Is an electronic signature valid on this addendum?

Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA (where adopted) electronic signatures are enforceable if intent, consent, attribution, and retention are present. Ensure the signer receives a reproducible record and consents to electronic dealings.

Do appraisals need to be notarized?

Appraisal reports and addenda rarely require notarization; deeds and some affidavits may. Confirm requirements for any associated documents and follow state notary rules or RON procedures when notarization is needed.

Can I amend the addendum after signing?

Yes, but amendments must be signed by the same parties with the same authority that executed the original. Treat modifications as contract amendments and distribute executed copies to lender and escrow.

What happens if an appraisal is low?

Follow the remedy clause: options typically include renegotiation, seller concession, buyer waiver of contingency, or termination. Time limits in the addendum control how long parties have to act.

How should I share the final signed addendum?

Provide signed PDFs with an audit trail to escrow, lender, listing and buyer agents, and maintain the original in the transaction file. Ensure attachments and filenames match the purchase contract identifiers.

Who can sign on behalf of an entity?

Only authorized officers or persons with written signing authority can bind a corporate or trust seller. Attach authorization documents when a designee signs to prevent post-closing challenges.

Electronic Signature
Templates
Miscellaneous
Property Appraisal Addendum

Property Appraisal Addendum

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

PROPERTY APPRAISAL ADDENDUM

This Property Appraisal Addendum (the "Addendum") is entered into by the parties identified below to modify and supplement the terms of the appraisal engagement.

WHEREAS

WHEREAS, Client Name: (the "Client") previously retained Appraiser Name: (the "Appraiser") to prepare an appraisal for the property described below; and

WHEREAS, the parties desire to document additional instructions, scope modifications, payment terms, and confidentiality obligations effective as of Effective Date: .

PROPERTY DETAILS

Property Address Assessor Parcel Number (APN)

SCOPE OF WORK

The Appraiser shall perform the appraisal in accordance with the standards and instructions set forth in this Addendum and the original engagement. The scope specifically includes the following:

Detailed Scope

The Appraiser shall deliver a written appraisal report that includes the valuation approach(es) used, factual data supporting the valuation, and any extraordinary assumptions or limiting conditions relied upon.

PAYMENT TERMS

Fee Amount: $ . Payment shall be due in accordance with the schedule below.

Payment Schedule

Retainer (if any): $ payable upon execution of this Addendum.

Late Payment: Any undisputed amount not paid within days after invoicing shall accrue interest at a rate of % per month, or the maximum permitted by law, whichever is less.

TERM AND TERMINATION

This Addendum commences on Start Date: and shall terminate on End Date: unless earlier terminated as provided below.

Either party may terminate this Addendum for convenience upon providing Written Notice to the other party at least days prior to the effective termination date. Termination shall not relieve the Client of obligation to pay for services performed and expenses incurred through the effective date of termination.

CONFIDENTIALITY

The Appraiser and the Client shall each hold in confidence all non-public information designated as confidential and any appraisal report and supporting workfile materials (collectively, "Confidential Information"). Confidential Information shall not be disclosed to third parties except: (a) as required by law, regulation or court order; (b) to a party's professional advisors under obligations of confidentiality; or (c) as otherwise agreed in writing by the parties.

Confidentiality obligations shall survive termination of this Addendum for a period of years.

Acknowledgement: The parties acknowledge the confidentiality provisions above and agree to comply with them.

REPRESENTATIONS AND WARRANTIES

The Appraiser represents and warrants that the appraisal will be performed by a qualified individual who holds the applicable license or certification required by law. Appraiser License/Cert No.: . The Appraiser further represents that the report will be performed in accordance with professional standards and applicable laws.

LIMITATION OF LIABILITY

Except to the extent prohibited by law, the Appraiser's total liability arising out of or in connection with this Addendum or the appraisal services shall not exceed the total fees paid by the Client under this Addendum. Neither party shall be liable for indirect, incidental, consequential, or punitive damages.

GOVERNING LAW

This Addendum shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles.

ENTIRE AGREEMENT

This Addendum, together with the original engagement and any exhibits or schedules referenced herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. Any amendment to this Addendum must be in writing and signed by both parties.

MISCELLANEOUS

Notices under this Addendum shall be delivered to the addresses below. Delivery by electronic mail is effective upon receipt by the receiving party.

