1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Client wants 1007 filled out without a lease agreement and tenant occupied checked

Discussion in 'General Appraisal Discussion' started by kevinhenley, Oct 11, 2010.

Thread Status:
Not open for further replies.
  1. kevinhenley

    kevinhenley New Member

    0
    May 11, 2009
    Professional Status:
    Licensed Appraiser
    State:
    Ohio
    I have a problem with this because I cannot verify the property is a tenant occupied without a lease agreement. Of course, on the 1007 it questions whether or not the subject is leased and if so, for how much. My client is just telling me I should figure out the projected lease amount with the 1007, which I can do but it leaves the question about rental amount for subject unclear. In my opinion it may be owner-occupied, or vacant, and owner is just keeping property there. The contact at the house claimed to be the son-in-law of owner, but to be honest,didn't act like he lived there, but was just helping fix it up. Any suggestions of a response for my client?

    Thanks
     
  2. CANative

    CANative Elite Member

    168
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The 1007 is just a rent survey leading to an opinion of market rent for the subject. Who cares who lives there?
     
  3. Vermonter

    Vermonter Senior Member

    12
    Mar 21, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Vermont
    Agreed. Consistently come across these where tenants are family/friends and paying well below market rent. We have Homestead/Non-Homestead tax assessment, so that makes verifying occupancy easy. If you don't have something similar, find out where the municipality is mailing the tax bill. If it differs from the subject address you know it isn't owner occupied.
     
  4. Jerry Bone Jr

    Jerry Bone Jr Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    "Yes i can" is a good place to start.
     
  5. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    What? You've never heard of Tenant at Will? And you're doing a Rent Schedule?
     
  6. Elliott

    Elliott Elite Member

    35
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    I've had lenders requests a Rent & OIS for properties that were high end second homes.
    The homes weren't rented, the lender just wanted to know how much income they
    were capable of generating if the borrower couldn't make their payments.

    Hard to believe huh? There was a time some lenders behaved in a prudent manner.
     
  7. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    217
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    The correct term is Tenancy at Will, more commonly known as a month to month lease.

    The OP simply needs to research the market and find what is Market Rent and explain the situation.
     
  8. Mile High Trout

    Mile High Trout Elite Member

    11
    Feb 13, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Potentially easier to consider in private single family owner / renter situations as well.

    Unlike apartments, the month to month may not be as different from the leased rates.
     
  9. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    I have been calling it, and all the Brokers in my area call it Tenant at Will. There is no "lease" agreement. There might be a "rental agreement" but some are just that TAW, leave any time, nothing holding you back.
     
Thread Status:
Not open for further replies.

Share This Page