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Complex Complete Or Incomplete?

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Joined
Mar 19, 2002
Professional Status
Certified General Appraiser
State
Illinois
When is a condo project completed? By my definition, I've always had a somewhat strict interpretation, that is, even if construction was complete, I wanted to see that all the units were sold and closed from the developer.

Now I will likely need a quote from FNMA to break the deadlock, the uw does not sound sure, but would like me to fill out the project completed section. This seems strange, as I marked the appraisal "subject to" due to the parking area not being complete, I wonder if I fill out the project completed section if the uw somehow will be relieved of some risk, I'm not sure why they care.

In addition to the definition of when to fill out the completed box, why do investors sometimes have a problem with a project incompleted box filled out, and sometimes they don't. This problem just seems to crop up about once a month.

Has anyone been asked to include a comment that the subject project has been completed subject to minor upgrades?


Thanks in advace for any advice/FNMA quotes,
 

Pat Butler

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
If there a local gov't body that will do some sort of final inspection that you can rely on? I'm thinking of a situation with single family homes where an occupancy permit is finally issued. In your case, are there still open building permits for those portions of the complex that aren't complete? It would be nice to rely upon something like that.

In any event, if the parking areas aren't complete then I wouldn't say that the project itself is complete. This is one of those problems with using appraisal forms-- rather than just checking a box that says "complete" or "not complete" I'd just explain the extent of completion in a separate addendum.
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
Frequently in multi unit projects, the inital units are completed, sold, and occupied while the last of the units are still having the pads prepared. If a unit's contract is specific about what is being provided and the letter of the contract has been met, then that unit is complete. Using a rowhouse condo as an example. If the contract says "covered assigned parking" it is not complete until covered assigned parking is in place. If it simply says "assigned parking," they can assign parking in the construction workers parking lot and the unit is complete even though they will have front door parking later in the year when the project is complete.
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I just had something similar. The subject property was completed last year but there is still ongoing construction within its Planned Unit Development. I indicated the only items remaining to be completed were landscaping around the gated entrance and common areas. The UW came back wanting more details on the "level of completeness" of the project. Uhhhhhh......well, bushes, grass, you know......landscaping. That wasn't enough. They faxed me a PUD completion form with questions about number of phases, units sold, units rented..........the same stuff I had already included in the appraisal report.

Maybe the lenders have had a problem with PUD/Condo reports for new construction? Mine is not to reason why........just gimmee another form to fill out! :D
 
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