Client Contact & Address Appraiser Contact & Address

Each person signing below represents and warrants that they are authorized to execute this Addendum on behalf of the party for which they sign.

Client Printed Name:

By:

Date:

Appraiser Printed Name:

By:

Date:

What the Property Appraisal Addendum Is and when it applies

A Property Appraisal Addendum is a supplemental document attached to a real estate purchase contract that records appraisal-related terms, deadlines, and remedies. It clarifies appraisal contingency language, specifies who orders and pays for the appraisal, and describes adjustments to price or closing responsibilities if the appraisal differs from the agreed purchase price. Lenders, buyers, and sellers use the addendum to document next steps when an appraisal is low, to reserve rights to renegotiate, and to set firm timeframes for delivery and dispute resolution, helping avoid ambiguity at closing.

Why add this addendum to a purchase contract

The addendum reduces ambiguity about appraisal outcomes, protects parties during financing contingencies, and creates a clear timeline for inspections, appraiser delivery, and renegotiation. It also records who pays and how discrepancies are resolved.

Who typically completes and relies on this addendum

The addendum aligns expectations among parties and reduces the risk of last-minute disputes that delay or derail closing.

Buyers and buyer agents who need to protect financing contingencies and preserve negotiation rights.
Sellers and listing agents who want clear remedies if an appraisal comes in low.
Lenders and loan officers who require documented appraisal timelines and delivery expectations.

Six core components to include in a professional addendum

A complete Property Appraisal Addendum covers the appraisal order, timeline, dispute remedies, payment, appraisal type, and impact on closing. Including each component avoids common gaps that cause delays or contract disputes.

Appraisal Order

Identify who orders the appraisal and the permitted appraisal providers or appraisal management companies.

Delivery Deadline

Specify the number of calendar days for appraisal report delivery and the date by which the appraisal must be accepted or contested.

Remedies for Low Appraisal

Describe options such as price reduction, buyer waiver of contingency, seller concession, or contract termination.

Payment Responsibility

State who pays the appraisal fee and whether refunds apply if the appraisal is contested or the contract is terminated.

Type of Appraisal

Clarify whether a full appraisal, drive-by, desktop, or broker price opinion is acceptable for the transaction.

Lender Conditions

Note any lender-required conditions or additional appraisal reviews that could affect closing timing or costs.

Required fields typically found in the addendum

Property: Street address and legal description

Parties: Buyer(s) and seller(s) full legal names

Appraisal Deadline: Calendar days to deliver report

Appraiser: Designated appraiser or ordering party

Payment: Who pays the fee

Remedy: Options if value differs

Step-by-step: filling and executing the addendum

Follow these sequential steps to prepare, sign, and circulate the Property Appraisal Addendum so it is enforceable and aligned with the purchase contract.

01

Review contract: Confirm appraisal contingency language before drafting.
02

Complete fields: Fill names, dates, appraisal type, and payment details.
03

Obtain signatures: Have all parties sign and date the addendum.
04

Distribute copies: Send executed copies to lender, escrow, and agents.

Configuring an online workflow for the addendum

Set up a digital workflow to route the addendum for signing, validation, and delivery. Use consistent field placement and authentication settings.

Field	Configuration
Signer Order	Buyer then seller then lender; set sequential routing
Authentication Method	Email link plus optional SMS code for higher assurance
Required Fields	Mark appraisal date, fee payer, and remedies as mandatory
Distribution	Auto-send signed PDF and audit trail to escrow and lender

Where to send or file the executed addendum

After signing, route the executed addendum to the contract parties and any professional who relies on it, such as escrow, lender, and the appraiser.

Escrow / Title: Primary repository for closing documents and instructions
Lender Underwriter: Receives appraisal terms to align loan conditions
Listing/Buyer's Agent: Provides executed copy to client files
Appraiser: Receives scope or ordering direction when applicable

Digital signing and platform considerations

Choose a platform that supports secure eSignature, audit trails, and the authentication level your lender or counsel requires.

File formats: PDF and DOCX supported
Integrations: Works with CRMs and storage systems
Security: Audit trail and encryption

Typical timing and deadline items to record

Record clear calendar dates and day counts to avoid uncertainty. Tie appraisal delivery and buyer response periods to the contract closing timeline.

