1004 or 1073?

[Dublin ohio]

Some lazy appraisers just take photo of the condo building which I do

Wow! In another thread Fern says he is a racist and in this one he admits he's lazy. Just wow!

 

[Fernando]

Wow! In another thread Fern says he is a racist and in this one he admits he's lazy. Just wow!

Must be temporary dementia. I better stop.

 

[Airstream]

Depends…If it is a site condominium the 1073 is not descriptive of the property and frankly doesn’t apply. For example I just did a 2.5 million dollar sale that had a site of 2.6 acres. Yet the legal description had the word “condominium”. Every single property in the project is different and has it’s own site with their own value and site dimensions. Try filling that out in the 1073 description of the complex. The banks that have ordered these want them on the 1004. They really function more as a PUD. And frankly their main competition comes from other single family detached homes and not other condominiums.

 

[Fernando]

Depends…If it is a site condominium the 1073 is not descriptive of the property and frankly doesn’t apply. For example I just did a 2.5 million dollar sale that had a site of 2.6 acres. Yet the legal description had the word “condominium”. Every single property in the project is different and has it’s own site with their own value and site dimensions. Try filling that out in the 1073 description of the complex. The banks that have ordered these want them on the 1004. They really function more as a PUD. And frankly their main competition comes from other single family detached homes and not other condominiums.

There's a large condo multistoried complex around here that has some townhome style units.
I only done appraisals for condo units there. If I had to appraise one of those townhomes in the project, I would get some townhome style comps nearby.

 

[sputnam]

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.)

NVM... I already commented on this.

 

[Mile High Trout]

Depends…If it is a site condominium the 1073 is not descriptive of the property and frankly doesn’t apply. For example I just did a 2.5 million dollar sale that had a site of 2.6 acres. Yet the legal description had the word “condominium”. Every single property in the project is different and has it’s own site with their own value and site dimensions. Try filling that out in the 1073 description of the complex. The banks that have ordered these want them on the 1004. They really function more as a PUD. And frankly their main competition comes from other single family detached homes and not other condominiums.

Sounds like a leasehold estate. Those do go on the 1004, even if they're modulars and not stick or manufactured.

 

[Mile High Trout]

Unless it's a lease hold estate, if the title anywhere says condo, you must use the condo form.

Even if they're townhomes with owned lands.

Condo is an ownership type. The language appears in legal because in addition to the individual sites, there is also commons area lands which require HOA dues and a PUD structure to maintain.

Everything with community commons elements which are private and not maintained by the city/county are probably going to be on condo form.

For appraisers the difference can be negligable. You can often successfully comp a standard townhome which you'd complete on a 1004 form, against a similar townhome which you must complete on the condo form. The form difference is due to insurability requirements and packaging loans. Because there are different legal requirements for servicing in community developments.

 

[alebrewer]

The GSE's will allow site condos and HPS properties to be reported on the 1004. IMO, however, this is inappropriate, as there is no site 'under the house'. All property types where ownership of the land is held in common, IMO, should be reported on the 1073 (assuming the intended use is for mortgage lending purposes, that is).

 

[Mile High Trout]

The GSE's will allow site condos and HPS properties to be reported on the 1004. IMO, however, this is inappropriate, as there is no site 'under the house'. All property types where ownership of the land is held in common, IMO, should be reported on the 1073 (assuming the intended use is for mortgage lending purposes, that is).

Sorry, what's an HPS? Never heard that.

 

[alebrewer]

Sorry, what's an HPS? Never heard that.

Sorry - HPR. I hadn't heard of it prior to a few weeks ago. It's a relatively new ownership arrangement that functions very similarly to site condos. Called a Horizontal Property Regime.