intended to be used for court purposes. If the client desires the appraisal for court purposes, additional fees will apply.
We will require certain items to complete the assignment. If any item enumerated below is not readily available to you, we may make extraordinary assumptions or hypothetical conditions in order to complete the assignment expeditiously and cost effectively.
- A signed acceptance of this letter of engagement and a check in the amount of the total cost payable to David Bond.
- Title Report, if readily available and all underlying documents otherwise hypothetical and extraordinary assumptions may apply.
- All available information regarding any recent purchase of the property.
- Any Phase I reports, soils reports or other available property inspection reports.
- Any listing or pending sale information and contract.
- Any available site surveys.
- Any available zoning or entitlement reports.
- As-built plans for the property shall be provided by the client and relied upon the appraiser for purposes of this assignment. If no plans are readily available, additional fees will apply for field measurements and sketches.
- Copy of any leases related to the subject property.
- If the subject property is a leased fee estate, all income and expense data for two (2) years.
If we receive authorization to proceed and the items requested within the next 5 business days we anticipate completing this assignment within 2-4 weeks. In addition, we will need a contact person for access for inspections and questions. Any delay in the receipt of the items requested may result in a delay in the estimated completion date.
Our fee for this assignment will be $____________ for the property. The full fee is needed at the beginning of this assignment. We will provide two original copies of the final report to your office.
Please call if you have any questions or need further information. If these terms are acceptable and you desire our services, please sign below and return with the retainer.
Accepted and signed by: _________________________________
Printed Name and Title: __________________________________
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