CA Water-Heater As-Is ?

[ZZGAMAZZ]

Assignment is a conventional re-fi of a CA SFR.

Client Engagement reads "Any Health/Safety/Structural repairs must be completed 'Subject To' with exception of peeling paint, CO/Smoke detectors, & water heater strapping," with a C2C in the Cost Approach, and a statement that CO/Smoke detectors and water heater strapping are state requirements . . . "

Peers: Do the statements make sense, or are they contradictory?

I'm so accustomed to completing reports "subject to" the absence of double-strapping that I can't understand why the client would condition the report "As Is."

 

[Charles West]

Would that protect you if the water heater fell on little Suzy during the earthquake that happens the day after you are there? Not sure. I always did that subject to and let the underwriter blow it off if they want to.

 

[CANative]

Acceptable assignment condition. The lack of seismic strapping is not an immediate threat.

Do it their way. Keep the engagement letter in your work file. Describe the condition and any impact on your opinion of value. $100 to strap.

 

[glenn walker]

All the lenders I work for want it "subject to " BUT if that particular lender says "as is" just report what you observed then fine. Like CAN said place the engagement letter in your work file and be done. My guess is the UW will be calling you out for a 1004-D in a week or or either way : )