Assumptions and Limiting Conditions
Acceptance and Applicability
These Terms and Conditions for Appraisal Services and Reports ("Terms and Conditions") shall apply to any appraisal reports, contracts, or orders into which they are incorporated. In addition, concerning any appraisal report, any use of or reliance on the appraisal by any party, regardless of whether the use or reliance is authorized or known by Appraiser, constitutes acceptance of these Terms and Conditions and acceptance of all other appraisal statements, limiting conditions and assumptions stated in the appraisal report. An Appraisal Services Agreement may contain different provisions than stated in this document. Said different provisions shall only apply between Client and Appraiser/Firm unless the Appraisal Services Agreement expressly states otherwise. Acceptance of delivery or the payment for services rendered constitutes acceptance of this condition and all other contingent conditions set forth herein.
Definitions in these Terms and Conditions
Appraisal Services Agreement means any written agreement with Client for the performance of the appraisal services by Appraiser, including any agreement entered into electronically or through a web portal;
Client means a party identified expressly as a client in an Appraisal Services Agreement and also any party identified expressly as a client by the Appraiser in an appraisal report;
Appraiser means the appraiser(s) performing part or all of the appraisal services and/or signing an appraisal report, and
Firm means any business entity employing the Appraiser or of which the Appraiser is a partner, owner, shareholder, member, officer, director, or independent contractor and includes the other employees, partners, owners, shareholders, members, officers, directors or independent contractors of any such entity.
Pre-Appraisal Scope Development Terms of Service
Purpose and Scope of Service
The scope development services (“Scope Development Services”) provided by Appraiser or Firm are intended solely to assist the Client in determining whether a formal appraisal assignment is appropriate and, if so, to help define the appropriate scope of work for such an assignment. These services may include reviewing property-related information, discussing intended use and relevant reporting requirements, identifying potential complexities, and advising on whether an appraisal is necessary. Scope Development Services are not an appraisal or valuation service and do not constitute a professional opinion of value.
Not a Substitute for an Appraisal
The Scope Development Services provided are preliminary in nature and do not comply with the Uniform Standards of Professional Appraisal Practice (USPAP). These services are not a substitute for a formal appraisal and should not be relied upon for any decision-making purposes, including but not limited to financing, litigation, taxation, accounting, or other regulatory matters. The Appraiser does not render an opinion of value or estimate of market value as part of Scope Development Services.
No Reliance; No Intended Use
The Client acknowledges and agrees that Scope Development Services are general in nature and not intended for reliance by the Client or any third party for any specific transaction or use. No user other than the Client may rely on these services, and no intended use is associated with this service. Any reliance or use shall be at the sole risk of the relying party.
Limitation of Liability
To the fullest extent permitted by applicable law, the maximum monetary liability of the Appraiser or Firm arising out of or related to the Scope Development Services shall be limited to the total fees charged for such services. The Appraiser and Firm shall not be liable for any indirect, incidental, special, or consequential damages arising from the use or interpretation of Scope Development Services.
Acceptance of Terms
Use of Scope Development Services, including acceptance of delivery or payment for such services, constitutes acceptance of these Terms and Conditions. These Terms and Conditions shall apply notwithstanding the absence of a separate signed agreement.
Appraisal Terms and Conditions
Intended Users
The Appraiser will identify one or more "intended users" of the appraisal in the report, either by name or type of user. The purpose of this identification is for the Appraiser to determine the appropriate reporting of the appraisal clearly and understandably to the identified intended user(s). It is not an acknowledgment by the Appraiser that the Appraiser knows or expects a party to use or rely on the appraisal. Neither the Appraiser nor the Firm is responsible to parties not identified as intended users or for uses not identified as intended uses.
Appraiser Independence
As required by law and professional standards, Appraiser's appraisal performance is independent, impartial, and objective. Accordingly, the Appraiser cannot agree to provide a value opinion contingent on a predetermined amount and cannot ensure that the opinion of value will serve to facilitate any specific objective of Client or others or advance any particular cause.
