1004 or 1073

[Charles Witt]

I am doing an appraisal assignment of a townhome where the land is owned but a condo association exists to maintain the road and open space with this unit owning 1.78% interest of these areas.
However, these 60 lots (22 x 137) are owned individually with all exterior maintenance and upkeep of each dwelling and lot by the individual homeowners, just like in a any typcial townhome unit.
I feel I should use the condo form but all of my fellow appraisers think I should use the 1004 with solid explanation of the setup. I have used the 1004 in the past but have some reservations.

What are your thoughts?

 

[Joyce Potts]

A townhouse can be either a condo or a single family owning the land underneath.

I don't think it's a condo association, it's a probably a homeowners association.

If the legal reads Lot 2--it goes on the 1004 form.

If the legal reads Unit 2--it goes on the condo form.

Joyce J. Potts, SRA

 

[JUSTIN SAVINO]

If the lots are individually owned. Then It's a PUD. I believe. It should then go on 1004 form and fill in the the PUD info accordingly

 

[Michael Tipton]

What does the subject's legal description say about the type of ownership?

 

[Charles Witt]

Legal says, Unit #47, Bay Tree Townhouse Condominiums.....answered my own question! Its a condo...

 

[Couch Potato]

Use a 1004 with condo description addendum.

Legal says, Unit #47, Bay Tree Townhouse Condominiums.....answered my own question! Its a condo...

Sounds like yet another "site condo" type of property. I would use a 1004 with condo description addendum. (If you use WinTOTAL or ClickFORMS you have an addendum form specifically design for this type of property by using a portion of the 1073 as a separate page.) The problem with using a 1073 is that it was designed with a "typical" condo in mind and does not allow for adequate description of the subject property. FNMA specifically authorizes the use of the 1004 form for condos with land assigned to them.

 

[Otis Key]

Ditto Greg's post.

 

[Michael Tipton]

Site value and pro rata share of common elements is an issue with using the 1004 form for a condo unit.

 

[moh malekpour]

I just had the same situation. Attached units, two stories, private streets, common areas, one main address for 141 units,each with specific #, HOA, all of them listed in MLS as condos but the legal description has individual LOT # for each unit. It says lot # of tract xxxx. the land use in the tax records says SFR, the zoning says R3, multi residential units. I used 1004 form for this and checked the pud box and filled the pud section on the page 3 to give them some more information. I made more comments on a separate page about why I considered it a SFR PUD and send it out.
I have had similar properties like this in the past and used 1004 forms , although they walked like a condo and talked like a condo but they were attached SFR puds.

 

[Don Clark]

1073 for all condo's

Charlie,

If it is legally a condo, and it is for mortgage purposes, use the 1073. The form ask is it is attached or detached. A 1004 is not for condo's if it is for mortgage purposes. It will get kicked back to you somewhere down the line. Forget the PUD stuff. In our part of the country a condo is a condo as long as the legal description says it is a condo.