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Unusual Condo question

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Willy, Oct 8, 2009.

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  1. Willy

    Willy Sophomore Member

    0
    Jun 18, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Idaho
    I performed an appraisal on a property in a resort town in Idaho (McCall).

    The property is a detached 2,000 sf single level on .44 acre.

    I obtained the the legal description from the assessor which was something like "Unit 11 of Timberlost III"

    The title commitment (not the public records) indicates that the subdivision was developed as a condominium project.

    So....10 months after the deal has closed, an auditor from the bank is asking me to re-write the report on a 1073 (I of course originally wrote it on a 1004).

    I think this makes no sense. Every dwelling in the tract is a detached SFR on at least a 1/4 acre. There are HOA due sthat maintain a golf cart path and thats it. No amenities like pool, clubhouse....the homeowners own the dwelling - not just the airspace. There is no common area.

    I would like common sense to prevail, but we are dealing with mortgage lending so we know that won't happen.

    Any thoughts on how to handle this?

    Pretty ridiculous request in my opinion....:fiddle:
     
  2. Mike Kennedy

    Mike Kennedy Elite Member

    250
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Suggest obtaining a copy of the Prospectus, may very well be a Planned Unit Development w/ townhouses (condos) and detached SFR w/lot ownership adjacent to the Golf Course.

    TIMBERLOST 1
    TIMBERLOST 1 (PAR 4 SUB)
    ARLISS KELLY
    (208) 634-9743 Home/Cell



    Comment: $75/YEAR




    TIMBERLOST II
    TIMBERLOST II
    JIM & MARILY ARP
    PO BOX 228

    McCall, ID 83638

    (208) 634-5833 Work
    Comment: $150 7/1 TO 6/30




    TIMBERLOST III
    TIMBERLOST III
    MARILYN ARP
    (208) 634-5833 Home/Cell


    C/O JIM ARP
    PO BOX 228
    McCall, ID 83638
    Comment: $160 YEAR JULY TO JULY




    TIMBERLOST IV & V
    TIMBERLOST V

    PAT RADER
    PO BOX 2128

    McCall, ID 83638

    Comment: 150.00 Sept. to Sept.




    TIMBERLOST VI
    TIMBERLOST VI
    Ray Vertrees
    (208) 634-8674 Home/Cell


    PO BOX 4472
    McCall, ID 83638
    Comment: $230 Jan - Dec for 2007 / $200.00
    TRANSFER FEE



    Includes Fairway Ridge & Birdie Glen Townhouses.
    Please send WD when ownership changes.


    Also suggest contacting CITY Building Official: Nick Nicholas
    http://www.mccall.id.us/government/index_government.html OR

    http://www.co.valley.id.us/building.htm << County


    Recommend meeting >>>> Jane who most likely has copies of the prospectus for EACH Phase.
    http://www.mountainlakesrealty.com/secondpages/425676detail.html


    ALSO recommend obtaining a copy of the recorded DEED for the actual Legal Description.
     
  3. Willy

    Willy Sophomore Member

    0
    Jun 18, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Idaho
    There are a couple phases with townhomes...not the phase I am working in. Yes - the deed says condominium.

    I still question how appropriate it is to write an appraisal for a detached SFR on .44 acres on a form 1073. In my mind it is a bit misleading (which of course USPAP frowns upon).
     
  4. DMZwerg

    DMZwerg Senior Member

    0
    Mar 25, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    I have seen similar condo projects in the Lake Geneva area. It is not that uncommon for resort areas where properties are often "second homes" or vacation properties and thus the owners, not wanting to be burdened with maintenance, etc, often prefer condos but wanting to maintain the SF nature go for the detached SF-type of condo/PUD development with HOA & fees.

    Yep, its a condo, but I could see arguing for the SF form due to individual basements and lot rights. Form 1073 would basically require use of selectable areas for lot size & basement size/type/finish.

    Good luck! (and see Mike's post above)
     
  5. DMZwerg

    DMZwerg Senior Member

    0
    Mar 25, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    But it is a CONDO of the type SF-Detached (or SFC for Single Family Condo if you prefer). I have seen quite a few Duplex Condos as well, all detached except for the twin/pair (probably the most common type here after mid-rise, and followed by Quadplex condos).
     

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  6. Pittsburgh Pete

    Pittsburgh Pete Elite Member

    91
    May 6, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    It's a condo--it's a SF detached dwelling. It's two, two, two units in one. Misleading to complete an appraisal of a condo on a condo form? Gotta explain that one.
     
  7. Mike Kennedy

    Mike Kennedy Elite Member

    250
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Willy - who owns the lot?
     
  8. DMZwerg

    DMZwerg Senior Member

    0
    Mar 25, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    You say "Not Applicable" I say "Quite Probable". Not Applicable, Quite Probable, Potato, Potato, let's call the whole thing off! ;)

    (couldn't resist the musical interlude especially when I substitued "quite probably" instead of "Yes")


    Bottom line is that it may well be applicable and many of your peers use the 1073 for Duplex condos as well as SF detached condos. I only recently heard of appraisers using 1004's for some condos!
     
  9. Willy

    Willy Sophomore Member

    0
    Jun 18, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Idaho
    I think I've got this figured out how to make this right in my mind:



    :drinking:
     
  10. Willy

    Willy Sophomore Member

    0
    Jun 18, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Idaho

    So if you were appraising this property and it was NOT a condo, would you put in your addendum that the subject property had zero elevators and then disclose the number of owner occupants in the subject's plat?
     
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