I’ve prepared the following example engagement agreements for appraisers to consider in their practices. You’ll find a complete discussion of engagement agreement details in Chapter 8 (Engagement Agreements and Appraisal Terms and Conditions) in my book.
These materials are adaptations of the sample agreements made available by the Appraisal Institute on its website (link). I participated in the Appraisal Institute’s work group that revised the materials available on its site in 2018.
Non-Litigation Assignments: The following example agreement is intended for appraisal assignments in which the appraiser is performing a single appraisal for non-litigation purposes. It’s primarily intended for non-lending assignments, because regular lenders generally require their own engagement forms, but it is still suitable for lending purposes if your client will accept it. The first version below is a two-part agreement with a main body and then a separate “terms and conditions” document. The second version is a streamlined “all-in-one” engagement agreement. Of course, you should edit either version – and consult with your own legal counsel – as necessary to suit your practice, the specific assignment and potential state-specific legal concerns.
Litigation Consulting/Expert Witness Assignments: The following example engagement letter is intended for litigation assignments for which the appraiser is being retained as a consulting expert with the possibility that the appraiser may later be designated as a testifying expert witness.