Permits

[TRESinc]

Remember... The appraiser that does more than is asked is no different than the low fee skippy.

amazing work motto you have there. if that is how your clients value you then you need to improve your product or get better clients.

 

[Ahhhh Yeahhhh]

Im not the one that thinks an appraiser has to pull a permit.

 

[Mike Kennedy]

Subject: USPAP AO-28 / Due Diligence is Required

5. A real property appraiser accepted an assignment to appraise a three-unit residential property. The intended use of the appraisal was for mortgage financing. The client requested that the appraiser not verify the legal status (e.g., compliance with zoning, building codes, use permits) of the three units with municipal officials.

The appraiser withdrew from the assignment because she concluded that the client’s assignment condition limited the scope of work to such a degree that assignment results are not credible in the context of the intended use. The use of an extraordinary assumption about the legal use of the property would not produce credible assignment results in the context of the mortgage financing use.

 

[Mike Kennedy]

The Appraisal of RE

Highest and Best Use Analysis
Pg 334
Legally permissible uses would conform to the land's current zoning classification and local building codes along with any other relevant regulatory or contractual restrictions on land use.

Pg. 335
Testing Highest and Best Use
To test alternative uses for the highest and best use, an appraiser usually applies the four criteria in the following order:
1. Legal permissibility
2. Physical possibility
3. Financial feasibility
4. Maximum productivity

In practice, the tests of physical possibility and legal permissibility can be applied in either order, but they must be applied before the tests of financial feasibility and maximum productivity. A use may be financially feasible, but this is irrelevant if it is legally prohibited or physically impossible.

 

[Ahhhh Yeahhhh]

Here is the problem.

You are an appraiser that doesn't know the difference between a "USE PERMIT" and a building or construction permit.

Yet, you are trying to tell me and a bunch of other wiser appraisers that we should be verifying if a permit was obtained on that roof that was replaced 10 years ago. Or better yet, you are insinuating that we should obtain the ORIGINAL building permit. Hogwash.

Go learn what you are talking about.

 

[Mike Kennedy]

The Appraisal of Real Estate - 12th Edition

HIGHEST AND BEST USE
The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.

 

[Ahhhh Yeahhhh]

The Appraisal of RE

Highest and Best Use Analysis
Pg 334
Legally permissible uses would conform to the land's current zoning classification and local building codes along with any other relevant regulatory or contractual restrictions on land use.

Pg. 335
Testing Highest and Best Use
To test alternative uses for the highest and best use, an appraiser usually applies the four criteria in the following order:
1. Legal permissibility
2. Physical possibility
3. Financial feasibility
4. Maximum productivity

In practice, the tests of physical possibility and legal permissibility can be applied in either order, but they must be applied before the tests of financial feasibility and maximum productivity. A use may be financially feasible, but this is irrelevant if it is legally prohibited or physically impossible.

A building or construction permit doesn't mean that it meets code. There have been many houses where permits were obtained and there were issues upon completion with meeting code. So before you start believing that pulling a permit means the house was built to code... Don't.

What you are quoting is referencing "hypothetical" situations. Legal permissibility is referencing whether it conforms to zoning regulations. Furthermore, your example about the triplex is referencing zoning conformity. This has nothing to do with a building or construction permit.

 

[Mike Kennedy]

Here is the problem.

You are an appraiser that doesn't know the difference between a "USE PERMIT" and a building or construction permit.

Yet, you are trying to tell me and a bunch of other wiser appraisers that we should be verifying if a permit was obtained on that roof that was replaced 10 years ago. Or better yet, you are insinuating that we should obtain the ORIGINAL building permit. Hogwash.

Go learn what you are talking about.

TITLE 8. BUILDINGS AND HOUSING
CHAPTER 2. STANDARDS AND REQUIREMENTS FOR CONSTRUCTION, ALTERATION, ETC., OF BUILDINGS AND OTHER STRUCTURES
ARTICLE 3. APPLICATION OF BUILDING AND FIRE RELATED CODES TO EXISTING BUILDINGS
O.C.G.A. § 8-2-216 (2016)
§ 8-2-216. Continuation of legal use and occupancy
http://www.lexisnexis.com/hottopics/gacode/Default.asp

 

[Mike Kennedy]

A building or construction permit doesn't mean that it meets code. There have been many houses where permits were obtained and there were issues upon completion with meeting code. So before you start believing that pulling a permit means the house was built to code... Don't.

What you are quoting is referencing "hypothetical" situations. Legal permissibility is referencing whether it conforms to zoning regulations. Furthermore, your example about the triplex is referencing zoning conformity. This has nothing to do with a building or construction permit.

Example: Montgomery County, GA

• Sec. 6-1. - Building permit required.
• No construction of a building or other structure shall be commenced without first obtaining a county building permit. Application for said permits shall be obtained from the Tax Assessor's Office in Mount Vernon, Georgia. There will be a charge for all agriculture shelters, $0.10 per square foot for all new and additions to residential structures, and $0.15 per square foot for all new and additions to commercial structures.
  (Code 2003, ch. 4, § 1; Ord. of 2-3-2009, § 1)
  
  
• Sec. 6-2. - Owner responsibility.
• The owner of the property where the construction commences shall be responsible for obtaining the building permit referred to above.
  (Code 2003, ch. 4, § 2; Ord. of 2-3-2009, § 2)
  
  
• Sec. 6-3. - Penalty.
  A fine in the amount of $1,000.00 shall be imposed on the owner of any property where construction is started without first obtaining a building permit. In addition to the fine, the owner will be responsible for all court costs and the costs of collection.
• • Sec. 6-4. - Collections.
  • The governing authority shall be authorized to fine as above provided for by entering executions against the defaulting party's property as provided for in the collection of delinquent taxes and/or by suit, garnishment or any other means for collecting debts authorized by the general laws of this State in any of the courts of the State.
    (Code 2003, ch. 4, § 4; Ord. of 2-3-2009, § 4)
    
    
  • Sec. 6-5. - Purpose.
    The purpose of this chapter is to help provide the County with a means of obtaining information to accurately assess and tax fairly all improvements to property within the County.
    (Code 2003, ch. 4, § 5; Ord. of 2-3-2009, § 5)
    
  https://www.municode.com/library/ga...es/code_of_ordinances?nodeId=PTIICOOR_CH6BUPE

 

[Ahhhh Yeahhhh]

Dude. Seriously?

You are so far out in left field it reminds me of those appraisers who forget that their job is to determine value but instead think they are to do everything else like perform a title search, home inspection, mold testing, and be a structural engineer who draws a architect level sketch.

Read your dang report. Look at item 1 on your assumptions and limiting conditions.

The Appraiser will not be responsible for matters of a legal nature that affect EITHER the property being appraised or the title to it.


Don't you have some permits to pull?