I’ve prepared the following example engagement agreements for appraisers to consider in their practices. You’ll find a complete discussion of engagement agreements in Chapter 8 (Engagement Agreements and Appraisal Terms and Conditions) of 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 two example agreements are intended for appraisal assignments in which the appraiser is performing a single appraisal for non-litigation purposes. They’re primarily intended for non-lending assignments, because regular lenders generally require their own engagement forms, but they are still suitable for lending purposes if your client will accept the wording.
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 own practice and your state’s laws.
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.