Can we appraise a house on 5 acres that is part of a larger tract?

[Bill Featherstone]

Is it required to get a survey?

"A legal description of the portion being appraised is required."

Who is qualified to write the legal description?

Is a survey also required, as the legal gives no assurance that the improvements are actually situated on the legal?

 

[Mr Rex]

For most jurisdictions, a surveyor must do the survey and it has to be recorded to be a legal description. YMMV

 

[Terrel L. Shields]

It's a USPAP issue, not an FHA issue. I can't find the Q&A USPAP questions that refers to it, that's were I though I saw it.

PE is right, no it is not a USPAP question. USPAP allows one to appraise a part or portion of an estate. Fannie does not.

Who writes the legal? A legal person....typically a surveyor, abstractor, or lawyer will have to write the legal. I would not accept that responsiblity upon myself. Further, that legal has to include not only the improvements being appraised but a legal access to it, and it implies that the division, if taken, is in fact legal (ie.- not prevented by zoning.)

If the lender hands you a legal description, then you can use it, but you need to caveat the source, and extra. assumptions would relate to the assumption of access, legal division, etc.

For instance in my county it is not legal to parcel out a tract of less than 5 acres without approval of the zoning commission.

 

[Michael Tipton]

Complex assignment?

FIRREA Sec. 1113 (2) states the following:

1-to-4 unit, single family residential appraisals may be performed by State licensed appraisers unless the size and complexity requires a State certified appraiser.
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http://www.appraisalfoundation.org/s_appraisal/bin.asp?SID=1&DID=197&CID=14&VID=2&DOC=File.PDF​

I am not familiar with your state's regulations, however, my concern would relate to the farming operation that may exist at the subject. My state limits CRs and the limited number of licensed appraisers to 1-4 residential properties.

In my market, a 25 acre +- rural property probably would qualify as an income producing property requiring the services of a Certified General licensee.​