Unauthorized Use or Publication
No part of the appraisal report or the Appraiser's opinions or conclusions may be published or used in any advertising materials, property listings, public relations material, social media/blog posts, investment offerings or prospectuses, or securities filings or statements without the Appraiser's prior written authorization. Any party who publishes or uses the report or the Appraiser's work product without such authorization or who provides the report or the Appraiser's work product for such unauthorized use or publication agrees to indemnify and hold the Appraiser and the Firm harmless from and against all damages, liabilities, losses, causes of actions, expenses, claims, and costs, including attorneys' fees, incurred in the investigation and/or defense of any claim arising from or in any way connected to the unauthorized use or publication.
No Third-Party Beneficiaries of the Appraisal Services
Unless identified expressly in the agreement, there are no third-party beneficiaries of any Appraisal Services Agreement about the appraisal. Under such agreement, no other person or entity shall have any right, benefit, or interest. Identifying a party as an intended user of the appraisal does not mean that the party is a third-party beneficiary of the Appraisal Services Agreement.
Limitations of Liability and Assignment of Claims
Professional standards for the performance of real estate appraisals require that appraisers perform their services independently, impartially, and objectively. Clients and other users of appraisals often have separate legal or regulatory obligations imposed on them in relation to the appraisal process. The provisions of this section are designed to assure that an appraiser can render appraisal services in compliance with professional standards for reasonable compensation and to assure that clients and users can comply freely with their own professional and legal obligations. If any conditions are not appropriate for a particular assignment, they may be negotiated, but the modification must be in writing and signed by the parties subject to the modification.
Limitations of Liability
To the fullest extent permitted by applicable law, the maximum monetary liability of the Appraiser, Firm, or the Client to one another or any third party (regardless of whether such party's claimed use or reliance on the appraisal was authorized by the Appraiser) for any claims or causes of action relating to the appraisal or the Appraisal Services Agreement shall be limited to the higher of $25,000 or the total fees and costs charged by the Appraiser for the services that are the subject of the claim(s) or causes of action. This limitation of liability extends to all types of claims and causes of action, whether in contract or tort, but excludes: (i) claims/causes of action for intentionally fraudulent or criminal conduct, intentionally caused injury, or unauthorized use or publication of the appraisal or the Appraiser's work product or (ii) claims/causes of action by the Appraiser or Firm for the collection of unpaid compensation for the appraisal or other services (for which the maximum recovery shall be the total amount unpaid and owing to the Appraiser, plus applicable interest and late charges).
No Assignment of Claims
Legal claims or causes of action relating to the appraisal or the Appraisal Services Agreement are not assignable, except: (i) as the result of a merger, consolidation, sale, or purchase of a legal entity, (ii) with regard to the collection of a bona fide existing debt for services but then only to the extent of the total compensation for the appraisal plus reasonable interest, or (iii) in the case of an appraisal performed in connection with the origination of a mortgage loan, as part of the transfer or sale of the mortgage before an event of default on the mortgage or note or its legal equivalent.
No Special or Consequential Damages
Neither the Appraiser, Firm, nor the Client shall be liable to one another or to any third party for special or consequential damages, including, without limitation, loss of profits or damages proximately caused by loss of use of any property, regardless of whether arising from negligence or breach of the Appraisal Services Agreement or otherwise, and regardless of whether a party was advised or knew of the possibility of such damages.
Maximum Period for Legal Actions
Unless the period is shorter under applicable law, any legal action or claim relating to the appraisal or the Appraisal Services Agreement shall be filed in court (or in the applicable arbitration tribunal if the parties to the dispute have executed an arbitration agreement) within two (2) years from the date of delivery to the Client of the appraisal report to which the claims or causes of action relate or, in the case of acts or conduct after delivery of the report, two (2) years from the date of the alleged acts or conduct. The period stated in this section shall not be extended by any delay in the discovery or accrual of the underlying claims, causes of action, or damages. The period stated in this section shall apply to all non-criminal claims or causes of action of any type.
