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Community Wells

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Lobo Fan, Jun 14, 2007.

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  1. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    I am going rounds with a client over shared and community wells. If I note anything other than public for a water source, they are insisting that I include a copy of the well agreement in the appraisal. I am taking the position that this is outside the scope of the appraisal.

    Most of the properties in question are REO's so there is no borrower to refer to. I wouldn't even know where to start. The properties in question are usually rural (and manufactured). If there is any well paperwork, it should be in the original loan documents.

    What do you guys do in this situation?
     
  2. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    "Well share" agreements are typically (should be) recorded documents. That is a title company job to research those documents - I suggest you (client) constact them to do their job.

    I believe most community wells (gather you're talking about the co-ops out east of here) also have recorded documents. Same response or the phone number for them is 505-###-####.

    It is outside the SOW for most assignments, IMHO.
     
  3. Mountain Man

    Mountain Man Elite Member

    15
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    I'd do it... for additional fees. :icon_mrgreen:
     
  4. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    The two properties in question are in Edgewood and down near Meadowlake in Caterina's country. Thanks for the agreement. This customer is turning into a real PITA. They have some new people and they are trying to reinvent the wheel.
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    248
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas


    My spin - ditto. Let them locate that agreement. In fact, in my area few of them have an agreement, and if more than 4 houses are on it, they have to have a Health Dept. permit. Not my Job.
     
  6. Restrain

    Restrain Elite Member

    11
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Comment and go. If there is a true shared well, i.e., well on one site, pipes to two or more properties, generally up to 4, there should be a shared well agreement, as there is not a guaranteed permanent water source on or to the site. You can make the appraisal as is with the condition that such an agreement exists. There is no need for you to review it.

    For small subdivisions, I've seen numerous systems, often operated by a private system or the HOA. No need to review the docs, just describe and comment.
     
  7. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    Documents on wells can often be obtained from the State Engineers office as a PLACE TO START. I wish you luck.

    I agree with Otis .. this is a title company issue to see if the document is recorded. But lets say it isnt, and there is no agreement .. then what? Will your client require you to charge off cost of a new well?

    Just curious.
     
  8. Wayne Tomlinson

    Wayne Tomlinson Senior Member

    0
    Jan 25, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    Tell the client that due to the apparent lack of an approved well,the property does notqualify for Fannie, Rural Development, FHA, VA etc.

    Condition the value on verification of a well agreement.

    Wayne Tomlinson
     
  9. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Gotta Love Ya Man - Stirring it for the smell. :rof: :rof: :rof:

    That's why you do it as a CB4 - let the UW take care of that problem - Not MY Job!!!!!!:leeann:
     
  10. Blue1

    Blue1 Elite Member

    0
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    No...Not if you explain that you do not have access to the documents and EA it on your report.

    BTW...What constitutes a 'public' water source? The number of homes it serves? I personally know of a company that serves tens of thousands....Is that not 'public?'
     
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