Is eSignature legally valid?

Yes. Electronic signatures on contracts are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and most states via UETA, provided intent, consent, attribution, and reliable record retention are present. Exceptions like wills or court filings may still require paper.

Do addenda need notarization?

Generally no; an appraisal addendum is a contract attachment and does not usually require notarization. However, specific transactions or state practices may require notarized signatures or notarized documents for recording; verify with closing agent or state law.

Can lenders accept e-signed appraisals?

Lenders and underwriters often accept electronic appraisal reports if they meet investor or GSE requirements; ensure report format, appraiser license, and transmission method comply with underwriting guidelines to avoid rejection.

How to handle appraisal disputes?

Include a dispute resolution process in the addendum: allow for a second appraisal, define who pays, set timelines for rebuttal, and specify whether parties will use a mutually agreed appraiser or binding appraisal procedures.

What if names differ on documents?

Mismatched party names between the addendum, contract, lender, or title records can delay closing and cause underwriting holds. Correct discrepancies promptly, attach an affidavit if necessary, and consider attorney review to confirm identity and enforceability.

How long to keep the signed addendum?

Retain signed addenda and appraisal reports at least three years after closing for tax and audit purposes; financial or healthcare records may require longer retention (e.g., six years for HIPAA), and state rules can extend periods further.

Electronic Signature
Templates
Real estate
Real Estate Appraisal Addendum

Real Estate Appraisal Addendum

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

REAL ESTATE APPRAISAL ADDENDUM

This Appraisal Addendum is incorporated into and made part of the Purchase Agreement dated between Seller: and Buyer: . All capitalized terms used but not defined herein have the meanings given in the Purchase Agreement.

Parties and Contact Information

Buyer Name Buyer Contact (Address, Phone, Email) Seller Name Seller Contact (Address, Phone, Email)

Property Identification

Property Address Parcel / APN Number Legal Description

Contract Financial Terms

Purchase Price: $ Earnest Money Deposit: $

Appraisal Contingency Terms

Appraisal shall mean the written valuation performed by a state-licensed or state-certified appraiser engaged by the Buyer's lender or by a mutually agreed appraiser. Appraisal required by lender or obtained by Buyer shall be completed and delivered to Buyer and Seller no later than .

Appraiser / Firm Name

If the Appraised Value is less than the Contract Price, the parties shall proceed as indicated below. "Appraised Value" means the single value stated in the appraisal report, excluding adjustments for concessions, and using accepted appraisal standards.

Appraised Value (reported) Appraisal Report Date

Remedies If Appraisal Is Less Than Contract Price

If Appraised Value is less than the Purchase Price, the following options apply. Check all options that apply and provide amounts or timeframes where indicated.

Seller agrees to reduce the Purchase Price to the Appraised Value. Reduction amount (if partial): $

Buyer may elect to pay the difference between Purchase Price and Appraised Value in cash at closing, up to $.

Parties shall negotiate in good faith to agree upon an adjusted price or other terms. Negotiation period: days from delivery of appraisal.

Either party may request a second appraisal at its expense. Request must be delivered within days. Party paying for second appraisal: .

If the parties cannot agree in accordance with the selected options above within the applicable time periods, either party may terminate the Purchase Agreement by written notice and shall be entitled to the remedies for termination specified in the Purchase Agreement, including disposition of the earnest money deposit.

Allocation of Costs and Other Provisions

Cost of the original appraisal shall be paid by: . Cost of any second appraisal shall be paid as selected above.

The parties acknowledge that lender-required appraisal determinations may control lender loan approval. This Addendum does not waive any lender protections or underwriting requirements. If lender conditions or loan denial result from Appraised Value, the parties' rights under the financing contingency in the Purchase Agreement remain in effect unless expressly waived in writing.

Effect on Earnest Money and Closing

Representations, Remedies and Governing Law

Each party represents and warrants that it has the authority to enter into this Addendum and that the individual signing below is authorized to bind the party. Failure to comply with notification timeframes or other obligations described in this Addendum may constitute a default under the Purchase Agreement and entitle the non-breaching party to exercise remedies provided therein.

