Another possibility is that Ribbon Centric just sends you the amendment with a letter explaining their new rates and you decide whether or not you want to agree to the new terms.Ĭontract amendments are also useful in cases where you and the other party have ended up handling matters differently than the contract requires. After a phone call in which you both agree to a new price, Ribbon Centric sends you the amended contract, which you both sign. For example, your company, Hats For Less, LLC, buys ribbons from Ribbon Centric, Inc., who sends you notice that they have to raise their prices on a certain type of ribbon. You might discuss the change, have one party write it up, and then have both sign it. You should amend a contract any time you or the other party wants to make changes to the terms of the agreement. You're simply negotiating the original terms. Since there is no existing contract in place, there's nothing to amend yet. Keep in mind that when you're negotiating a contract, changes made during that process are not amendments. The original contract remains in place, only with some terms altered by way of the amendment. An amendment can add to an existing contract, delete from it, or change parts of it. To do so, you need to create a contract amendment.Ī contract amendment allows the parties to make a mutually agreed-upon change to an existing contract.
CONTRACT REVISIONS UPDATE
Situations can change though, and circumstances might require an update to your contract. This will go a long way toward saving you and your E&O provider, major headaches.When your business enters into a contract with another business or person, both parties are bound by the terms of the contract and are legally required to follow them. Get in the habit of assigning unique file extensions so as to distinguish between the first and fifth version. This means all versions of the report that were tendered to the client. All of the others were overwritten using the same file number. The appraiser, when asked to produce each version for investigation, is unable to comply because the only report in existence was the last version they created. One of the enduring problems that we still see are complaints that include three, four, five or even nine versions of the same report. It would be to your advantage to be able to say, definitively, that the contract you relied upon was the last one provided by the AMC or lender.įor years the Board has been urging licensees to adopt good computer housekeeping habits. Those complaints come from both consumers and lenders/AMCs. We receive numerous complaints about appraisers who “missed the sale price”. While a lender may not be required by Fannie Mae to share changes to the contract price with the appraiser it would be a good idea for you to keep what is provided to you in your workfile.īecause AMCs are conduits for lenders who use them, this Fannie Mae requirement is for them as well.
In addition, we have updated the policy to require disclosure of changes to financing information (such as loan fees and charges, and subordinate financing provided by interested parties) to the appraiser only for purchase transactions. However, minor updates to the contract, such as changes to seller paid closing costs or changes to the contract price, do not require an updated appraisal. With this update, we have clarified when the appraiser must be provided with updates to the sales contract and circumstances that warrant updates to the appraisal.įor example, if the contract is amended in a way that affects the description of the real property used by the appraiser, then the lender must provide the updated contract to the appraiser and the appraisal should be updated. Bankers Concerned About Appraisals - October 18, 2017Īmendments to Sales Contract & Updates to the Appraisal…įannie Mae recently issued the following:Ĭurrently, we require the lender to provide the appraiser with all amendments made to a sales contract, including amendments that are made after completion of the appraisal.Hybrid Assignments, the Consequences - February 7, 2019.
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