Terms & Conditions- Engagement Letter- Contract for Services
1. PARTIES & KEY TERMS
This Appraisal Agreement (Agreement) shall be between Colorado Appraisal Consultants, Inc. (Appraisal Firm, referred to as “We”, “Us” or “Our” in this contract) and “Client” (Client, referred to as “you”).
A. Client Identification: The “Client” is the name outlined as “Your Name” on the form submission.
B. Client Mailing Address: The “Client” mailing address is the address provided in the payment checkout which may also be the billing address.
C. Subject Property Address: The “Subject Property Address” is the address outlined as “Property Address” on the form submission.
D. Property Contact (For Inspection): The “Property Contact” is either the Client or the “Property Contact” on the form submission.
E. Appraisal Fee: The “Appraisal Fee” is the total amount indicated on the form submission.
F. Expected Delivery Date: The “Expected Delivery Date” is our timeframe as indicated in the “Turn-Around Time” portion of the form submission. It is not the desired timeframe checked by you.
G. Intended User(s): The “Intended User(s)” is/are the intended user(s) outlined as “Intended User(s) of the Appraisal” on the form submission.
H. Intended Use(s): The “Intended Use” is the intended use outlined as “Intended Use of the Appraisal” on the form submission.
I. Value Type: The “Value Type” is “As is” Market Value of the real estate only. No personal property, mineral rights, water rights, FF&E or non-realty items are included.
J. Property Interest: The “Property Interest” is the Fee Simple Estate ownership (100%). Fractional interests are not included.
K. Value Perspective(s): The “Value Perspective” is either current or retrospective (within a year).
L. Report Type: The “Report Type” is an “Appraisal Report” as defined by USPAP.
2. BUSINESS RELATIONSHIP
The work of the Appraisal Firm in this assignment is as an independent contractor and not as an employee, partner, principal, or agent of you or your organization. Our compensation is not contingent on providing a pre-determined value.
3. SERVICES/GENERAL SCOPE OF WORK TO BE RENDERED
A. Assignment/Appraisal Purpose: To develop and report an opinion of value for the subject property for the stated intended use and intended user(s). The appraiser will be appraising the real estate only, no analysis will be done in relation to potential partial interests, business value, FF&E, water rights, mineral rights or personal property items. The scope of research and valuation method(s) utilized will be focused on solving the appraisal purpose which is a result of the intended use of the appraisal.
B. Approaches to Value: The appraiser will select the most appropriate valuation method or methods after the property inspection, based on the applicability of each approach and/or the availability of data.
C. Exclusions: The scope of work does not include a feasibility study or similar level of market analysis. The scope of work does not include any additional valuation scenarios, property interests or value types.
D. Completion: Both Parties agree that services to be provided by Appraisal Firm will be considered fully rendered upon electronic submission of Appraisal Report by Appraisal Firm to Client, unless property information/access or Appraisal Fee is not received, or the terms are extended for litigation/additional consultation, in which case, additional fees will apply.
E. Non-Guarantee: You understand that we do not guarantee the results of any analysis which we may undertake, but only agree that any report or analysis shall represent our professional opinion. We will attempt to obtain and compile our data from several sources, when available, but we cannot guarantee its accuracy or completeness.
F. Inspection Limitations: The appraiser is not performing a certified property inspection or inspection analysis to a level of detail that they will verify if all systems and building components are adequately functioning. An ‘inspection’ made for appraisal purposes is in no way equivalent to an ‘inspection’ made by a property inspector that will produce a report detailing the condition of the property, including any structural, environmental, or MEP adversities. The appraiser only looks topically at the building and site and does not test anything. Please also note all extraordinary assumptions and hypothetical conditions related to the valuation analysis.
4. GENERAL ASSIGNMENT CONDITIONS
A.) Expected Delivery Date- The “Expected Delivery Date” is only a preliminary estimate and is subject to change without notice. If Appraisal Firm is unable to obtain necessary information to complete the assignment because of any reason, or the analysis takes longer than expected, or if the Appraiser is unable to inspect the property within a reasonable timeframe, as determined by Colorado Appraisal Consultants, the expected delivery date may be pushed back.
B.) Report Delivery and Electronic File- The report shall be delivered to the Client via PDF format, via e-mail. If a hard copy is requested or needed for any reason, an additional fee of $75 per hard copy will apply.