This Addendum constitutes the entire agreement between the parties with respect to the appraisal matters addressed herein and supersedes any prior oral or written agreements on those matters. This Addendum shall be governed by the laws of the state in which the Property is located.

Disclosures

Seller discloses known material defects that may affect value: Yes No If Yes, describe:

Miscellaneous

Notices required under this Addendum shall be delivered in accordance with the Notice provisions of the Purchase Agreement. Any party's failure to enforce any provision of this Addendum shall not be deemed a waiver of future enforcement of that or any other provision.

Additional Terms or Clarifications

Buyer - Printed Name:

Buyer - Signature:

Date:

Buyer - Title/Capacity (if signing for entity):

Seller - Printed Name:

Seller - Signature:

Date:

Seller - Title/Capacity (if signing for entity):

What the Real Estate Appraisal Addendum Is

The Real Estate Appraisal Addendum is a short, standardized document appended to a purchase contract or listing that records agreed appraisal terms, valuation contingencies, and procedures if the appraisal differs from the contract price. It clarifies who orders and pays for the appraisal, the deadline for report delivery, accepted appraisal methods, and remedies such as price adjustment, buyer termination, or additional deposits. Lenders, buyers, sellers, and brokers commonly reference it to reduce disputes and set expectations during the valuation stage of a real estate transaction.

Why Use a Real Estate Appraisal Addendum

A Real Estate Appraisal Addendum reduces uncertainty by documenting appraisal contingencies, timelines, and remedies. It protects buyer and seller interests, supports lender requirements, and shortens dispute resolution by making appraisal expectations explicit and enforceable under the purchase agreement.

Who Typically Relies on This Addendum

Typical users include buyers, sellers, real estate agents, mortgage lenders, and appraisal management companies who need appraisal contingency clarity.

Buyers – preserve deposit and termination rights when appraisal is below agreed price.
Sellers – set procedures for price renegotiation and buyer cure periods to avoid unexpected cancellations.
Lenders/AMCs – confirm appraisal ordering, payment responsibility, and acceptable report formats.

Use the addendum early in negotiation to ensure all parties understand appraisal outcomes and contractual options.

Core Elements to Include in the Addendum

Core sections of a Real Estate Appraisal Addendum define contingency triggers, responsibilities, timing, appraisal standards, and remedies available if value conflicts with contract terms.

Contingency

Specify the appraisal contingency threshold and whether the contract allows termination, renegotiation, or buyer cure when the appraisal value is lower than the agreed purchase price.

Ordering Party

Identify who orders and pays for the appraisal report, name of appraisal firm or AMC if fixed, and any limits on selecting the appraiser to avoid conflicts.

Deadline

Set the delivery deadline for the appraisal, specify acceptable extensions, and explain remedies or timeline adjustments if the report is late or incomplete for lender or buyer review.

Appraisal Type

State required appraisal report type (e.g., FNMA/Uniform Residential Appraisal Report, commercial formats), accepted valuation methodologies, and whether drive-by or full interior inspections are permitted by a certified appraiser.

Value Dispute

Describe procedures for disputing or reconciling divergent appraisals, including second appraisal rights, split-cost arrangements, and timelines for final adjustment negotiations between buyer and seller within specified days.

Delivery & Records

Require delivery format, recipient list, digital copy retention, and acknowledgment of receipt; specify who retains originals and how long copies must be preserved for audit purposes.

Required Fields and Quick Reference

Property Address: Full street, city, state, ZIP.

Parties: Full legal names and contacts.

Purchase Price: Stated contract price in dollars.

Contingency Terms: Trigger thresholds and remedies.

Appraiser Info: Name, license, AMC or firm.

Deadlines: Appraisal delivery and cure dates.

Step-by-Step: How to Complete the Addendum

Follow these steps to complete and attach a Real Estate Appraisal Addendum to a purchase contract accurately and on time.

01

Prepare Addendum: Draft with precise property and party details.
02

Agree Terms: Negotiate contingency thresholds and deadlines.
03

Order Appraisal: Appraiser engagement and payment terms set.
04

Attach & Distribute: Include addendum in contract and notify stakeholders.

