Condo/pud Or SFR

[Alicia Naiman]

Subject: Below is pulled from public records- I cannot tell if it is a SFR or a Condo?
1700 SF
Zoning: PUD
County Use: SFR
Universal Land Use: SFR
Detached 2 story on .108 acres
1 car attached garage
Neighbors - some have carports, others have garages, etc.
Monthly HOA dues with common areas, etc.

Problem:
Most of my Condo/PUD comps are attached dwellings. Can't find a good sample of detached PUDs. I have found plenty of SFRs located in PUD zoning, but don't know if this would be comparing apples to oranges or not. Can anyone guide me on this? I have searched the forum for previous posts, but they don't address this issue.

 

[walt kirk]

Firstly a condominium is a form of ownership, if you are not sure of the type of ownership of the subject look at the deed.

Secondly PUD's are becoming more popular with builders and local govermnents since they avoid local government costs. I would look at housing that competes with your subject in style, size and price and then make an adjustment (if necessary) for the PUD.

 

[Jo Ann Meyer Stratton]

First do not confuse zoning with interest rights. Interest rights are described in the subdivision CC&Rs. Depending on the laws of your state, you might have a condo or you might have a PUD. If the subdivision CC&Rs doe not have the wording your state requires for the property to be a condo, if there is a mandatory home owner's association with or without current dues, then it is a PUD. CC&Rs are private restrictions and private restrictions determine whether you have a condo or a PUD. Zoning is a government restriction and may be similar, the same or completely different than the CC&Rs. In my state the older definition of a condominium applies--"A structure of two or more units, the interior space of which are individually owned; the balance of the property (both land and building) is owned in common by the owners of the individual units. The size of each unit is measured from the interior surfaces (exclusive of paint or other finishes) of the exterior walls, floors and ceiling. The balance of the property is called the common area". The Real Estate Dictionary, Third Edition. Other states may follow more current editions/definitions.

So to determine what you have, you need to read the subdivision restrictions (maybe your client already has had a title report done and can provide the info to you). For comparables you need to find other homes with similar subdivision restrictions, similar homeowner association amenities and dues, as well as similar homes. Depending on your state and local public records, that might be difficult to do.

 

[Alicia Naiman]

Thanks for your help~

 

[Ultraviolet]

One quick way to distinguish between condo and PUD is to see if there is any land included in the legal description. Condo is just the air space and does not include land. If there's land it's probably a PUD.

 

[Charlotte Dixon]

If I'm starting "cold" with an appraisal assignment that "could" be a Condo, the first thing I do is check the tax map parcel (physical location). Typically, there is a section on the page that may describe it as "_____ condos"...or something similar. Most important is to get yourself down to the court house or public building in your county to check out the ownership. Condos can be sticky and confusing, as you know. We have one here which is a doublewide community, includes the land and the doublewide, but form of ownership is part condo, since there is an undivided interest in the common elements, such as the club house, tennis, pool, etc. It's the only one of it's kind in this area, and comps have to be drawn entirely from that community, or travel 50 miles. That is a REAL odd-ball.

 

[Ida S. Romo]

Alicia,

The homeowner/condo docs, rules, regs etc. are usually titled either "Sundowners Home Owners Association" or "Sundowners Condo Association". This will (generally) give you your answer.

Ida

 

[Frederick R. Ruffell]

Look at the PLAT map, the legal description, and the APN #. Typically individual Condominium ownership units (detached or attached) properties are not going to have an individual lot defined on the plat map, In my county if the last 2 digits of the APN# is something other than "00" then there is common interest in the LOT/SITE (condo AND/OR pud), the legal description will have the words "undivided interest" in it for condo AND/OR pud.
Never rely on the zoning!!!!
Basically, a PUD (Planned Unit Development) owns the fee title to the unit's lot and some other undivided interest in some other amenities. A Condominium does not own the fee title to the lot/Site but rather an undivided interest in the lot/Site.
Remember a PUD can be made up of SFR's, Detached or Attached, and likewise Condominium's can be Attached or Detached.
Now, do you want to talk about the De Minims PUD? How about a "Co-Op".

Alicia if you are not clear on these concepts might I suggest that you may have a competency issue here and should bring in someone that knows this stuff inside and out to provide assistance and possibly sign the report as well.

 

[Alicia Naiman]

Frederick,
I am a licensed trainee... and finding "someone who knows this inside and out" is exactly the problem. I receive different answers from each appraiser I collaborate with, including my supervisor. That is precisely why I posted the question, to determine if the help I'm receiving makes sense. I admit that this is not my area of expertise, and do appreciate the advice from much more experienced appraisers. I will ALWAYS continue to learn!

Thanks again everyone.

Alicia

 

[Frederick R. Ruffell]

Alicia,
If you are a licensed trainee where the #@?& is your supervisor in all this? He/she is ultimately going to have to sign the report!!! Just because you are a trainee does not excuse you and/or supervisor from following USPAP, which has alot to say about you and your supervisor's competancy.
1.) get a copy if USPAP
2.) read it
3.) take a 15 hour course on USPAP
4.) Try to follow USPAP (None of us knows/understands all of USPAP and it constantly changing.)
5.) Pick up an appraisal text (i.e. the appraisal of real estate 12 edition , Published by the Appraisal Institute)
6.) LOOK UP the related section in the text and read it.
7.) Ask your supervisor to explain things to you, I know it is hard to ask for help when thing are busy but that is his/her responsibility. After all you are only getting a partial fee and he/she is getting the rest. The idea there is that he/she is getting paid to train you, get your money's worth!!!
8.) Consider declining the assignment due to your lack of competency, there is no shame in that, I decline assignments every week that I am not competent to do.

Back to your specific problem,
1.) Determine if it a Condominium, a PUD, a De Minimus PUD, or SFR. Once you have done this the rest will fall into place.
2.) Only compare Condo's to condo's.
3.) Try to compare PUD'S to other Similar PUD's
4.) I have on rare occasions used SFR comps to De Minimus PUD'S and vice versa where no other similar comps were available.

Alicia,
It is OK for you to not to know these things (we have all been there) and still accept the assignment, but you must complete the assignment "in a competent manner" (i.e. get competent or get someone who is). It is NOT OK for your supervisor to not know these things and hang you out to dry on it. I think your profile states you are from Northern CA, I used to appraise SF, Contra Costa, Alameda, and Marin. If I remember correctly the PLAT maps were my key to determining the type of property, of course the The Title Report would spell it out if it were available, the lender is required to share that with you per FNMA guidelines I believe. I would be more than willing to take a look at the Plat and Assessors record if you like.