C.) Appraisal Fee- The appraisal fee is outlined in Section 1 (B.) for the above rendered services and is in US dollars.
D.) Refund & Cancellation Policy
1. If the appraisal is cancelled prior to 48 hours of the property inspection, there is a full refund.
2. If the appraisal is cancelled within 0-48 hours of the property inspection, there will be a full refund minus a $150 cancellation fee.
3. If the appraisal is cancelled after the property inspection, prior to any additional work being completed, there shall be a 50% refund.
4. If the appraisal is cancelled after the property inspection, and after any additional work has been started, there is no refund.
Fee is non-refundable for any reason after the appraisal has been completed.
C.) Payment- Payment is due upon signing the engagement letter. Payment is due prior to the property inspection. In the event of a bounced check, client shall be responsible for a one-time processing fee of $100. In the event of late payment, client agrees to pay late fees of $50 per day, or maximum interest allowable by law for every day in which the fee is past due, on top of any collection, representation, court costs, mediation costs, and/or similar fees associated with collecting payment, in addition to all time spent by Appraisal Firm collecting payment, payable at $150 per hour.
E.) Scope of Work Changes: In the event of a material change in scope of work which results from the Client not informing Appraiser of relevant assignment or Property facts before signing this Agreement, which would require additional analysis, research, or time to complete the assignment, or if the property if found to be different than originally expected, the Appraisal Firm may require additional compensation. The amount of additional compensation will be mutually agreed upon. If mutual agreement cannot be reached, the appraiser is under no obligation to render additional services.
F.) Property Type & Scope of Work Agreement: If this is a website form submission, you have entered in very basic information that has not been confirmed by us. After we look up the property, if we determine that your answers were invalid and/or the property is not what we believed it was when we provided pricing or turn-around time, we may not be able to complete the appraisal for this price and/or within this timeline. If this occurs, you will be refunded 100% of your money, subject to the Refund & Cancellation Policy above.
6. LIMITING CONDITIONS, DISPUTES, COURT APPEARANCES, and AGREEMENT
A. Entire Agreement: This Agreement along with the submitted form contains the entire agreement among the parties concerning its subject matter, and it replaces all prior agreements among them, whether written or oral, concerning this subject matter.
B. Jurisdiction: Any and all legal matters to be resolved between the Client and Appraisal Firm or Appraiser will be held in Denver County District Court. If Appraiser or Appraisal Firm is required to appear in any court not considered part of Denver County District Court, Client agrees to pay all travel costs, including accommodations and hourly wages to travel there.
C. Modification: This Agreement may be modified from time to time as necessary, via mutual agreement by both Parties.
D. Timeliness of Requested Information: All requested or pertinent information regarding the subject property and/or assignment shall be provided to Appraisal Firm no later than 48 hours after the property inspection date. If a delay is expected, please notify Appraisal Firm.
E. Election of Terms: Appraiser, Appraisal Firm and Client agree that they each have been free to negotiate different terms than stated within, or contract with other parties. Agreement with all terms and conditions herein has been voluntary.
F. Limitation of Liability: Appraisal Firm, Appraiser and Client agree that the following limitation of liability is agreed to in consideration of the fees to be charged and the nature of Appraisal Firm and Appraiser’s services under this agreement. Appraisal Firm, Appraiser and Client agree that to the fullest extent permitted by applicable law, Appraisal Firm and its Personnel’s maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement, or to Appraisals or other services under this Agreement shall be limited to the total fees and costs charged by the Appraisal Firm and/or Appraiser for the services that are the subject of the claim(s), or cause(s) of action. This limitation of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation, claims/causes of action for negligence, professional negligence, or negligent misrepresentation on the part of either party or its Personnel, but excluding claims/causes of action for intentionally fraudulent conduct, criminal conduct, or intentionally caused injury. The Personnel of each party are intended third-party beneficiaries of this limitation of liability. “Personnel”, as used in this paragraph, means the Appraisal Firm’s staff, employees, contractors, sub-contractors, members, managers, owners, partners and shareholders. Appraisal Firm, Appraiser and Client agree that they each have been free to negotiate different terms than stated above or contract with other parties.
