Condo and townhouse form

[Mike Stagner]

Recently did a condo appraisal on form 1073. Client sent email saying it has been classified as a townhouse. What is the correct form?

 

[Charles Knutson]

Hi Mike --

If a townhome has a lot and block legal description, the URAR 1004 is the correct form. If it has a condo legal description, the 1073 is the correct form.

I've seen townhomes with lot and block legal, with "condo" in the name of the project. In those cases, I called them condos.

If it's a lot and block townhome, check the attached box on the 1004 page one and the PUD section of page three.

Historically, some lenders had better rates and programs for attached SFRs than for condos -- the proof is in the legal description, and not the desires of the loan officer. But as long as the townhome legal includes ownership of the land, it's an attached SFR.

Good Luck!

 

[Ray Miller]

Check your legal as has been suggested. With that said I have run across legals that did not say condo in them and yet they were condo. You will also need to check your lot line as well and who owns the land under the building.

 

[Chris Colston]

Townhouse is a design style. Condo is a form of ownership.

You can have townhouse condos, townhouse single family in a PUD or Homeowner's Association, you can have townhouse single family with no fees at all such as row homes in major cities like Baltimore, Philadelphia, parts of NY, etc.

Which do you have? That is what will determine the form, NOT the lender, mortgage broker or loan officer.

 

[c w d]

If it's a condo, then you should be able to determine its status with certainty through the clerk of courts as they would have had to file the legal documentation which spells out the ownership of units and common areas and will even go into details about designs of units. I forget what it's called as I have not done a condo in almost a year. It's a rather large document recorded at the clerk of courts. Hopefully in your area, like mine, you'll have online access.

 

[Lee Lansford]

Recently did a condo appraisal on form 1073. Client sent email saying it has been classified as a townhouse. What is the correct form?

Is the Subject new construction? If not, I have to surmise that the form of ownership should be readily available via the legal description.

If the property is in an area covered by the N.IL MLS (or, whatever it is named these days), the form of ownership should be available via ISI.

Where (you don't have to give the exact address here) is the property located?

--Lee

 

[Mike Stagner]

Legal description

Thanks for your replies. Here is the legal description.
BLUFF VIEW LOT 1 REVISED UNIT A LOT 1

 

[Lee Lansford]

Thanks for your replies. Here is the legal description.
BLUFF VIEW LOT 1 REVISED UNIT A LOT 1

Based only on this partial legal, it does not appeal to have condominium ownership.

Mike, if you like, e-mail the specific identifying information for the Subject and I'll see whether or not I can assist further.

E-mail (remove spaces): Lansford @ ameritech. net

 

[Mike Boyd]

If it's a condo, then you should be able to determine its status with certainty through the clerk of courts as they would have had to file the legal documentation which spells out the ownership of units and common areas and will even go into details about designs of units. I forget what it's called as I have not done a condo in almost a year. It's a rather large document recorded at the clerk of courts. Hopefully in your area, like mine, you'll have online access.

In my area it would be difficult, if not impossible, to engage the County Clerk, a staff member or the County Recorders office in ANY conversation. They will tell you to come in and review the documents, that's all. Then you would need to bring a real estate attorney with you to interpret those documents.

A local title company (title officer...not an escrow clerk....)will tell you how it will be insured for title insurance. Unlike the arrogant demi gods public employess have become, title officers are generally helpful and they communicate reasonably well. Most public employee staff members do not know the diffierence between a condominium from a condom. In some market areas, the term "condominium" has become synonomous with attached houses, HOAs and developments with common areas. So, for accuracy, contact a title company.

 

[David Sawyer]

I once did an Manufactured Home on a 1073 condo form! Subject M/H had a fire in a MH village that was completely built out years ago. Old MH removed, $25,000 spent on upgrating boat dock/ lift since it was on a canal. SOW was "subject to" as new MH was being built and did the report on the 1004C. Several months go by and final inspection performed. Lender comes back and states that in the docs the word "condo" appears which meant that I had to change the appraisal to the 1073 form.