How to Configure an Online Workflow

Configure online workflow fields and recipient routing to collect signatures, attach appraisal reports, and enforce deadlines in the digital process.

Field	Configuration
Signature Field	Require signature, date, and initials where applicable
Appraisal Attachment	Allow PDF upload, require file type and size limits
Recipient Routing	Set signer order, CC addresses, and notification rules
Reminder Schedule	Auto-reminders at set intervals until signing complete

Submission and Acceptance Workflow

Typical submission and acceptance flow for an appraisal addendum outlines ordering, review, signing, and distribution steps.

Upload Addendum: Uploader attaches PDF or editable form.
Assign Signers: Add buyer, seller, agent, lender as signers.
Authenticate Signers: SMS code or email link verification.
Finalize & Store: Signed copy and audit trail archived.

Platform Requirements for eSubmission

Digital submission requires platform support for PDF forms, field placement, audit trails, and secure storage to meet lender and regulatory needs.

Formats: PDF, DOCX, and image attachments accepted.
Integrations: Works with MLS, title, and lender systems.
Security: TLS in transit, AES-256 at rest.

Key Deadlines and Timing Expectations

Timelines for appraisal ordering, delivery, review, and cure periods should be explicit to prevent missed deadlines and contract disputes.

Order Appraisal:

Within 5–10 business days of contract acceptance.

Delivery Deadline:

Appraisal report delivered within lender or addendum deadline.

Review Period:

Buyer and lender review within 3–5 business days.

Cure Period:

Seller or buyer has 5 business days to respond.

Final Acceptance:

All adjustments and signatures completed before closing date.

Common Preparation Mistakes to Avoid

Leaving appraisal contingency ambiguous, which creates disputes when appraisals come in below contract price and parties lack agreed remedies.
Failing to specify who orders or pays for the appraisal, causing delays while responsibility is clarified mid-process.
Not defining acceptable appraisal report types or inspection scope, which can lead to lender rejection for nonconforming formats.
Missing signatures or incorrect names that conflict with title or lender records, producing underwriting or closing hold-ups.

Risks and Potential Consequences

Contract Voidance: Buyer may rescind.

Delay in Closing: Extended closing timelines.

Lender Rejection: Loan may be denied.

Additional Costs: Reinspection or appraisal fees.

Deposit Risk: Forfeiture or dispute.

Legal Exposure: Breach claims possible.

eSignature Pricing and Feature Comparison for Appraisal Addenda

Comparison of common eSignature plans and features relevant for executing Real Estate Appraisal Addenda and storing appraisal reports.

	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, no credit card	No	No	Yes, limited	Yes, limited
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 by plan	Varies by plan	Varies by plan

Frequently Asked Questions About the Appraisal Addendum

Answers to common questions about completing, signing, and storing a Real Estate Appraisal Addendum and distribution.

Need help? Contact support

Is eSignature legally valid?
Yes. Electronic signatures on contracts are enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and most states via UETA, provided intent, consent, attribution, and reliable record retention are present. Exceptions like wills or court filings may still require paper.
Do addenda need notarization?
Generally no; an appraisal addendum is a contract attachment and does not usually require notarization. However, specific transactions or state practices may require notarized signatures or notarized documents for recording; verify with closing agent or state law.
Can lenders accept e-signed appraisals?
Lenders and underwriters often accept electronic appraisal reports if they meet investor or GSE requirements; ensure report format, appraiser license, and transmission method comply with underwriting guidelines to avoid rejection.
How to handle appraisal disputes?
Include a dispute resolution process in the addendum: allow for a second appraisal, define who pays, set timelines for rebuttal, and specify whether parties will use a mutually agreed appraiser or binding appraisal procedures.
What if names differ on documents?
Mismatched party names between the addendum, contract, lender, or title records can delay closing and cause underwriting holds. Correct discrepancies promptly, attach an affidavit if necessary, and consider attorney review to confirm identity and enforceability.
How long to keep the signed addendum?
Retain signed addenda and appraisal reports at least three years after closing for tax and audit purposes; financial or healthcare records may require longer retention (e.g., six years for HIPAA), and state rules can extend periods further.

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