G. Waiver of Claim(s) to Personal and/or Business Assets: Client agrees to waive their right, claim, and/or any similar judgement related to any/all personal or business assets owned in full, part, or leased by Appraiser, Appraisal Firm’s staff, employees, contractors, sub-contractors, members, managers, owners, partners and shareholders. Under no circumstances shall any personal and/or business assets of the Appraisal Firm’s staff, employees, contractors, sub-contractors, members, managers, owners, partners and shareholders or Appraiser be subject to seizure, garnishment, judgment, claim or any other taking for any reason.
H. Data Limiting Conditions: Client acknowledges and accepts that the Appraiser and/or Appraisal Firm may be required to rely heavily on information and data, including, but not limited to, the subject property, comparable properties, neighborhood trends, market trends, financing arrangements, legal status’, environmental status’, structural integrity, and more, in which the Appraiser may not be able to verify first-hand. Client releases Appraiser and/or Appraisal Firm from any liability stemming from the receipt of inaccurate data.
I. Additional Limiting Conditions and Assumptions: Client further agrees that Additional Limiting Conditions and Assumptions specific to the Assignment that will be noted in the Appraisal Report.
J. Appraisal Assumptions and Effect on Value: Due to the nature of value, the Appraiser and Appraisal Firm will be required to make a substantial amount of assumptions regarding the subject and other data including, but not limited to, the comparable properties. If any material assumption is found to be false, the results of the Assignment may be affected.
K. Intended Use/Intended User: The report cannot be used or relied on by any other party not named as an intended user in this contract, without the permission of Appraisal Firm. The Appraisal cannot be used for any use not named here specifically as an intended use, unless authorized by Appraisal Firm. In the event that the appraisal is relied on by another party not named as an intended user, or for a use other than the stated intended use, no certification of value is provided, unless the Appraiser and Appraisal Firm consent to such use.
L. Incomplete or False Information: In the event that incomplete, misleading, or false information is identified, Appraiser or Appraisal Firm reserves sole discretion to re-analyze opinions and provide an updated Opinion of Value, or void the appraisal and withdraw from the assignment. In this case, Client agrees to compensate Appraiser or Appraisal Firm for all additional time spent. Client agrees that the Appraiser or Appraisal Firm are not liable for any inaccurate determination of value stemming from the Appraiser’s receipt of incomplete, misleading, or false information.
M. Litigation/Disputes: The Appraisal resulting from this Agreement cannot be used for any litigation or dispute related to the property that is not related to the Intended Use above, unless Appraisal Firm and Appraiser are notified beforehand, in writing, prior to signing this agreement, or, the Appraisal Firm consents to such use.
N. Acceptance of Qualifications: By accepting this agreement, Client accepts the qualifications of the Appraiser and Appraisal Firm as suitable for this assignment.
O. Dispute Resolution: If Client does not pay Appraisal Firm in full for services rendered, Appraisal Firm reserves the right to pursue litigation against the Client without having to undergo mediation or arbitration. Client agrees to pay Appraisal Firm in full for the above services rendered before pursuing the dispute resolution procedures listed below. If any dispute arises among the parties under or relating to this Agreement that the parties cannot resolve voluntarily among themselves, besides non-payment, parties agree to first attempt to resolve the dispute by mediation, which shall be governed by the Commercial Mediation Procedures of the American Arbitration Association (the “AAA”) as in effect on the date of commencement of the mediation, before pursuing another avenue of dispute resolution.
P. Court Appearances: Neither the Appraiser, Appraisal Firm, or its employees, assignees, contractors, or subcontractors working on this Appraisal Report shall be required to appear in court to defend the Appraisal Report, any part of the Appraisal Report or this Agreement. If Appraiser or Appraisal Firm agrees to appear in court, or is required to appear in court by any regulatory agency with jurisdiction over this agreement or appraisal, Client agrees to pay Appraisal Firm amounts based on the below “Expert Witness and/or Additional Consultation and/or Work Rates” amounts and payment policies, in addition to any and all court related fees, travel expenses and representation of the Appraiser and/or Appraisal Firm.
Q. Expert Witness and/or Additional Consultation and/or Work Rates: If expert services and/or additional consultation is required, requested, or performed, following submittal of the report, for any reason, the terms of this contract will be extended to cover the duration of any additional work, including, but not limited to, mediation, hearings, trial, similar proceedings, consultation, investigation, and/or any additional work of any type that is required or voluntarily performed by the appraiser. Client shall be responsible for all travel expenses incurred by the Appraiser if required to appear outside of Denver County court. Travel expenses must be prepaid.