Subpoenas and Testimony
If the Appraiser or Firm is compelled by subpoena or another legal or administrative process to provide testimony or produce documents relating to the appraisal or the Appraiser's services, whether in court, deposition, arbitration, or any other proceeding, the party seeking such testimony or documents agrees to compensate the Appraiser or Firm, as applicable, for the reasonable time incurred in connection with preparation for and provision of such testimony and documents at the Appraiser's rates in effect at that time and reimburse reasonable, actual expenses. The Appraiser herein, because of this appraisal, shall not be required to give testimony or attendance in court or at any governmental hearing concerning the property in question, except as agreed upon at least 30 days before such date. The Appraiser reserves the right to consider and evaluate additional data that becomes available between the date of this report and the date of trial, if applicable, and make any adjustments to value that may be warranted. No testimony will be rendered unless the entire appraisal fee has been paid. Further, all testimony will be subject to an expert witness fee previously approved by the Appraiser.
Ownership of Data and Data Retention
The Appraiser and the Firm shall retain ownership of all reports, and all original documentation, field notes, memoranda, data, and the like made or assembled in and about the preparation of the report. Data retention for the Firm is managed in accordance with the Uniform Standards of Appraisal Practice (USPAP) and other applicable record-keeping regulations.
Severability
If any provision of these Terms and Conditions is held, in whole or part, to be unenforceable or invalid for any reason, the remainder of that provision and the remainder of the entire Terms and Conditions will be severable and remain in effect.
Conflict with Appraisal Services Agreement
If any of these Terms and Conditions conflict with an Appraisal Services Agreement, the terms and conditions of the Appraisal Services Agreement shall control but only as between the Client and the Appraiser/Firm, unless the Appraisal Services Agreement expressly states otherwise.
Appraiser Not Responsible for Certain Conditions
Notwithstanding that the Appraiser may comment on, analyze or assume certain conditions in the appraisal, the Appraiser/Firm shall have no monetary liability or responsibility for alleged claims or damages pertaining to (a) title defects, liens, or encumbrances affecting the property; (b) the property's compliance with local, state or federal zoning, planning, building, disability access, and environmental laws, regulations, and standards; (c) building permits and planning approvals for improvements on the property; (d) structural or mechanical soundness or safety; (e) contamination, mold, pollution, storage tanks, animal infestations and other hazardous conditions affecting the property; and (f) other conditions and matters for which licensed real estate appraisers are not customarily deemed to have professional expertise.
Legal Description and Title
The legal description used in this report was furnished to us by our client, client's property contact, and/or obtained from relevant public records and is assumed to be correct. Legal counsel has not verified it, nor has the Appraiser commissioned a parcel survey. The Appraiser has not performed or reviewed a title search of the subject property. The Appraiser assumes that no liens against the property would impact its value unless otherwise noted in this report. It is assumed that the title to said premises is good, that there are no restrictions on its use, and that the description of the premises correctly designates the boundary lines. No survey of said property has been inspected by the Appraiser unless mentioned in the report, or a copy of same is presented in the report. Therefore, the Appraiser suggests that this legal description be verified before being used in a legal document or conveyance.
Lot Lines and Location of Improvements
The Appraiser assumes the improvements are within the lot lines and, except as herein noted. Any plots, diagrams, and drawings found herein are to facilitate and aid the reader in picturing the subject and are not meant to be used as references in matters of survey.
Zoning and Planning
The Appraiser relied upon public information and in some cases, staff interviews regarding zoning, land use, and concurrency with growth management laws in this appraisal. However, the Appraiser freely admits the Appraiser is not a zoning or concurrency expert, and those appropriate government authorities can only make the final determination. The valuation contained within this report is subject to such determination.
Building Permits, Planning Approvals, and Certificates of Occupancy
The Appraiser assumes that the original developer secured all necessary permits and approvals and built the subject following local zoning ordinances, building codes, and all other applicable regulations. Appraiser assumes that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.
