Fee Simple vs Leasehold

[PropertyEconomics]

At some point, I think we need to put a stop to this. I think you playing games with my name is unacceptable. What's more, I am posting under my real name, while you hide behind an alias. That makes it eggregious.

If you intended it as a compliment, thanks. However, it is not appreciated.

It was intended as a compliment ... and as such .. I will stop posting to you. You know you refuse to recognize well accepted terms in the appraisal industry and you tell us that all the time. If you can make fun of my use of words then I can of yours. If you take it personal my apologies.

We finally agree on most things and you have to make it personal again. I think you just enjoy doing that.

 

[xm72mhd]

Ok .. list them as owners .. THEY ARE NOT BOTH OWNERS ... one owns the real estate .. one holds the right of occupancy / enjoyment.

It is semantic. Nope, no deal. They are either both holders or they are both owners. It is in the switcherooing around that the devil hides.

Where is holder on the fannie forms anyway?

I got it, by having no owner, there is no fee. Now we can have a hypothetical fee so we can have a hypothetical owner of it.

 

[xm72mhd]

Edd .. Do you list evey tenant in an apartment complex as an owner?

If I had this assignment and the leases read like this one, I would. I certainly would.

 

[PropertyEconomics]

It is semantic. Nope, no deal. They are either both holders or they are both owners. It is in the switcherooing around that the devil hides.

Where is holder on the fannie forms anyway?

I got it, by having no owner, there is no fee. Now we can have a hypothetical fee so we can have a hypothetical owner of it.

The Owner, In my opinion, is the seller in the contract and the one listed on the ownership records of the county.

 

[PropertyEconomics]

If I had this assignment and the leases read like this one, I would. I certainly would.

There is NOTHING I can say to this statement. It is incorrect in my opinion.

Enough said. Im not going to change your mind and you sure wont change mine. Appraise it as you see fit.

I ask you to call ANY MAI you know and present this to them and tell them you will list tenants of an apartment complex as owners and see what they tell you ... then report back please.

 

[Doug Meyer]

Sheess!!! Come on guys, I think you lost the original poster on this one!! This was made way too tough!!

 

[PropertyEconomics]

Doug .. you are correct.
Appriase it as fee simple interest with the HC attached regarding extingushment of the lease .. OR
Appraise it as Leased Fee and explain the leasehold position and value if any ...

In My Opinion .. those are the two options to appraise this assignment.

As long as there is an ENCUMBERANCE in the form of a lease .. there is no fee because Fee Simple Interest is an UNENCUMBERED ESTATE.

It was enjoyable seeing where Edd was coming from.

 

[xm72mhd]

There is NOTHING I can say to this statement. It is incorrect in my opinion.

Enough said. Im not going to change your mind and you sure wont change mine. Appraise it as you see fit.

I ask you to call ANY MAI you know and present this to them and tell them you will list tenants of an apartment complex as owners and see what they tell you ... then report back please.

I bet you get all like that every time you get mad.l

If those tenants had the option to buy stated in the lease and they were exercising it? Or perhaps even if the leases prevent sale and the tenants were agreeing to the conveyance. Usually it would be handled with a subordination agreement though if the fee can't be transfered without their agreement. Remember to keep the wheels on when you turn those corners and change the facts PE. This is not a one size fits all and you shouldn't take it there.

You are kind of leaving stuff out here and there.

You call the MAI, and pay him to tell you, I don't need to.

Funny thing is though, we'll probably both end up in the same place, but I can get there without the hypothetical and explain how I did it very well. You on the other hand will use the hypothetical and then what comes next? Somebody has to check on your condition subsequent. It is unnecessary to do it that way.

 

[Fred]

It was intended as a compliment ... and as such .. I will stop posting to you.

This isn't the first time you threatened to stop responding to my posts. It's not even the second.

We finally agree on most things and you have to make it personal again. I think you just enjoy doing that.

I am not going to let this innuendo unchallenged. You screwed with my name. I am not taking it "personal." It is personal. There has already been one locked thread this month because of this "Steven Hawking" and other personal nonsense.

You know you refuse to recognize well accepted terms in the appraisal industry and you tell us that all the time.

All the time? After one month of posting, you are the resident expert in me. How nice! As point of fact, I didn't "refuse" to "recognize" the term. In fact, I used the term. I used it in a way that didn't confuse anyone.

 

[PropertyEconomics]

Edd .. you havent paid attention .. IM NOT GOING TO INVOKE A HC ... Im going to appraise the property in Leased Fee Interest, analyize if the Leasehold Interest has any value .. and report my findings to my client in accordance with proper appraisal practice as I see it.

Im not mad at you. You keep making this personal. Please stop doing that. Its an appraisal problem not a personal problem.

I just dont agree with your assessments. Doenst make you a bad guy or me one. Please ....

I dont need to PAY an MAI for an answer such as this. Please tell me you have MAI friends you can converse with that would answer the question for you.

This is NOT a personal thing its just appraisal theory and who the owners are you and I disagree on. Symantics or not . we simply disagree. Its what makes life life.