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Certificate of Occupancy for new contstruction final inspections?

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
New construction. Do you require certificate of occupancy before you do the final inspection? I always had and now Im getting push back from a client who says other appraisers on the panel dont wait for it. I talked w two of my collegues on their panel and one said no, she doesnt reqiure it and the other one said "sometimes" WTH that means, IDK. Anyway....DO YOU??
No. My job is to value the home and at final see and photo it is complete . Borrower can deal with making sure C of O is there so they can move in. Not my problem...one assumes it is granted for title passing
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
What do you check on page one for assumed occupancy under the hypothetical condition that the construction is complete?
 

Boxkite1

Freshman Member
Joined
Sep 20, 2019
Professional Status
Appraisal Management Company
State
New Jersey
New construction. Do you require certificate of occupancy before you do the final inspection? I always had and now Im getting push back from a client who says other appraisers on the panel dont wait for it. I talked w two of my collegues on their panel and one said no, she doesnt reqiure it and the other one said "sometimes" WTH that means, IDK. Anyway....DO YOU??
I usually invoke an extraordinary assuption to the effect that it is assumed that the improvements have received a permanent certificate of occupany from the appropriate government entity and if not it may have an impact on the opinion of value. I have run across temporary C.O.'s which usually identify any defects.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What do you check on page one for assumed occupancy under the hypothetical condition that the construction is complete?
What is assumed occupancy?
Page one asks to identify who is occupant as of eff date/inspection: The choices are occupant, tenant or vacant - Check one. New construction is typically vacant so gets marked vacant.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
What is assumed occupancy?
Page one asks to identify who is occupant as of eff date/inspection: The choices are occupant, tenant or vacant - Check one. New construction is typically vacant so gets marked vacant.
No. proposed construction assumes occupancy by the borrower. It's a HC that the subject is complete and occupied by the borrower.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
No. proposed construction assumes occupancy by the borrower. It's a HC that the subject is complete and occupied by the borrower.
I make it HC subject to completion. I've never made an HC subject to completion and occupancy by borrower. C1 is new construction, never previously occupied, the subject is vacant (no occupant) at inspection. A borrower is purchasing the property, though we assume they will occupy it, that is up to them and their life plans/ up to mortgage lender on the loan app to specify the borrower will be an owner occupant ,
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
What is assumed occupancy?
Page one asks to identify who is occupant as of eff date/inspection: The choices are occupant, tenant or vacant - Check one. New construction is typically vacant so gets marked vacant.
New construction assumes that the construction is complete as of the effective date and the borrowers are the occupants.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
New construction assumes that the construction is complete as of the effective date and the borrowers are the occupants.
Where does it say that on the URAR? It only says appraisal can be made the dwelling is subject to completion. I might assume the borrower will occupy, but the appraisal asks status at inspection. Do you write vacant, or occupied on new C 1 construction for the URAR box? ?

The client hires me to go out and inspect the dwelling, that it is finished and habitable ( ready for occupancy) to satisfy the HC

I have never been asked by a client to go back and check later that the borrower moved in and is occupying it. I have heard of insurance companies, or others doing that however.
It is a lender obligation to qualify the borrower as an owner occupant but not my job as an appraiser to enforce it. .I report the status of property at time of inspection occupant, vacant or tenant
 
Last edited:

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
New construction (or any construction ) assumes a C of O, permits were pulled , work done to code at the time.. Not our job to verify it unless part of assignment condition.

Who the occupants are we check the status of that on the date we inspected.

Qualifying the borrower as owner occupant is the lender obligation and up to borrower to fulfill. Why are appraisers willing to volunteer for all kinds of roles and the liability that comes with them that are outside our capacity and hire? Does a home inspector or termite inspector volunteer to also provide a value opinion? No.
 
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