1004 or 1073?

[bmoney]

Hello,

I received a request to appraise this property. The lender ordered a 1004, however after reading the legal description I wasn't so sure. Any recommendations? Thank you, Jon

VILLAGIO AT HAPPY VALLEY CONDOMINIUM MCR 915-34 UNIT 102 (PLEASE NOTE: FOR LEGAL DESCRIPTION REFERENCES REGARDING THE PERCENTAGE OF OWNERSHIP OF THE COMMON AREA(S) PLEASE REFER TO THE RECORDED COVENANTS, CONDITIONS AND RESTRICTIONS (CCR) ASSOCIATED WITH THIS PLAT.)

 

[Fernando]

It's a condo. Let client know.

 

[Tom D]

Legal and title companies get it right. See if they got a title report.

 

[Fernando]

Legal description is final word whether to use 1004 or 1073.

 

[bmoney]

Thank you.

 

[Zoe]

This might help you:

https://entp.HUD.gov/idapp/html/condlook.cfm

It is HUD website. Notice the .gov.

You can also just go to HUD.gov website and search.

 

[bmoney]

Will do, thank you.

 

[Zoe]

I don't get paid anymore for 1073 vs 1004. Unless it is a new development, the 1073 is about the same as 1004. Sometimes if all my comps are in the condo development, it is easier than a 1004.

 

[sputnam]

The legal description says 'Condominium' and 'Unit' in describing the subject property. It is a condominium. If it is a GSE loan, use the 1073. If it's not a GSE loan, you can use any form the client wants.... USPAP is silent on the question of which form to use... but, it's a very bad idea. I would either use the 1073, a GP form, write a narrative, or if the Client insist on a 1004, decline the assignment.

The likelihood is either the Client didnt' realize that the property is a condominum or they inadvertently requested the 1004. Talk to them.

 

[Fernando]

I don't get paid anymore for 1073 vs 1004. Unless it is a new development, the 1073 is about the same as 1004. Sometimes if all my comps are in the condo development, it is easier than a 1004.

I charge more for 1073 because you have to do more work especially contacting HOA to verify owner occupancy.
Some lazy appraisers just take photo of the condo building which I do but I look at each condo comp location and adjust.