Terms of Agreement

1. 1. Phase I. Phase I of the appraisal assignment includes the purpose and scope of assignment described in Paragraph 2 above. Appraiser’s work begins upon the return of the engagement letter. The prompt timing of Appraiser’s work requires all requested appraisal information provided by Client and the prompt scheduling of the inspection. Phase I concludes when a final narrative report is produced and compensation is received. The appraisal report will be delivered via electronic distribution in secure PDF format to the signor of this engagement letter and intended users. If printed versions are requested, then hard copy, bound appraisal reports are available at a cost of $200.00 per color copy, or $85.00 per black and white unbound copy, not including method of delivery costs. Follow-up appraisal analysis, report documentation and meetings, if needed beyond the point of Appraiser’s issuance of the final reports under the Phase I engagement process, will be invoiced at a rate of $365.00 per hour.
   2. Phase II. This phase of the engagement involves any additional research, changes to the scope of work, and/or any preparation for litigation purposes such as appraisal review, review of the research and analysis retained in the workfile, workfile preparation for deposition, expert witness, and/or consulting purposes. Phase II is separate from Phase I and typically occurs after the final report has been turned over to Client. Phase II will be consented to in writing between the Parties prior to initiating this phase.
   3. Phase III. This phase of the engagement occurs after work from Phase II is completed and the Appraiser is compensated. Phase III is additional research, analysis, amendments/additions/changes to Phase II work and preparation time for pre-trial or trial engagements. The rate for all Phase II and Phase III engagements is $345.00 per hour. Phase III will be consented to in writing between the Parties prior to initiating this phase.

Appraiser’s total fee and estimate of expense are based upon Appraiser’s estimate of the professional services to be furnished according to our understand of Client’s requirements and are not contingent upon the outcome of Appraiser’s conclusions. The contracted fee specifically assumes, unless noted to the contrary below, that the Property is as represented to Appraiser for the fee quote. Should the properties materially differ from what was represented to Appraiser for the fee quote, Appraiser reserves the right to amend its fee for this engagement.

The total fee is inclusive of all reasonable expenses for local and metropolitan Chicago area follow-up. Appraiser’s fee quote also includes all reasonable research, administrative support, and electronic dispatch costs associated with the preparation and issuance of final electronic report documents to be issued.

Invoices beyond 21 days must incur a 10% late penalty. Invoices taken to collections will incur the cost of collections (which include an hourly administrative rate of 35.00 per hour at a minimum base of $700.00). Penalties for non-payment will include all collections, court fees and attorney fees, as well as potential liens against the Property. In addition to the aforementioned, Appraiser is entitled to recover an hourly fee of $365.00 per hour for time spent by its officers, employees, or representatives in attempting to collect unpaid amounts, including but not limited to preparing legal documents, attending proceedings, and engaging in settlement discussions.

Client has agreed to pay 1/2 of the appraisal fee to begin work and the remaining 1/2 will be due upon completion and before transmittal. *This is for protection of the client and to conform to USPAP requirements.

Any and all processing fees, including, but not limited to: ACH, AvidXchange and wire transfer fees are the responsibility of the signor/authorizer of engagement. Authorized fee and late charges are due irrespective of requests for COI or other documentation. In the event that payment may be interrupted by bank error, requirements by a third-party bill-pay company, technological issue, mail loss or other, Appraiser cannot assume liability for the closure of invoices. Appraiser is under no obligation to provide notarized or affidavit documentation to aid investigation for any interruption. Full responsibility for timely payment rests solely on the company or entity represented by signed authorization.

1. 1. Appraiser’s reports will be used only for the purpose stated herein; any use or reliance for any other purpose, by Client or third parties, is invalid and disallowed. Client may show reports in their entirety to those third parties who need to review the information contained herein as defined as an intended user. No reference to Appraiser name or Appraiser’s report, in whole or in part, in any document you prepare or distribute to a third party, may be made without our written consent. Appraiser reserves the right to include Client name in our client listing, but Appraiser will maintain the confidentiality of all conversations, documents provided to us, and the contents of our records, subject to legal and administrative process or proceedings. These conditions can only be modified by written documents executed by the Parties.
   2. Appraiser will make no investigation of, nor assume responsibility for, the existence of or impact of any hazardous material/substance which may or may not be present on the property in the development of our appraisal conclusion.