Reports of IAR forms being used by non-members are pouring in on the Legal Hotline. It is a violation of copyright when a non-member uses an IAR form. It is also a violation of copyright when a member supplies an IAR form to a non-member. To protect the integrity of IAR forms – and the members who pay to access them/use them as intended – IAR intends to pursue legal means to prosecute unauthorized users and their suppliers.
Given the highly competitive market we are experiencing right now, buyers are getting creative in their efforts to gain an advantage. Increasing in popularity is the use of an appraisal gap coverage provision. This provision says the buyer agrees to cover the gap if the appraisal comes back lower than the purchase price up to a certain dollar amount. Several issues may arise when this provision is in play. IAR attorneys drafted this document to make you aware and help guide you through the issues.