Combining Condos

[Chase UW]

Borrower has legally combined 2 condo units into one. Two APN’s with one address. Do you think this will be a problem?

Is there anything special that the appraiser will need to do?

 

[Meandering]

What's "legally combined" if there are two different APN numbers????

knocking out a joining wall, is not necessarily a "legal" combination.


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[KHS445]

Is there anything special that the appraiser will need to do?

Yup, pull his/her hair out trying to find appropriate comparables.

Is there a reason the two APNs have not been combined into one? I would suggest checking with the local taxing authority to see if there is a problem combining the two. Off the top of my head I can't imagine any legal issues related to this. My guess is zoning allows for multiple tenant housing and single family residences. So there is probably not a zoning issue. In my experience the Condo Association may have some say or restrictions regarding the modification of a unit(s) so as long as the Association doesn't have an issue I can't see anything from a legal (general) standpoint. Check with local building and zoning to make sure any and all of the changes have been properly permitted and inspected.

 

[Terrel L. Shields]

Is there anything special that the appraiser will need to do?

drinking might help, can you say "no comps"?

 

[Howard Klahr]

Two APN’s with one address. Do you think this will be a problem?

multiple APNs and one address happen all the time

Is there anything special that the appraiser will need to do?

Yes, the appraiser will need to appropriately evaluate the highest and best use and correctly perform the valuation accordingly.

 

[Kitarkus]

multiple APNs and one address happen all the time

In my area...yes...it happens all the time....typically followed up by what we call a seg merge by the County...where the units are combined into a single tax id# or parcel ID. Even if a COOP....the corporation typically combines the "parcels" so to speak...combining the separate owned "shares" into one. It has been my long understanding that Fannie/Freddie cannot and will not accept multiple parcels on a single URAR. Lender opinions vary...but Fannie's opinion...in my experience...does not. I am human and thus prone to error....but I try real hard to stay up to date. The URAR form anyway...is intended for a single parcel.

 

[Meandering]

In my area...yes...it happens all the time....typically followed up by what we call a seg merge by the County...where the units are combined into a single tax id# or parcel ID. Even if a COOP....the corporation typically combines the "parcels" so to speak...combining the separate owned "shares" into one. It has been my long understanding that Fannie/Freddie cannot and will not accept multiple parcels on a single URAR. Lender opinions vary...but Fannie's opinion...in my experience...does not. I am human and thus prone to error....but I try real hard to stay up to date. The URAR form anyway...is intended for a single parcel.

You can include multiple tax parcels in the UAD format, in one appraisal. You separate them with a semi-colon. It's in Fannie's UAD guideline.



How do you derive a single condo as the highest and best, when there are two tax id parcels, hence, no cost to subdivide other than closing the adjoining wall?

I ask, because here owners don't combine residential condos.

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[Kitarkus]

You can include multiple tax parcels in the UAD format, in one appraisal. You separate them with a semi-colon. It's in Fannie's UAD guideline.

I'm glad I posted...I learn something new every day. By chance do you have a link to that FNMA guideline? I'd love to have that for my files. Thanks in advance.

 

[Meandering]

https://www.fanniemae.com/content/technology_requirements/uad-specification-appendix-d.pdf

Page 6 bottom:



Assessor’s Parcel #


The appraiser should enter any available assessor’s parcel number(s) that would further identify the subject parcel/property. The parcel number(s) should be in the same format used by the taxing agency, including all spaces and dashes as applicable. If no parcel number is available, enter ‘None’.

Reporting Format:

Assessor’s Parcel Number – Text


The appraiser should separate multiple parcel numbers with a semicolon.

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[Kitarkus]

https://www.fanniemae.com/content/technology_requirements/uad-specification-appendix-d.pdf

Page 6 bottom:



Assessor’s Parcel #


The appraiser should enter any available assessor’s parcel number(s) that would further identify the subject parcel/property. The parcel number(s) should be in the same format used by the taxing agency, including all spaces and dashes as applicable. If no parcel number is available, enter ‘None’.

Reporting Format:

Thank you very much!!!