Advice duplex made into quadruplex - no permit (also posted under FLorida)

[sputnam]

If your Client asked for market value, then you have to appraiser the property at it's highest and best use. Is a quadraplex permissible? If not, you're question is answered.

Sorry for the grammatical errors. I know better... really. I just can't type and it gets away from me.

 

[Terrel L. Shields]

Sorry for the grammatical errors.

Us is the grammar police if you haven't noticed.

 

[Tom D]

Us can't agree 100% on anything. Well, except for every AMC stealing money from the appraiser.

 

[Sadie]

Ask your client how to proceed IMO ,

As for your own decision wrt HBU, I would look at the zoning - is it legal to have a four-unit improvement on the lot ? If the four units are legal, but two were built with no permit, Fannie and Freddie allow non-permitted dwellings, idk about for small income properties. What is the construction like, is it on sewer etc? Odd that they did not get permits

What kind of HC makes sense in a situation like this? If you are going to use an HC, then it should be subject to that HC ( not as is ). ask the client about that as well.

FNMA allows for non permitted work, but IMO 2 whole units is a lot of unpermitted work. The problem might be local planning/building Dept might lien the property to bring it up to code, as is retroactively permit the units. This always involves fines along with permiting fees. Then there is the local housing authority who may get cranky with people living in unpermitted units. You can value it, but need to with HC getting the units permitted so title can transfer or for the removal of the units. Or you can required the units to be disabled and call them guest houses.

 

[Panncake]

Issue resolved, owner's had a permit although at first it was not disclosed. Thanks.

 

[Sadie]

Issue resolved, owner's had a permit although at first it was not disclosed. Thanks.

Darned owners! Hiding stuff like that.

 

[Fernando]

Contact client/lender of situation in how to proceed.
One time I had an illegal unit converted in the SFR which also had an ADU over attached garage.
Lender required owner to detach the gas hookup in kitchen in the illegal unit.
Had to change my report significantly. Ugh.

 

[Zoe]

I am appraising a duplex, owners added an additional two units in a new building, no permits pulled (both per owners and tax records) I suspect the two new units can not be included in the appraised value since there are no permits. Need advice how to proceed. Thanks.

You definitely need to talk to local code (economic and planning development) on that one. You don't want in the middle of that fight. Tell your client what code (planning and development) has told you.

 

[Zoe]

Tax assessor office knows a bunch about building code, and they can be a good source also. You protect yourself in this situation.