Is an electronic Valuation Choice Agreement legally valid?

Yes, electronic signatures are enforceable in interstate commerce under the ESIGN Act (15 U.S.C. ch. 96) and in most states under UETA; ensure intent, consent, attribution, and retention are documented to meet legal tests.

When is notarization required?

Notarization is required when the agreement will be recorded or where state law or the parties require it; check local recording or real estate rules as requirements vary by jurisdiction.

Can the valuation be binding?

Parties can make an appraisal binding by contract specification; include clear language making the report final and identify any permitted challenges or arbitration procedures.

What if the signer’s name differs from ID?

Mismatched names can raise enforceability issues and trigger identity verification steps; correct legal names before signing or include a verified alias clause.

Are there privacy considerations?

Yes. If the valuation involves protected health information or other sensitive data, comply with HIPAA (45 CFR §164.530(j)) and execute a BAA where applicable.

How to revoke or cancel the agreement?

Revocation or cancellation should follow contract terms; absent a clause, rely on mutual written agreement or applicable contract law remedies for unilateral rescission.

Electronic Signature
Templates
Miscellaneous
Valuation Choice Agreement

Valuation Choice Agreement

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VALUATION CHOICE AGREEMENT

This Valuation Choice Agreement (the Agreement) is made as of between Client Name: and Valuator Name: .

WHEREAS

WHEREAS, Client requires a valuation of the asset(s) or property described below for the purposes set forth herein; and

WHEREAS, Valuator represents that it has the qualifications, licenses and professional ability to perform valuation services in accordance with recognized professional standards; and

WHEREAS, the parties agree to select and bind to a valuation methodology as provided in this Agreement and to limit reliance and remedies consistent with the terms below.

1. DESCRIPTION OF ASSET(S)

Asset or Property Description

2. SCOPE OF WORK

Valuator shall perform a valuation in accordance with the methodology selected in Section 3 and shall prepare a written valuation report (the Report) that states the valuation conclusion, describes methodology, assumptions, limiting conditions, and any material information relied upon. The Report shall be delivered to Client at the address specified below unless otherwise agreed in writing.

Detailed Scope and Deliverables Delivery Address for Report

3. VALUATION METHOD

The parties elect the valuation methodology that shall be applied to determine the value of the asset(s). Select exactly one primary method; ancillary methods may be used for corroboration.

Primary Valuation Method (select one)

Appraisal (written appraisal by Valuator)

Market Comparison Approach

Income Approach / Discounted Cash Flow

Agreed Value (value agreed between parties)

Other:

4. PAYMENT TERMS

Client shall pay Valuator the fees set forth below in consideration for the valuation services and delivery of the Report. All fees are exclusive of sales, use, value-added and other taxes, which shall be the responsibility of Client.

Total Fee Payment Schedule Late Payment Fee

If any undisputed amount due is not paid within days after the due date, Client shall pay a late fee of per month on the outstanding balance, not to exceed the maximum permitted by law.

5. TERM AND TERMINATION

This Agreement commences on the Start Date and continues until the earlier of completion of services and delivery of the Report or the End Date, unless earlier terminated as provided herein.

Start Date End Date (if applicable) Termination Notice Period

Either party may terminate this Agreement for material breach by the other party if the breach remains uncured for the notice period above. Valuator may suspend services if Client fails to make timely payment, and Valuator shall have no liability for delay resulting from such suspension.

6. CONFIDENTIALITY

Each party shall treat as confidential all non-public information disclosed by the other party in connection with this Agreement. Confidential information does not include information that (i) is or becomes publicly available through no fault of the receiving party; (ii) was rightfully in the receiving party's possession prior to disclosure; (iii) is lawfully obtained from a third party without restriction; or (iv) is required to be disclosed by law, regulation or court order, provided the disclosing party is given prompt notice to seek protective relief.

Valuator may include customary summaries, anonymized data, and methodological descriptions in marketing or professional materials so long as Client's confidential information is not individually identifiable.

7. LIMITATION OF LIABILITY AND INDEMNITY

Except for willful misconduct or gross negligence, Valuator's aggregate liability to Client for claims arising out of or related to this Agreement shall be limited to the total fees paid by Client under this Agreement. Neither party shall be liable for special, indirect, consequential or punitive damages. Client shall indemnify, defend and hold Valuator harmless from third-party claims arising from Client-provided data that is inaccurate or incomplete.

8. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of without regard to conflict of laws principles. The parties submit to the exclusive jurisdiction of the courts located in that jurisdiction for disputes not subject to mandatory arbitration.

9. ENTIRE AGREEMENT; AMENDMENT

This Agreement, together with any schedules or appendices incorporated by reference, constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior negotiations and understandings. Any amendment or modification must be in writing and signed by authorized representatives of both parties.

10. MISCELLANEOUS PROVISIONS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign its rights or obligations without the prior written consent of the other, except that Valuator may assign to an affiliate or in connection with a sale of substantially all of its assets.

Additional Provisions / Notes

REPRESENTATIONS

Each party represents and warrants that it has the full power and authority to enter into this Agreement and that the signatory signing on its behalf is duly authorized to bind the party.

Client

Printed Name:

By:

Date:

Valuator

Printed Name:

By:

Date:

What the Valuation Choice Agreement Is and When it Applies

A Valuation Choice Agreement is a written instrument that lets parties select how property value will be determined for a specific transaction or dispute. Common in real estate, secured lending, estate settlements, and insurance claims, the form identifies the valuation method (appraisal, broker price opinion, automated valuation model), who orders the valuation, payment responsibility, and how the result will be used for pricing, adjustments, or dispute resolution.

Why a Clear Valuation Choice Agreement Matters

A clear agreement reduces later disputes by specifying valuation method, timing, fees, and acceptance thresholds; it preserves rights to challenge results and creates an evidentiary record admissible in contract or regulatory contexts under ESIGN and UETA frameworks.

Typical parties that complete a Valuation Choice Agreement

Professionals and private parties both use this agreement to set valuation expectations before a transaction or adjustment.

Lenders and servicers setting appraisal method and borrower payment responsibility.
Buyers and sellers agreeing on a neutral valuation process for price adjustments.
Estate administrators and beneficiaries selecting appraisal procedures for probate or distribution.

Step-by-step: completing a Valuation Choice Agreement

A concise sequential checklist to prepare, complete, and document the agreement.

01

Gather IDs: Collect legal names and IDs for all signers.
02

Describe Property: Enter full address and legal description.
03

Choose Method: Select appraisal type and standards.
04

Sign and Date: All parties sign and date in the signature block.

Online workflow setup for the Valuation Choice Agreement

Suggested digital workflow settings to collect signatures and route valuation instructions reliably.

Field	Configuration
Signature Field	Required; signer must initial and sign
Date Field	MM/DD/YYYY format, auto-fill option
Conditional Clause	Show appeals section if appraisal selected
Authentication	Email + SMS OTP for higher assurance

How the valuation process typically flows after signing

A practical sequence from document completion to final valuation delivery and dispute handling.

Commission: Ordering party hires the qualified valuer.
Inspection: Valuer inspects property if required.
Report Delivery: Valuation report is delivered to all parties.
Acceptance or Appeal: Parties accept value or follow appeal procedure.

Essential clauses to include in a professional Valuation Choice Agreement

Include these elements to make the agreement operational, auditable, and enforceable across typical dispute and transaction scenarios.

Valuation Standard

Define the standard of value (market value, fair market value), report format, and any required certification the valuer must provide to ensure comparability.

Scope of Work

Limitations, inspection requirements, data sources allowed, and whether comparable sales or cost approaches are required.

Ordering and Timing

Who orders the valuation, expected delivery timeframe, and remedy if a report is late or incomplete.

Fees and Payment

Identify payer(s), invoicing process, and whether fees are refundable in case of cancellation.

Dispute Resolution

Process for challenging results, selecting an independent umpire, or binding arbitration if parties disagree with the valuation.

Use and Reliance

State permitted uses of the valuation (sale, tax reporting, loan modification) and any limitations on third‑party reliance.

