Client requires Sink hole comment.

[Mountain Man]

Have a little spezling error... no stink holes were noted.
Even if sued: No your honor, I literally meant that I did not see any stink holes. Smelled a few as the owner had Mexican for lunch, but none were sighted.

Funny this came up. Was talking with a CA buyer about investment property here. She asked about sink holes.... long silence. M'am, have you looked at a map of north Georgia? My territory goes from the foot hills of the Chattahoochee to the Appalachian Mountains. LOL

 

[sputnam]

"Appraiser is not expert in the geology of the subject neighborhood however, no have been observed by the appraiser during visits to the area."

 

[Mike Kennedy]

I guess, what I am worried about is the liability if a sinkhole swallows the subject in ten years. Any attorney could point to that very statement in my report, stating the appraiser did not notice a sinkhole or know of any in the area.
I walked around the property but would a divot in the lawn be considered a possible sinkhole. I don't know and would not know how to spot a sink hole other
than one that has already formed and called a sink hole by the news. They are random in Florida. Nobody knows or otherwise there would not be any houses falling into them.

At the time of site observation no readily visible existing or prior sink hole conditions existed on or adjacent to the subject's site. Cursory visual observation of the immediate neighborhood, immediately after the subject site visit also did not indicate current or prior sink hole conditions. Interviews with the property owner, local realtors, and the governing municipality did not indicate any prior or current conditions which would adversely impact occupancy, marketability or current market value as of the Effective Date of Appraisal. Supporting data sources are necessarily assumed reliable. Should the Client have concern regarding that information, direct contact with the Municipality, Local Realtors, et all is recommended.

Pursuant to the assignment condition requiring comment on possible natural disasters which may currently have, or previously have had negative impact on the subject site and/or immediate neighborhood, evidently the Client is aware that sink hole predisposition exists throughout the State.

The Appraiser's observations above specifically reflect readily discernable conditions at the time of site and neighborhood visits - ONLY. Should sink holes have occurred after the site visits were complete, they would have had no bearing on the opinions of the site and neighborhood at the time of visual observation by the Appraiser.

Should the Client have concern in this regard qualified geological experts should be consulted. Should the Client provide additional expert information that non-visible or below-grade sink hole conditions existed prior to, or at the time of the appraisal observation, re-appraisal may be required. Should this occur, re-appraisal will be a new assignment.

 

[Rich Heyn]

For what it's worth:

http://fcit.usf.edu/florida/maps/galleries/sinkholes/

http://www.orlandosentinel.com/news/nationworld/os-florida-sinkholes-map-20130812,0,4062236.htmlpage

 

[Papoua Jose]

Here's a link to an interactive map of FL sinkhole activity.

http://www.orlandosentinel.com/news/nationworld/os-florida-sinkholes-map-20130812,0,4062236.htmlpage

 

[ctapraser]

Here is the statement the client is requiring to put in reports.

All reports must address if there has been any visible or known sinkhole activity​

for subject property as well as immediate neighborhood.

This is too much. I have lived in Florida for a long time and nobody knows when a sinkhole is going to develop. There was one about 6 to 12 months ago, where a guy was sleeping and got swallowed up by the sink hole. I am sure if he knew if it was visible, he would not have plunged to his death. Sink holes just suddenly appear.

I called the client and told them I am not licensed nor certified to make such a guarantee. I also explained, I will not assume such a liability, so we are currently at a stalemate.
They will not accept my statement that I lack the training and license to discuss any potential sink hole activity in the subject's market area and told them to see statement #5 on page 4 under limited conditions.

The appraiser did not see any wifes, girlfriends, boats, classic cars, or teenage college students on the subject property or within the immediate neighborhood.:icon_mrgreen::icon_mrgreen::icon_mrgreen:

(I know it's not PC but)

 

[redfish]

For any of you appraisers that completed FHA appraisals prior to the end of the VC sheet requirements you have already exposed yourself to mountains of liability (based on what is being posted in this thread).

VC-1 (a)

"Surface evidence of subsidence/sink holes"


Answer the question move on and have a nice day.

 

[BRCJR]

None noted.

 

[Terrel L. Shields]

is not expert in the geology of the subject neighborhood however, no have been observed by the appraiser during visits to the area."

The problem is that a large sinkhole can be subsiding for months or years prior to collapse. A trained expert might shoot topographic points and detect a slight sag, a foot or less even, that is not visible with the naked eye. You are placing a lot of liability upon yourself.

So I would caveat the situation very carefully. "The appraiser sees no obvious sinkholes on the property however, the appraiser is not a trained professional in the art of sinkhole detection. It is recommended that the client seek the advice of a trained professional in the field."

 

[Mike Kennedy]

"Other Hazards
When the appraiser has knowledge of any hazardous condition (whether it exists in or on the subject property or on any site within the vicinity of the property)—such as the presence of hazardous wastes, toxic substances, asbestos-containing materials, urea-formaldehyde insulation, radon gas, etc.—the appraiser must:
• note the hazardous condition in the appraisal report,
• comment on any influence the hazard has on the property’s value and marketability (if it is measurable through an analysis of comparable market data as of the effective date of the appraisal), and
• make appropriate adjustments in the overall analysis of the property’s value.

Note: Fannie Mae does not consider the appraiser to be an expert in the field of
environmental hazards. The typical residential real estate appraiser is neither expected
nor required to be an expert in this specialized field. However, the appraiser has a
responsibility to note in the appraisal report any adverse conditions that were observed during the inspection of the subject property or information that he or she became aware of through the normal research involved in performing an appraisal."

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Special Appraisal Considerations
July 30, 2013
Printed copies may not be the most current version. For the most current version, go to the online version at
https://www.fanniemae.com/singlefamily/originating-underwriting. 567