A. Base Rate- The base hourly rate (“Base Rate”) for any work and/or services performed by the Appraisal Firm or Appraiser working on the assignment, that does not fall under “Deposition Rate” or “Testimony/Mediation/Court Appearances Rate”, including, but not limited to, document preparation, and/or general services provided by the Appraiser or Appraisal Firm, shall be $200.00 per hour. The Appraiser’s time shall be tracked and invoiced to the nearest quarter hour. The appraiser shall furnish an estimate of fees and expenses at any time when requested to do so in writing by Client, but Client should be aware that this can vary considerably depending upon the time commitment and nature of the work involved and requested. Client is encouraged to and may request a periodic update of work, fees, and expenses at any time. Base Rate payment is required within 10 days of furnishing the Client with an invoice and is payable via check. If an electronic method is used of preferred, the client agrees to pay the surcharge of 3% on top of the invoiced amount.
B. Deposition Appearances Rate- Depositions and appearances at any other similar venue will be pre-billed for 8 hours at rate at $300.00 per hour (“Deposition Rate”). Unless the Appraiser or Appraisal Firm is requested to “block out” or “schedule” more than one day for deposition, in which case billable time is 8 hours at the previously stated rate, for all days requested to be scheduled for appearance. This includes any and all days the appraiser is asked to be available or keep their schedule open, even if the entire day is not requested. If more time is required, or incurred, billing will be $300.00 per hour tracked to the nearest quarter hour. Deposition Rate payment is required to be received by the Appraisal Firm or Appraiser no later than one week prior to any scheduled proceeding. If the full amount is not received within one week prior to the scheduled proceeding, the Appraiser or Appraisal Firm are under no obligation to appear, and, the client will be responsible for late fees in the amount of the maximum interest payable under Colorado State Law, plus a minimum late charge of $500, which represents lost work that the Appraiser will suffer as a result of tracking down late payment. If an electronic method is used of preferred, the client agrees to pay the surcharge of 3% on top of the invoiced amount or total amount due.
C. Testimony/Mediation/Court Appearances Rate- Court appearances, mediation, testimony, or any similar appearance by the appraiser or Appraisal Firm, will be pre-billed for 8 hours at rate of $400.00 per hour (“Testimony/Mediation/Court Appearances Rate”). Unless the appraiser or Appraisal Firm is requested to “block out” or “schedule” more than one day for deposition, in which case billable time is 8 hours at the previously stated rate, for all days requested to be scheduled for appearance. This includes any and all days the appraiser is asked to be available or keep their schedule open, even if the entire day is not requested. If more time is required, or incurred, billing will be $400.00 per hour tracked to the nearest quarter hour. Testimony/Mediation/Court Appearances Rate payment is required to be received by the Appraisal Firm or Appraiser no later than one week prior to any scheduled proceeding. If the full amount is not received within one week prior to the scheduled proceeding, the Appraiser or Appraisal Firm are under no obligation to appear, and, the client will be responsible for late fees in the amount of the maximum interest payable under Colorado State Law, plus a minimum late charge of $500, which represents lost work that the Appraiser will suffer as a result of tracking down late payment. If an electronic method is used of preferred, the client agrees to pay the surcharge of 3% on top of the invoiced amount or total amount due.
R. Misrepresentation of Facts: If Client, Property Contact or any other party purposely provide misleading, false, or materially incorrect information on the property, information which to a reasonable degree was known to be untrue, that cause any part of the appraisal to be based on a faulty assumption, the Appraisal may no longer be valid and Appraisal Firm or Appraiser reserves the right to either update the Appraisal or withdraw from the Assignment. In either case, there shall be no refund and any further time spent by the Appraiser will be billable at the “base rate”.
S. Indemnification: Client agrees to indemnify Appraisal Firm and Appraiser for any liability stemming from this assignment. This includes any and all liability, claim, loss, cost, and expense, whatever kind or nature, which we may incur, or be subject to, as an Appraiser, party, expert witness, witness or participant in connection with any dispute or litigation involving this assignment. If we must bring legal action to enforce this indemnity, you agree to pay all costs of such action, including any sum as the Court may fix as reasonable attorney fees.
