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Change "Subject to" to "As-Is:

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Ed

Thread Starter
Junior Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I recently completed an appraisal that the subject has 3 parcels of ground all on the same Deed. However, all 3 parcels have 3 different parcel numbers. I disclosed this to the client prior completing the report. They said to appraise only the parcel with house and the lot it sits on. I explained that there are other improvements (inground pool, garage) that I can not determine which parcel they are on as I'm not a surveyor. As a result, I completed the report "subject to" all parcels combined to ine Deed (already done) having only one parcel number.

The client has asked me to change the report to "As-Is" as all parcels are on one Deed and I've accurately defined the parcels on the report.

Can I legally or should I make this change? Any advice.
 

Joe Milla

Junior Member
Joined
Feb 13, 2007
Professional Status
Certified Residential Appraiser
State
Massachusetts
Are there 3 separate deeds for these , are they buildable lots, are they taxed separately? just looking for a little more info.
 

Joe Milla

Junior Member
Joined
Feb 13, 2007
Professional Status
Certified Residential Appraiser
State
Massachusetts
sorry, should have read your post better. had one similar to yours. separate parcel # for "unbuildable land (taxed separately) and parcel with improvements thereon (taxed separately) both on 1 deed. spoke about it in report, combine both parcels and tax amount (appraised as is) no problem.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Why do they have to have one parcel number? Assessor numbers are only for record keeping in taxing property.
 

Ed

Thread Starter
Junior Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
My thought was, if they sub-divide the lots at some point. Which could be done. The client lended money on 19+ acres and next week they sell off a 13 acre tract w/it's own parcel number. Now the subject is ony the house and 6 acres. If the lots were combined to only one parcel number it would better protect the client. Just a thought.
 

int1st

Freshman Member
Joined
Aug 6, 2007
Professional Status
Licensed Appraiser
State
California
Just as a thought, can't you do a 1004D or 442 and explain that the prop information has changed. I know that lenders, etc. can get dumb with their requirements so would doing a 1004D and notating the change suffice?
 

Ed

Thread Starter
Junior Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Just as a thought, can't you do a 1004D or 442 and explain that the prop information has changed. I know that lenders, etc. can get dumb with their requirements so would doing a 1004D and notating the change suffice?


Not quite sure what your implying?
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
The long and short of it is that you have to know what actually exists first before you proceed. Three separate assessor's parcel numbers, or three parcels listed on a deed, is not enough to determine if the parcels are single and separate. Additional information may have to be considered, such as zoning, ownership of the parcels, and other issues that may be specific to your area.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
You are appraising a property as of a given date, Right? On that given date the property consisted of three parcels on one deed, Right? The deed covered all parcels and all improvements, Right?

Your value should be an 'as is' value for the entire property you appraised, on the date of inspection.


What happens in the future is really of no consequence to you! What if the property burns down, then your appraisal from that certain date is flawed, isn't it? What if the owners subsequent to the appraisal sell off the property in three sections, if it's legal and can be done, so what? Your value as of the date of inspection is the correct value for that particular point in time.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
I recently completed an appraisal that the subject has 3 parcels of ground all on the same Deed. However, all 3 parcels have 3 different parcel numbers. I disclosed this to the client prior completing the report. They said to appraise only the parcel with house and the lot it sits on. I explained that there are other improvements (inground pool, garage) that I can not determine which parcel they are on as I'm not a surveyor. As a result, I completed the report "subject to" all parcels combined to ine Deed (already done) having only one parcel number.
I think the root of the problem is here is that you didn't pay attention to the appraisal problem as described by the client. They asked for an appraisal of one specified parcel, and one parcel only. When you reached the point of realizing that the improvements might be on more than one parcel, that there might be a larger parcel (a single property made up of several parcels dedicated to a single use), you should have stopped, and communicated further with the client. I think you made a mistake changing the assignment conditions unilaterally and imposing a critical assumption. Even though you are not a surveyor, there may be a recorded survey that answers the question. In any case, as lenders typically need the legal specs of the collateral defined and not assumed, that assumption is not a condition the appraiser should impose on the assignment alone.

You are appraising a property as of a given date, Right? On that given date the property consisted of three parcels on one deed, Right?
Not right. Owenership rights and including the right to transfer individual parcels out of a multiple-parcel holding are terminated because the parcels previously transfereed on one deed instead of multiple deeds.
 
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