Engagement Letter Sample by CrisologaLapuz

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									Sample Engagement Letter


City, State, Zip

Subject:       Appraisal Report:

Mr. ____________:

In accordance with your request, we are pleased to submit this proposal to prepare a complete
appraisal report on the subject properties identified above. Countersigning this letter below will
authorize Steffens & Kling, LLC to provide the appraisal services requested.


Purpose of the Report: The purpose of the assignment is to estimate the market value of the
fee simple interest in "as is" condition on the valuation date.

Function of the Report: The report is to be used in making a decision about the potential to
market the property.

Appraisal Standards: The report will be prepared in accordance with he requirements of the
Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Ethics and
Standards of the Appraisal Institute, and comply with the appraisal requirements of the
Financial Institution Reform, Recovery and Enforcement Act (FIRREA).

Limitations Conditions: The report will be made subject to certain assumptions limiting
conditions attached. Attached is a copy of our standard assumptions and limiting conditions. If
anything is found to require an additional assumption or limiting condition, you will be notified


The report will be developed as a complete report and written in a summary format according to
USPAP requirements of Standard Rules 1 and 2.
Fees / Payment:

Our fees for professional service will be in the range of $________ - $________.

Thank you for the opportunity to provide a proposal for appraisal services. We look forward to
working with you on these assignments.

If the above conditions are acceptable, please acknowledge this agreement by signing and
returning a signed copy to our office.

Yours truly,
Steffens & Kling, LLC.

Edward V. Kling, MAI

Acknowledged and Agreed to this _____ day of __________, 2006.

Signature: __________________________________________________

Attachments: Appraisal Standards
             Qualifications of Appraiser
Appraisal Standards:

The appraisal report will:

1.     Conform to the Uniform Standards of Professional Appraisal Practice (USPAP) adopted
       by the Appraisal Standards Board of the Appraisal Foundation.

2.     Be based on the following definition of market value:

       Market value means the most probable price which a property should bring in a
       competitive and open market under all conditions requisite to a fair sale, the buyer and
       seller each acting prudently and knowledgeably, and assuming the price is not affected by
       undue stimulus. Implicit in this definition is the consummation of a sale as of a specified
       date and passing of title from seller to buyer under conditions whereby:

        1.     buyer and seller are typically motivated;
        2.     both parties are well informed or well advised, and acting in what they consider
               their own best interest;
        3.     a reasonable time is allowed for exposure in the open market;
        4.     payment is made in terms of cash in U.S. dollars or in terms of financial
               arrangements comparable thereto; and
        5.     the price represents the normal consideration for the property sold unaffected by
               special or creative financing or sale concessions granted by anyone associated
               with the sale.

       (Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.42
       Definitions [f].)

3.     Be written in either a "self-contained" or "summary" format depending on the type of
       report requested.

4.     Include a legal description of the property (when available) as well as a physical
       description of the property appraised.

5.     Analyze and report any prior sales of the property appraised that has occurred for the
       property appraised within one year for 1-4 family residential or within three years for all
       other property types.

6.     Contain sufficient supporting documentation (explanation or summary detail depending
       on the type of report requested) so that the appraiser's logic, reasoning, judgement and
       analysis in arriving at a conclusion can be followed by the reader.

7.     Provide the detail and depth of analysis that reflects the complexity of the property being

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