- AVAILABILITY OF CURRENT AGREEMENT OF SALE
Response: Standards Rule 1-5(a) requires an appraiser developing a real property appraisal, if such information is available to the appraiser in the normal course of business, to: analyze all agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal.
The normal course of business for an appraiser when the property is known to be the subject of a pending transaction is to ask the client for the terms of the agreement. If this request is denied, then the appraiser should make reasonable attempts to obtain this information from other sources through legal means commonly available to and practiced by the appraiser’s peers. Standards Rule 2-2(a)(viii) and (b)(viii) also includes the requirement that:
If such information is unobtainable, a statement on the efforts undertaken by the appraiser to obtain the information is required. If such information is irrelevant, a statement acknowledging the existence of the information and citing its lack of relevance is required.
Refer to Standards Rules 2-2(a)(viii) and (b)(viii) for related reporting requirements, and to Advisory Opinion 1, Sales History for additional information.
FAQ 2018-2019 Edition
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