Common use of Initial Valuation Clause in Contracts

Initial Valuation. The initial value of each property will be based on an independent appraisal at the time of closing of the purchase (or the contract price relating to the purchase, if there is no independent appraisal at the time of closing), which may result in a potential unrealized gain or loss reflecting the difference between the investment’s fair value and its cost basis (which is inclusive of all expenses relating to purchase, such as acquisition fees, legal fees and expenses, and other closing costs).