Security and compliance items to record in the agreement

Encryption: TLS 1.2/1.3; AES-256

Audit Trail: Signed document event log

Authentication: Email, SMS, or enhanced methods

HIPAA BAA: Required for PHI-involved valuations

Retention Policy: Specify storage period

Access Controls: Role-based signer access

Common legal risks when the Valuation Choice Agreement is incorrect

Contract Dispute: Ambiguous terms trigger litigation

Tax Exposure: Incorrect valuation can affect tax reporting

Regulatory Noncompliance: HIPAA or lending rules may be breached

Fee Disputes: Unspecified payment obligations create claims

Invalid Evidence: Unsigned or poorly signed records may be excluded

Delay Costs: Late valuations can breach closing deadlines

Frequent preparation mistakes to avoid

Leaving the valuation method unspecified, which creates grounds for later disagreement and undermines enforceability.
Failing to name who pays the valuation fee, causing billing disputes that delay order placement and report delivery.
Not describing required report contents (certification, comparable sales, effective date), which results in incomplete or unusable valuations.
Using vague timing terms like 'promptly' instead of specific days, which complicates remedies and scheduling for closings or settlements.

Comparison: eSignature vendors for signing and routing Valuation Choice Agreements

A neutral feature and price comparison to help decide which eSignature vendor fits routine valuation workflows; signNow is listed first per platform conventions.

	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	Verify	Verify	Verify	Verify
Bulk Send	Yes	Yes	Yes	Yes	Verify
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/yr	Verify	Verify	Verify

Delivery options and technical requirements for electronic completion

Choose delivery channels and authentication methods that match legal and operational needs.

Integrations: Salesforce, NetSuite, Microsoft 365
File Formats: PDF, DOCX, HTML, Excel
Authentication: Email, SMS OTP, KBA

Ensure chosen platform supports audit trails, exportable signed PDFs, and any required compliance certifications before sending agreements.

Typical timing elements to include in the agreement

Define concrete deadlines to prevent ambiguity and to align appraisal scheduling with closing or settlement calendars.

Ordering Deadline:

Specify number of days for ordering after effective date (contract-specific).

Delivery Deadline:

Set a clear day count for report delivery from order acceptance.

Review Period:

Define how many days parties have to accept or dispute the valuation.

Appeal Window:

State the period and steps for invoking an independent review or umpire.

Extension Terms:

Provide conditions that permit mutually agreed time extensions.

Illustrative examples of Valuation Choice Agreement use

Two concise real-world examples show how parties use a valuation choice provision to close gaps and speed resolution.

Optica Ventures — COO

Optica used a valuation selection clause to standardize appraisal reports across multiple properties.

The clause required licensed appraisers and a two-week delivery.
Brian Fitzgibbons notes the simple interface helped internal teams and customers complete required documents consistently and quickly.

Martin Properties — Founder

A modular valuation clause let Martin Properties choose broker opinions for lower-value assets and full appraisals for high-value sales.

This reduced cost and matched diligence to risk.
Tim Martin reported the process allowed fully online execution with compliance and security for remote closings.

Practical tips for accurate and efficient completion

Apply these pragmatic guidance items to reduce errors and preserve enforceability.

Use precise language

Avoid vague terms; define valuation standards, effective dates, and dispute steps to prevent interpretive disagreements later.

Match signer names

Ensure names in the agreement exactly match IDs and formation documents to avoid attribution or title issues.

Confirm authentication

Use an authentication level that fits risk — email for low risk, SMS OTP or KBA for higher assurance and regulatory contexts.

Attach exhibits

Include scope of work, sample report outlines, and fee schedules as exhibits so expectations are clear.

Frequently asked questions about Valuation Choice Agreements

Answers to common legal and practical questions when preparing, signing, or enforcing a valuation choice clause.

Need help? Contact support

Is an electronic Valuation Choice Agreement legally valid?
Yes, electronic signatures are enforceable in interstate commerce under the ESIGN Act (15 U.S.C. ch. 96) and in most states under UETA; ensure intent, consent, attribution, and retention are documented to meet legal tests.
When is notarization required?
Notarization is required when the agreement will be recorded or where state law or the parties require it; check local recording or real estate rules as requirements vary by jurisdiction.
Can the valuation be binding?
Parties can make an appraisal binding by contract specification; include clear language making the report final and identify any permitted challenges or arbitration procedures.
What if the signer’s name differs from ID?
Mismatched names can raise enforceability issues and trigger identity verification steps; correct legal names before signing or include a verified alias clause.
Are there privacy considerations?
Yes. If the valuation involves protected health information or other sensitive data, comply with HIPAA (45 CFR §164.530(j)) and execute a BAA where applicable.
How to revoke or cancel the agreement?
Revocation or cancellation should follow contract terms; absent a clause, rely on mutual written agreement or applicable contract law remedies for unilateral rescission.

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