difference between an appraisal and a property inspection?

The Function of an Appraisal

Homebuyers may become confused between the purpose of an appraisal and the purpose of an inspection. An appraiser evaluates a property to determine the value of the property based on its current condition, and the current market conditions. An “as is” value can be based on a property that does not meet minimum health and safety standards. In fact, some values end up being land value less demolition costs. Some mortgage clients require appraisers to take into account readily observable conditions and determine if the property meets minimum health and safety standards.

Compare that to the function of a home inspector who scrutinizes the physical condition of the property and identifies items that should be repaired or replaced. This includes pointing out problems that are not easily discernible to a novice homebuyer, informing them regarding working order, the need for repair or replacement, and telling the homebuyer about possible remaining economic life.

Neither the appraiser nor the inspector is responsible for guaranteeing the condition of the property, its systems, appliances, etc. They do not have to certify that the property is free of defects..

Electronic Signatures

Electronic Signatures
The Uniform Electronic Transaction Act provides legal status to paperless online transactions. Electronic signatures have the same legal authority as written signatures in pen and ink on paper. With some exceptions, this means that parties who mutually agree can conduct business electronically, and electronic records, signatures and contracts will be legally enforceable. The law allows admissibility of electronic records in a court of law. All items currently required by law to be made in writing can be done electronically, as long as the recipient is able to print or store an electronic version. Electronic documents in some areas, such as landlord-tenant notice procedures, cannot replace physical documents. The law required that by January 1, 2002, all Florida counties have an index of all recorded documents on a publicly available Web site. The documents had to be online and retrievable by January 1, 2006.
Excluded from this act are transactions relating to portions of the Uniform Commercial Code, transactions overseen by the Uniform Computer Transaction Act, and rules relating to judicial procedure. FS § 475.5018: When any act performed under this part must be performed in writing or acknowledged with a signature, the provision of an instrument of writing by electronic means or facsimile, including a signature transmitted by electronic means or facsimile, is binding and sufficient.

Mortgage Forgiveness Debt Relief Act of 2007

Tax Relief for Some Financially Distressed Homeowners Homeowners experiencing short sales and foreclosures were given tax relief under the Mortgage Forgiveness Debt Relief Act of 2007. Instead of treating cancellation of debt as taxable income on the foreclosure of a principal home, no taxes will be levied on discharges of indebtedness of up to $2,000,000 for married taxpayers filing jointly and of up to $1,000,000 for a married taxpayer filing a separate return through tax year 2012. The basis of the taxpayer's principal residence is reduced by the excluded amount, but not below zero. The 2008 Economic Stabilization Act provided a three-year extension for home mortgage debt forgiveness relief. Qualified principal residence indebtedness is acquisition indebtedness (as discussed previously) with respect to the taxpayers' principal residence, but with a $2,000,000 limit ($1,000,000 for married individuals filing separately). Principal residence has the same meaning as under the home sale exclusion rules of IRC Code Section 121. Acquisition indebtedness of a principal residence includes refinancing of debt to the extent the amount of the refinancing doesn't exceed the amount of the refinanced indebtedness. The exclusion also does not apply to a taxpayer in a Title 11 bankruptcy. An insolvent taxpayer (other than one in a Title 11 bankruptcy) can elect to have the mortgage forgiveness exclusion not apply and can instead rely on an exclusion for insolvent taxpayers.