[G-man]

Does anyone have a good explanation as to what a "site condominium" is? I have a client who is asking as to whether or not a single family home which I am appraising should be reported on a 1073 form rather than the 1004 form. I'm under the opinon that it should be a 1004 form, as the dwelling & surrounding lot is owned and taken care of by the owner, and the market treats these subdivisions as single family dwellings, not the typical "condo". The HOA fee takes care of a small common area/playground. Am I incorrect in using the 1004 form? Thanks for any responses.

[Pamela Crowley (Florida)]

Personally, I believe a 'site condo' unit should be on the 1004 with the new Fannie Mae Condo addendum filled in an attached. Just seems most appropriate to me as the individual unit actually does have an individual site/lot which the condo form doesn't address.

[Mark A Rewbury]

Here in SW Florida we have Landominums where the land is classified as condo, however is a separate lot with its own borders, with the subject single family dwelling on it, eg lot 1. Sometimes the appraisers office will call it "single family residential", however for financing purposes it is condo. If there is any component to the property which has a smell of condominum to it it must go on the 1073 form. This of course if the loan is being sold on the secondary market.

[Michigander]

Hi Mike, these are common in Michigan as it is a way around the plat act. I have some language in my archives and will PM you with it later. Remind me if I forget...

[Narkissos]

Hi Mike,
I hope this helps. Sorry but I type my addendums in all caps, I'm not mad at ya.


THE SUBJECT PROPERTY IS A SITE CONDOMINIUM, WITH EACH PROPERTY CONSISTING OF A SINGLE LOT AND DETACHED FAMILY RESIDENCE. THE PROPERTIES HAVE THE APPEARANCE OF AND ARE CONSIDERED BY THE MARKET TO BE EQUIVALENT TO STANDARD, PLATTED-SINGLE FAMILYSUBDIVISIONS. THE ADVENT OF THE SITE CONDOMINIUM IN MICHIGAN WAS A RESPONSE TO AN EXTREMELY LENGTHY PROCESS REQUIRED UNDER THE MICHIGAN PLAT ACT WHEN DEVELOPING SINGLE FAMILY SUBDIVISIONS. THE PROPERTIES ARE IN ALL ASPECTS IDENTICAL TO STANDARD SINGLE FAMILY SUBDIVISIONS EXCEPT FOR THERE LEGAL DESCRIPTION. ASSOCIATION FEES ARE GENERALLY SIMILAR TO HOMEOWNER ASSOCIATION FEES IN STANDARD PLATTED SUBDIVISIONS AND ARE INTENDED FOR THE MAINTENANCE OF ENTRANCEWAYS AND OPEN SPACE WITHIN THE DEVELOPMENT. THE USE OF FNMA FORM 1073 IN THE APPRAISAL OF SUCH PROPERTIES IS NOT CONSIDERED TO BE APPROPRIATE SINCE THE INFORMATIONAL REQUIREMENTS FOR FORM 1073 ARE OF LITTLE MEANING FOR SUCH PROPERTIES AND SUBSTANTIAL MEANINGFUL INFORMATION FROM FORM 1004 IS NOT INCLUDED.

[G-man]

I completed the report on the 1004 form, along with some language explaining the differences between a "site condo" and a typical condominium. The client, an AMC, :P, has come back with "Please complete a new report on a 1073 form, as the master deed refers this as being a condominium." Actually, I don't think they said "please". Oh well, now I can bang my head against the wall, trying to explain why I believe a 1073 form is inappropriate. Anyone want to make bets on weather I win this fight or not?

[laynelucia]

Originally Posted by G-man

Does anyone have a good explanation as to what a "site condominium" is? I have a client who is asking as to whether or not a single family home which I am appraising should be reported on a 1073 form rather than the 1004 form. I'm under the opinon that it should be a 1004 form, as the dwelling & surrounding lot is owned and taken care of by the owner, and the market treats these subdivisions as single family dwellings, not the typical "condo". The HOA fee takes care of a small common area/playground. Am I incorrect in using the 1004 form? Thanks for any responses.

SITE CONDOMINIUMS IN MICHIGAN:

They have become a popular part of Michigan's Real Estate Development, because they allow developers to cut expensive
government red tape and subdivision costs of the 1967 Michigan Subdivision Control Act.

You own your real estate lot and building, but usually things like parks or roadways are in common ownership by the condominium
pooled ownership feature and they may or may not have monthly costs associated with them (they usually do not), that are the
shared ownership items and the cost of their upkeep and finally what control over the common elements or private sections is
empowered, but mainly it is a way to control the style and quality of housing within the varios "Site Condo" Communities.

Until the "plat act" is revised you can expect site condominium popularity to grow. In fact many new developments are " site condos
" to the point that the local home buying market has become familiar with the term and accepting of the price benefits. Site
Condominiums are Owned by Fee Simple Ownership and should not be confused with Other Condominium developments that have
common Home Owner Associations and Common Elements. It is most appropriate to compare them with Subdivided, parceled and
condominium lots.