Addressing an addition

[Lee SW IL]

Subject property was a one story ranch. Owner has added a 2nd story. This is not a recent addition. However, the county records show the subject property being a 1 story.

It is necessary for me to research this? If it is, how can I can search for permits without asking the proper authorities without disclosing.

Suggestions?

 

[rtubbs]

Lee, I don't think it's our responsibility to research for building permits. Just call it like you see it. It's a 2 story dwelling and the county records reflect a single story residence. I believe that you can assume that permits were obtained just like you assume that the title is good and marketable. Of course, what I just said may not hold water if it's FHA.

Say good night, Gracie

 

[Ben Vukicevich SRA]

Lee,

Repeat the same info you provided here in your post inside the appraisal report to let the underwriter know what's going on. Then condition the report "subject to" the owner obtaining a letter from the municipality stating that the second floor addition is legal, that a building permit was issued for the work and that a certificate of occupancy was issued at completion. You can pick and choose what you want to use/need in your condition from my sentence above.

In any event, if the work was done illegally, the owner will not get the letter and the municipality will not be alerted- AKA you will be out of trouble with the owner. Without the letter, the loan can not close and you are protected via the hypothetical condition calling for the letter. I use this technique all the time on 2-4 familes if they are not legal uses or even if they are legal non-conforming. You never know if they are legal so require the letter and let the owner have at it....

This will also work if it is an FHA appraisal. Condition for the letter under VC 11G and also transfer it to the Homebuyer Summary for the buyer to see.

Ben

 

[JeffMann]

Lee,
Ben is correct but in certain instances I do not worry about alerting the authorities. It is more important that your are covered and do a legal and proper job than worry about the owner being mad at you. In one case I told the owner I would have to check with the city for permits and he/she cancelled the appraisal. Checking with the proper authorities is most important when the health and safety of the home and/or occupants are at risk. Poor electrical wiring would be a case in point.

It is more important to CYA with due diligence than worrying about the owner.
Jeff

 

[bradellis]

Lee,

"Addressing an addition"-

"Hello, addition"

Sorry, could not resist! I can see Art Carney "addressing" his golf ball right now- "Hello ball!".

Have fun,

Brad Ellis, IFA,RAA

 

[Ross (CO)]

Lee, your last sentence reads with a possible thought that ....if you inquire about proper permits being issued, and the dept. person asks you for addresses and details of the situation....then perhaps that group will send out their field rep who will view the property and now the h/o will be paying more property taxes ---- all because YOU asked those initial questions. Did you get to see the interior or was this a drive-by assignment ? I see at times considerable discrepancies in data that warrant such inquiries. Short of your direct measurement of home (forget that on drive-by's) there can be big diff's between last MLS record, current county assessor, and lastly the local permit-issuing agency if one is so organized and available. They do not all have coordinated and shared databases. I know there are many basements which get finished and (1-car) garages which get converted into increased living area and no permits are ever secured. I do not feel obligated to research all possible permits, yet sometimes the indications are worthy of such a pursuit and for sure my report will speak to the permit/lack-of-permit disclosure. It is certainly possible that our Assessor office will "make a note" about an address that I might ask about, but whether that h/o pays more taxes a year later comes from Assessor follow-up and not my say-so of any kind. Some day, when Joe Homeowner goes for that 4th re-fi, it just might get discovered that his basement and garage are now finished living area ! You report what is there now as best you can, and other people's records may or may not be changed.

 

[Lee SW IL]

Ross - This was an interior inspection, construction quality is equal to the rest of the home, typical for this market.

I am just mentioning in the report, that the subject is a two story, where the 2nd story is an obvious addition. (Subject was a 1960's brick ranch, 2nd floor is frame construction with new vinyl siding, very obvious addition). I am stating in the report, that I have not been able to obtain access if proper permits, or required documents that maybe required for such addition. Home is being appraised assuming it is legal residence.

Thank you for your replies and thoughts.

Lee

 

[Lee SW IL]

Ohh, I was orginally concerned about digging too deep to find something illlegal, and also digging for something that I don't know enough about. Then the homeowner come back on me for violation of confidentiality. (USPAP).

Thx again. Lee