1004D on New Construction - should Certificate of Occupancy be attached to report?

[The Scholar]

1004D on New Construction - should Certificate of Occupancy be attached to report? I feel that if I don't attach a copy, I am assuming liability that everything was completed according to plans and specs. What are your thoughts?

 

[glenn walker]

1004D on New Construction - should Certificate of Occupancy be attached to report? I feel that if I don't attach a copy, I am assuming liability that everything was completed according to plans and specs. What are your thoughts?

If you have one in my area they are often not available for weeks or months. I you have one yeah attach it otherwise if the property is completed to its plans and Specs its completed and you have done your job and I would not spend one minute worrying about it.

 

[The Scholar]

If you have one in my area they are often not available for weeks or months. I you have one yeah attach it otherwise if the property is completed to its plans and Specs its completed and you have done your job and I would not spend one minute worrying about it.

Well, that's what I see as the problem. I don't think that an appraiser is qualified to certify that a property has been completed to plans and specs because he/she is not a building inspector and isn't an expert on local building codes either.

 

[J Grant]

Well, that's what I see as the problem. I don't think that an appraiser is qualified to certify that a property has been completed to plans and specs because he/she is not a building inspector and isn't an expert on local building codes either.

The client knows you are not a building inspector and not an expert on local building. All they expect from a final is the house habitable and finished for move in ready. The C of O is up to the builder or closing title agent and lender. The 1004D inspection form does not ask about the certificate of completion, so don't volunteer to get into something outside what you are engaged to do.

 

[Tom D]

the house was inspected many time by l&i during construction, so any problem would have been corrected by the time the drywall is done. assuming they got permits.
nothing i know would stop that certificate, by the time you see it, from being issued.

 

[Tiffany Gibbons]

Well, that's what I see as the problem. I don't think that an appraiser is qualified to certify that a property has been completed to plans and specs because he/she is not a building inspector and isn't an expert on local building codes either.

That is the lender's responsibility to get from the builder, county, code, etc. Not you. VA will request lender to supply it if necessary.

 

[sputnam]

Well, that's what I see as the problem. I don't think that an appraiser is qualified to certify that a property has been completed to plans and specs because he/she is not a building inspector and isn't an expert on local building codes either.

If that's the case, then, appraisers are also not qualified to state that the subject property conforms to zoning, or indicate whether it's in a flood zone or not, or a number of other things that we regularly do.

If you have a copy of the CO and you want to include it.... fine. If you know that the CO has been issued and you want to say that.... fine. All you are being asked to do is to indicate whether or not the subject property is completed in the manner that your appraisal expected.

 

[Jayjay25]

I make all my new construction appraisals subject to completion per builder’s plans and specifications AND a certificate of occupancy issued by the town. Most building contracts include obtaining the CO because if the town doesn’t issue the certificate of occupancy the house can’t be occupied therefore it is not considered 100% complete. Some lenders require the CO to be included with the 1004d. Other lenders require all construction items be completed and will attach the CO to the file along with the 1004d which states the improvements have not been completed per the requirements in the original appraisal due to the lack of the CO.

 

[J Grant]

I make all my new construction appraisals subject to completion per builder’s plans and specifications AND a certificate of occupancy issued by the town. Most building contracts include obtaining the CO because if the town doesn’t issue the certificate of occupancy the house can’t be occupied therefore it is not considered 100% complete. Some lenders require the CO to be included with the 1004d. Other lenders require all construction items be completed and will attach the CO to the file along with the 1004d which states the improvements have not been completed per the requirements in the original appraisal due to the lack of the CO.

I have never had a lender ask for a co of o as a condition for a 1004D. Maybe your lenders " require it" because you decide to make the 1004 D form subject to the C of O?

 

[Jayjay25]

I have never had a lender ask for a co of o as a condition for a 1004D. Maybe your lenders " require it" because you decide to make the 1004 D form subject to the C of O?

Correct. If it’s part of the contract and the house can’t be occupied until it’s issued then the house is not complete without the CO. If I say the house is 100% complete and the building inspector finds issues and won’t issue the CO then that puts the lender and appraiser in a very bad situation if they closed the loan.