In the purchase agreement - "Property must appraise at or above purchase price" Can i accept the assignment?
I have received a request (at least three different properties in the past few weeks). I have been declining to take the assignments to avoid a conflict with ER 3-3 reporting a predetermined value opinion. I am furnished a copy of the purchase agreement. The request at hand is selling for $122,000. In the agreement on one of the blank terms of sale lines, the Realtor wrote in "Property must appraise at or above purchase price". I am reading this to mean that the appraised value must be $122,000 or more. If I accept the assignment am I not violating the Ethics Rule regarding providing a service that is contingent upon reporting a predetermined analysis, opinion or conclusion?
I think I could accept the assignment if the wording in the purchase agreement was something like this, "If property appraises at a value below purchase price, purchasers at their option, may declare the agreement null & void" . That statement places no undue pressure to "hit a number".
Can you please help me? I dont want to turn down jobs if i dont have to, however, we need some major education in this County if i am correct to decline the assignments, and others are accepting the jobs after i have declined. Thanks so much!
Open Aug 25, 2016 - 01:53 AM
MUST appraise at purchase pric