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Deed Restriction

Discussion in 'Manufactured Housing' started by D-Max, Dec 4, 2003.

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  1. D-Max

    D-Max Junior Member

    0
    Apr 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I have a client that wants me to appraise a 4 acre tract semi rural subject to construction of a Modular home. When i pulled the deed and restrictive convenants I found the following:

    Home must be at least 1800 SF - no problem subject is 2600 SF

    much of the normal restrictions - no junk vehicles(remember I'm in redneck country), only one dwelling per lot, etc.

    Tracts cannot be subdivided without prior approval

    Then I noticed one of the last lines states that "only STICK BUILT home". It continues to state no mobile homes or MODULARS.

    Here's the problem. The exact same home was construction on an adjacent 4 acre tract and is subject to the same restrictions. I contacted the county inspections department and they said they would call me back in about an hour (2 days ago) still nothing. 5 minutes after I hung up with them the real estate consultant the wrote the restrictions called. This guy is also an appraiser with questionable ethics. He that the owners allowed the home to be placed there because when they learned that it was being built it was already 80% complete. Honestly it's the nicest home in the area. He said they would fight it blah blah blah.

    Before I call my client and I wanted to see what responses I get here. I've always been told by real estate agents, instructors and lawyers that you could not descriminate against modular construction homes. In fact the city was required by the state to allow 3 to be placed in a prominate neighborhood.

    Finally does anyone know the facts about modular home discrimination.
     
  2. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    72
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    If it is a deed restriction, then the other home owners can protest to have the home removed or sue to have it removed. It is not legally permissible, so you must disclose to the lender. If they get the modular construction approved, I would ask for the documents of approval and include them in the report. Modular home discrimination? Deed restrictions are deed restrictions and are in effect discrimination against anything that is restricted!
     
  3. D-Max

    D-Max Junior Member

    0
    Apr 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I did ask a lawyer about them but he was unsure and would have to research it. He did state that the home problem he saw was that it was worded STICK BUILT and the state of North Carolina considers modulars equal to stick built. His comment was the from a legal stand point the person that composed the restrictions should have stated SITE BUILT to bar any future problems. Se felt like the restrictions were contradictary (sp) because of state and federal regulations.
     
  4. D-Max

    D-Max Junior Member

    0
    Apr 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Anyone think submitting the report subject to approval by homeowners would fly?
     
  5. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    45
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    It depends on the exact wording in the deed and zoning restrictions. For example, zoning allows modular construction in my area but the subdivision restrictions state that no factory built structures are allowed. That means no mobile homes, no manufactured homes, no modular homes, no built in factory storage buildings, etc, etc. Expression used in many subdivision restrictions and zoning restrictions in Arizona is that no homes constructed to the HUD building code are allowed--which means a modular home can be placed in that location. In your situation tell your client that the report cannot be completed until you have something in writing from the zoning department and an interpretation in writing of the deed restrictions for that specific site. Put the responsibility back on the lender's and home owner's shoulders--not yours!
     
  6. D-Max

    D-Max Junior Member

    0
    Apr 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Thanks Jo Ann.

    Basically you suggested what I decided last night to do. This going to get interesting. I had to ride by the subject again this morning. The other lot adjacent to the subject is not under deed restrictions. They started clearing it early this morning and take a wild guess what's going in there......nope not a modular....a singlewide. What kind of idiots are these people. There are 15 lots under the subdivision restricive convenants and the one in question happens to be the last one on the road owned by these people. Why would you put deed restrictions on something that you can't control what's around it.

    I'm telling you...bagging groceries is looking better and better.


    I'll let everyone know how this turns out.
     
  7. Ghost Rider

    Ghost Rider Senior Member

    0
    Apr 27, 2003
    Professional Status:
    Banking/Mortgage Industry
    State:
    Connecticut
    That kind of deed restriction is nothing - There is a town here in CT, where it specifically states that no manufactured homes, no mobile homes, and no trailers are allowed in the zoning regulations - thats right, the whole town does not permit it.....
     
  8. Thomas Fiehler

    Thomas Fiehler Senior Member

    4
    Jun 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    Richard_ It seems to me that, if the state recoginzed Modular = stick built, is the subject a modular of manufactured house? After all, all modulars are manufactured but not all manufactured houses are modulars. B)
     
  9. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    45
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    That is why the specific wording in the zoning or subdivision restrictions is important. If it just says no HUD code--that eliminates manufactured homes. If it says no factory built structures--that eleminates everything that might be 100% constructed in a factory--barns, storage sheds, garages, carports, houses, etc. If the restrictions says only UBC or similiar building codes are allowed but don't say anything about factory, then a modular home would be acceptable. That is why I said put the responsibility back on the home owner and the lender.
     
  10. Rich Heyn

    Rich Heyn Senior Member

    10
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Jo Ann,

    I don't believe it! You didn't comment on Tom's statement that:

    Tell me you haven't given up on keeping everyone honest on definitions.


    Tom,

    Before Jo Ann comes to her senses, let's get this fixed. Tell Jo Ann that what you meant to say was that all modulars are factory-built but not all factory-built houses are modulars.

    A manufactured home is a specific type of factory-built home that is built in compliance with the HUD code. That definition works with everybody but Fannie Mae. They include anything on a permanent chassis, even older mobile homes and "on-frame" modulars.

    Rich Heyn
     
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