In Texas, what is required for a valid appraisal engagement?

For a valid appraisal engagement in Texas, a written agreement with the client is essential. This requirement ensures that both parties have a clear understanding of the terms and conditions of the appraisal, including the scope of work, fees, and any specific requirements or considerations related to the property in question. A written agreement helps to protect the interests of both the appraiser and the client by providing a documented framework for the engagement, thereby minimizing misunderstandings or disputes that may arise later.

While other forms of agreements, like oral agreements or verbal confirmations, may seem convenient, they lack the legal enforceability and clarity that a written contract provides. A letter of intent, although it can outline preliminary discussions or intentions, does not constitute a formal agreement and typically does not cover the specific details necessary for an appraisal engagement. Thus, having a written agreement is the standard practice to ensure professionalism, accountability, and compliance with appraisal regulations in Texas.