Appraisal delivery timeframe:

Commonly 7–14 calendar days from order or inspection

Buyer response period:

Often 3–5 business days to accept or cancel after appraisal

Closing date impact:

Specify whether appraisal delays extend closing or allow termination

Renegotiation deadline:

Fixed period to present counteroffers after low appraisal

Lender submission:

Date by which appraisal must be in underwriter’s file

Key processing milestones from order to closing

Track these numbered milestones so responsibility and timing are clear throughout the appraisal and closing process.

01

Order Appraisal

Appraisal requested following contract acceptance.

02

Appraisal Inspection

Appraiser completes site visit or agreed scope.

03

Report Delivery

Appraisal report issued to lender and parties.

04

Resolve Discrepancy

Parties negotiate remedies or exercise termination rights.

Common pitfalls to avoid when preparing the addendum

Leaving remedy language vague, such as 'adjust as needed', which invites disputes about acceptable adjustments and timelines.
Failing to specify who orders or pays for the appraisal, which can create last-minute disagreements and cause lender delays.
Using inconsistent dates between the purchase contract and the addendum, producing conflicts about when contingencies expire.
Not distributing signed copies to escrow and the lender immediately, which can stall underwriting and closing.

Consequences and practical risks of incorrect addenda

Contract Ambiguity: May permit rescission or lead to litigation

Lender Delay: Underwriting holds or loan denial risk

Closing Postponement: Additional costs and scheduling issues

Financial Exposure: Buyer may owe difference if contingency waived

Title Problems: Incorrectly routed instructions may affect closing

Reputational Risk: Agent or broker liability for drafting errors

Real-world examples of how addenda resolved appraisal issues

These brief case summaries show typical outcomes when the addendum is clear versus when it is not.

Tim Martin — Martin Properties

The team added a clear appraisal deadline and payment clause to the addendum

Appraisal arrived low by 8%
The buyer negotiated a partial seller concession and the sale closed on schedule after escrow adjusted the proceeds accordingly.

Brian Fitzgibbons — Optica Ventures LLC

An explicit remedy clause prevented dispute over a low valuation

Buyer had five business days to accept or terminate
The buyer chose to terminate and the seller relisted, avoiding protracted litigation or lender hold.

Practical tips for accurate and efficient completion

Follow these best practices to reduce rework, speed lender review, and preserve contractual rights.

Use precise dates and formats

Enter all calendar dates as MM/DD/YYYY and cross-check with the purchase contract so contingency clocks and closing schedules align exactly.

Make payment responsibilities explicit

State who pays the appraisal fee and whether refunds apply if the buyer cancels; ambiguous fee language often delays clearance to close.

Require mandatory fields

In digital workflows mark appraisal date, remedy options, and signer names as required to prevent incomplete submissions.

Distribute executed copies promptly

After execution, immediately send signed PDFs and the audit trail to escrow, lender, and both agents to avoid underwriting or title delays.

eSignature vendor comparison for executing the addendum

Compare baseline eSignature pricing and capability factors that commonly matter for Property Appraisal Addenda: starting price, trial availability, bulk send, audit trail, HIPAA support, and envelope limits.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions and quick solutions

Answers to common questions about enforceability, revisions, eSignatures, notarization, and distribution when using a Property Appraisal Addendum.

Need help? Contact support

Is an electronic signature valid on this addendum?
Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA (where adopted) electronic signatures are enforceable if intent, consent, attribution, and retention are present. Ensure the signer receives a reproducible record and consents to electronic dealings.
Do appraisals need to be notarized?
Appraisal reports and addenda rarely require notarization; deeds and some affidavits may. Confirm requirements for any associated documents and follow state notary rules or RON procedures when notarization is needed.
Can I amend the addendum after signing?
Yes, but amendments must be signed by the same parties with the same authority that executed the original. Treat modifications as contract amendments and distribute executed copies to lender and escrow.
What happens if an appraisal is low?
Follow the remedy clause: options typically include renegotiation, seller concession, buyer waiver of contingency, or termination. Time limits in the addendum control how long parties have to act.
How should I share the final signed addendum?
Provide signed PDFs with an audit trail to escrow, lender, listing and buyer agents, and maintain the original in the transaction file. Ensure attachments and filenames match the purchase contract identifiers.
Who can sign on behalf of an entity?
Only authorized officers or persons with written signing authority can bind a corporate or trust seller. Attach authorization documents when a designee signs to prevent post-closing challenges.

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