T. Review/Complaints: Client, Intended User(s) and/or any other party that relies on the Appraisal agree to go through Mediation with the Appraiser and/or Appraisal Firm prior to submitting any official or unofficial complaint to any regulatory agency with jurisdiction over the Appraisal, Appraisal Firm, or Appraiser, and/or any other online directory, including Google Places, that could potentially cause unbeneficial or otherwise bad or negative exposure to the Appraiser or Appraisal Firm. Parties recognize that submitting a complaint to DORA or an online directory is not a permissible or effective method of solving a complaint or similar problem with the Appraisal or Appraiser because it will not address or rectify the complaining parties concern. Any complaint submitted to DORA or any other regulatory agency/online directory will cause damages to the Appraiser, regardless of the outcome, including, but not limited to, damaging the reputation of the Appraiser and/or resulting in termination of the Appraisal Firm or Appraiser’s career. If Client, Intended User(s) or anyone else breaches this provision, Client agrees to compensate the Appraiser for any and all time spent defending the appraisal/submitting data, future lost wages, income, and/or new business relationships as a result of the complaint, any attorney’s fees, or any other financial damages which may result from a formal or informal complaint incurred by Appraiser or Appraisal Firm as a result of this Assignment. With respect to income/monies due to the Appraiser and/or Appraisal Firm, this clause supersedes Clause F, “Mutual Limitation of Liability”.
U. Severability: The provisions of the Agreement are severable and separate, and if one or more provisions or subsections are found voidable or void by statute, arbitration award or rule of law, the remaining provisions shall be severed there from and shall remain in full force and effect.
V. Breach of Contract: In the event of a breach of contract, the Appraiser and/or Appraisal Firm may suffer damages and lost wages. Appraiser and/or Appraisal Firm are under no obligation to perform any services if Client or intended users breach this contract. All lost wages resulting from any time spent by the Appraiser or Appraisal Firm, for any reason as a result of the breach of contract, will be billable based on the “Expert Witness and/or Additional Consultation and/or Work Rates” schedule and policy. Damages will be reasonably assessed and valued by the Appraisal Firm, and if necessary, assessed based on the opinion of a mediator, judge, or jury.
W. Electronic Signature: “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. By typing your name, or accepting the terms, or accepting the terms by clicking a checkbox, or by clicking an accept or submit button, or otherwise electronically signing, this shall constitute a process in which you intend to sign this document. Client agrees not to send, cause to be sent (by another person), or pay the Appraisal Fee until this document is signed. Thus, receipt of the Appraisal Fee shall provide additional authentication of Client’s signature and their intent to sign this document.
X. Binding Effect: This Agreement shall be binding upon and inure to the benefit or determinant of the Companies and their successors and assigns.
Y. Authority: Parties warrant each has the full authority and power to enter into and perform under this Agreement and to make all representations, warranties, and grants as set forth in this Agreement.
Z. Daubert Clause: All professional fees incurred as part of this assignment, such as, but not limited to, the Appraisal Fee, Consultation Fees, Expert Fees, etc., remain payable in full even if a Judge, Jury, DORA or any other party determines that Testimony, the Appraisal Report or any other service provided by the Appraisal Firm is not valid, not permissible, to be excluded, or otherwise determined as non-compliant.
AA. Mandatory Condition Precedent to Suit: Prior to any suit or claim against the Appraisal Firm, Appraiser, Assignees, or their Employees or Contractors, all fees and monies owed to the Appraisal Firm must be paid in full.
AB. Marketing: Appraisal Firm may use photographs of the subject property for marketing purposes on their website and/or other online means.
AC. Copyright: The Appraisal and/or all report contents including, but not limited to, the valuation methods, adjustment methods, adjustment calculations, appraisal processes, mathematical equations and/or processes, format, layout, and comparability weighting systems shall remain copyrighted and/or confidential information owned in sole by the Appraisal Firm. Under no circumstances can the Appraisal be re-used, distributed, duplicated or otherwise infringed upon for financial gain. Client agrees not to share the contents of the Appraisal with other appraisers, appraisal firms or software companies to pursue the duplication or sale of the information and processes used in the Appraisal.
ENGAGEMENT LETTER / ASSIGNMENT CONTRACT ACCEPTANCE SIGNATURES
I / We agree to the terms of the assignment stated in this Engagement Letter (Agreement):
Colorado Appraisal Consultants, Inc.
By: Electronically Signed by Cody Gale
Name: Cody Gale
Client accepts all terms by accepting the terms and conditions on the form, making payment or otherwise proceeding with the appraisal.