Appraisal Institute Creates Model Engagement Contracts
January 16, 2007 08:00 AM
CHICAGO (Jan. 16, 2007) – Clients of real estate appraisal services are set to benefit from the Appraisal Institute's introduction of model agreements for services, which are presently being made available to members of the Appraisal Institute. Sample agreements for services - both long and short forms along with supplementary and explanatory materials - have been developed to assist Appraisal Institute members and their clients in drafting their own agreements or evaluating those provided by others.
"A written agreement serves to clarify the terms of the assignment and provides written evidence of both the client and appraiser's agreement to those terms," said Lance Coyle, MAI, lead member on the Model Engagements project team. "It also may serve in the resolution of disputes arising from the services provided."
Developed by a joint member/staff project team, these model engagement contracts provide examples of language that can be used for appraisal assignments. They can also be easily edited to accommodate appraisal review, appraisal consulting or other types of assignments. As with any contractual arrangements, however, users are urged to seek their own legal counsel for guidance regarding specific situations.
"Although neither the Uniform Standards of Professional Appraisal Practice nor the Appraisal Institute's Code of Professional Ethics requires written engagement contracts, using one to set out the details of an assignment is a sound business practice," explained Stephanie Coleman, MAI, SRA, the Appraisal Institute's Director of Ethics and Standards Counseling.
As the leading organization for professional real estate appraisers, the Appraisal Institute represents more than 21,000 members worldwide. Members benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA and SRA designations. Appraisal Institute members adhere to a strictly enforced Code of Professional Ethics and Standards of Professional Appraisal Practice. For more information regarding the Appraisal Institute, please visit www.appraisalinstitute.org