1004D-What 'Extent of Completion' is Complete

[Tumbuktu]

Certificate of Completion
Have the Improvements been completed in accordance with the requirements and condition stated in the original appraisal report

Original Appraisal Report
Subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been
completed

In a new construction. Would 'Improvements have been completed' imply:

• Property is 100% ready to be handed over to the owner
• Builder has done whatever was needed.
• Owner can move in even on the day of inspection.

OR

Improvements can still be complete, if at the day of inspection:

• Property is generally complete but it has not been cleaned (has boxes, cannisters, bricks etc. )
• Workers are in the property (Painting, fixing etc.)
• Owner cannot move in at the day of inspection

Should the benchmark for completeness be 'Owner can move in Immediately, even at the day of inspection'

As always, guidance and feedback would be appreciated.

 

[J Grant]

It can in my experience be either one. Most lenders will accept a property that is 98% complete. If a few misc things remain to be done, take photos and describe them. If the lender chooses not to accept that, then they will order another 1004 D and you will have to return again.

"On the day of inspection, the dwelling was complete and the landscaping finished. There was still some miscellaneous paint and clean-up work being done on the inspection date, though the house is habitable."

Idk what that means the owner cannot move in at the day of the inspection. The form is not asking that. If the buyer does not even own the house yet, how the ** would they be moving in?

 

[Tumbuktu]

owner cannot move in at the day of the inspection

What I meant was 100% ready, clean and spotless. (condition it is going to be in, when the owner/buyer moves in). It is usually the condition when builders are ready to do Walk-Thru.

 

[J Grant]

What I meant was 100% ready, clean and spotless. (condition it is going to be in, when the owner/buyer moves in). It is usually the condition when builders are ready to do Walk-Thru.

whatever. Clean and spotless is what most buyers want but it is not part of our assignment as a condition for "complete " wrt the date of our inspection.

 

[J Grant]

Does the 1004 D form ask if the property is clean and spotless?
No.
So why make it into something it is not ???? Appraisers it seems do this a lot, stick in all kind of extra things that they are not even asking us for

Most contracts, in fact, keep it general, often using a phrase such as the property will be delivered "broom clean", meaning it has been deaned up but only to a general level. Move-in day the movers are tramping in and out dragging stuff all over the floors so it has to be cleaned up after them anyway. FWIW.

 

[Tom4value]

Certificate of Completion
Have the Improvements been completed in accordance with the requirements and condition stated in the original appraisal report

Original Appraisal Report
Subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been
completed

In a new construction. Would 'Improvements have been completed' imply:

• Property is 100% ready to be handed over to the owner
• Builder has done whatever was needed.
• Owner can move in even on the day of inspection.

OR

Improvements can still be complete, if at the day of inspection:

• Property is generally complete but it has not been cleaned (has boxes, cannisters, bricks etc. )
• Workers are in the property (Painting, fixing etc.)
• Owner cannot move in at the day of inspection

Should the benchmark for completeness be 'Owner can move in Immediately, even at the day of inspection'

As always, guidance and feedback would be appreciated.

This is a good question. However, I am a stickler for wording. “Have the improvements been completed….?” If the property is complete, it is done. The builder’s/cleaner’s personal property is no concern of mine. They are not going to close and let the owners move in with their personal stuff. It will be gone.

Now, I have used your criteria (of buyers moving in) when I encounter a builder who thinks “almost” done is the same as “done”. I frequently get asked, “oh, come on! Are you really going to beat me up over a shower head not being installed?” I always answer with, “will the buyer paying you $800,000?”

 

[Surf Cat]

Do the planning / building departments in your municipality require a C of O (Certificate of Occupancy)? On a new build over my way.....that's the thumbs up. I have however, been shown a C of O by the builder and seen what you're describing. Empty bags of stucco, powder on the ground, saw horses, misc. tools strown about. I just take photos and explain and send it in. If the client wants to send me out again to show it's cleaned up, it's another 1004d.....more income for me.

 

[Terrel L. Shields]

Do the planning / building departments in your municipality require a C of O (Certificate of Occupancy)?

I wish every remodel and new construction required a certificate of occupancy and take the monkey off the appraiser's back. In my experience, however, if under some threshold (say $500), the lender will accept minor missing items. The worse I encountered was a countertop that the installer broke and they were awaiting a replacement and installed a temporary Formica top and they did warn me of that. But it is done and the buyers were going to move in and it would take another 2 weeks to get the new top. The money was escrowed by the lender. And the additional $2,000 or so was waived.

 

[glenn walker]

Broom Clean : ) LMAO

 

[J Grant]

Broom Clean : ) LMAO

that is what a lot of sales contracts say