ADA Compliance
Unless otherwise stated, defined, and considered within this appraisal report, the Appraiser assumes that the subject fully complies with the Americans with Disabilities Act of 1990 (ADA). The Appraiser has neither the expertise to identify ADA barriers that require modification nor knowledge of acceptable remedies. The Appraiser made no adjustments to account for ADA compliance. No responsibility is assumed for architectural or engineering expertise needed to identify ADA non-conformities. The Appraiser recommends that the Client retain a qualified engineer, architect, or other Americans with Disabilities Act (ADA) expert to inspect the subject, determine the level of ADA compliance/non-compliance and estimate the cost to bring the property into compliance. Any non-conformity could affect the valuation contained within this report.
Depth of Inspection
The Appraiser completed a visual inspection of the property. As such, the Appraiser toured and viewed some or all of the accessible portions of the site and improvements; the visual inspection is not meant to imply that the Appraiser viewed all of the site or improvements. The visual inspection performed is not intended to function as an inspection of the structural soundness of the site or improvements and was not intended to provide any warranty as to, or guarantee of, the condition of the property and improvements. The exclusive purpose of a visual property inspection is for Appraiser to conduct a viewing of the property to complete the appraisal assignment; the visual inspection is not intended to function as a complete property inspection, as is commonly performed by a property inspector or engineer, and should not be considered as such.
Environmental Hazards
The Appraiser assumes that the subject is unaffected by environmental issues, and the Appraiser assumes no responsibility for the presence of any toxic, caustic, noxious, or otherwise harmful materials that may be present or have contaminated the property. The existence of potentially hazardous materials used in the construction of or maintenance of the improvements, such as the presence of urea-formaldehyde foam insulation, asbestos, and/or existence of toxic waste or radon, which may or may not be present on the property, was not observed by the Appraiser, nor does the Appraiser have any knowledge of the existence of such materials on or in the property. The Appraiser, however, is not qualified to detect such substances. The presence of the same may affect the property's value, which the Appraiser may or may not be able to estimate. The Appraiser urges the Client to retain an expert in this field if desired. Appraiser is not responsible for environmental hazards or contamination that may or may not be present.
Wetlands
The Appraiser was not provided a wetlands survey. If subsequent engineering data reveal the presence of regulated wetlands on or within proximity to the subject, it could materially affect property value. The Appraiser is not qualified to make such a determination and recommends the Client commission a wetlands survey by a competent engineering firm.
Drainage
The Appraiser assumes that no drainage problems exist at the subject.
Soil Conditions
The Appraiser did not conduct soil or subsoil tests. The Appraiser was not furnished with soil or subsoil tests. In the absence of boring soil tests, it is assumed that there are no unusual subsoil conditions. If any exist, they can be or have been corrected through modern construction techniques at a reasonable cost.
Competent Management
Responsible and competent ownership, management, and marketing are assumed by the Appraiser.
Data Reliability
The information identified in this report as being furnished by others is believed to be reliable, but the Appraiser or Firm assumes no responsibility for its accuracy. Information from personal inspection and investigation is believed to be correct by the Appraiser/Firm. The comparable construction cost, expense, rental, and sales data, if any, relied upon in this report are believed to be from reliable sources. It was necessary to rely on information furnished by others as to physical and economic data. Should any information be misrepresented to the Appraiser/Firm or be in error, it may affect value. No single item of information was wholly relied upon to exclude the other information, and all data was analyzed within the framework of judgment, knowledge, and experience of the Appraiser.
Other Limitations
The appraisal is of the date specified and covers the premises described only. The values for the land and improvements contained in this report are constituent parts of the total value reported. Neither is to be used in making a summation appraisal by combination or deduction of value created by another appraiser. The land value should not be extracted from value by the Client or intended user to arrive at a depreciated or cost new, as that is not appropriate and would be misleading. Either is invalidated if so used. The purchasing power of the United States Dollar as of the effective date of valuation is the basis for the value reported. This appraisal is presented as a complete, bound report and may be considered valid only so long as it is presented in its entirety. All pages listed in the footer are present, and the Appraiser's signature is present. The Appraiser's professional opinions are any findings, predictions, assumptions, conclusions, and the like contained in the report. They are not assurances that future events or circumstances set forth herein will necessarily occur.