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Condo with a permitted ADU

The adu was added as a condo, maybe. If there was an association they prob wouldn't let them do it. This deal is so convoluted that your foot is already in the bear trap. And when, at some point, the lender will stip you to death, or after closing the loan, someone says wha da hey is this. And i hope the small fee you got will pay your attorney at the state hearing. Cause they will have all the time to find your mistakes.

I never thought i should do every appraisal that i got cause it was a challenge. Remember, the state can make up new faults with your unique appraisal concept.
 
There are rare cases where a property simply does not allow for a credible appraisal to be developed, and this might be one of them. Though it might not be for a lender client ( is it?), there is a cert on the 1004 form and 1073 form that says "(paraphrasing) enough data and similar sales existed to form a credible opinion.

The fact is, on reflection, there are no similar sales for comps. a SFR with an ADU is not a good comp because of the vast difference in ownership and possible value. A condo is not a good comp because none of them have an ADU, etc. The reason none of them are good comps, besides the obvious, is because the subject building itself is in flux, the assailant has been dissolved, who pays the insurance on each unit, even though it is registered with the state as a condo, it is not functioning as one . If there is no reserve fund, no insurance company will touch it,, who makes repairs to common areas, who is responsible if no one pays dues, but there are no dues - this is such a mess that especially just a res license should not attempt it - and I take on many complex jobs but this one is too mired in possible legal and other issues.
 
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4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales
comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach
for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop
them, unless otherwise indicated in this report.

Cert 14 on the URARA form - if you don't have adequate, comparable market data ( comps) to develop a reliable sales comparison approach, then you can not , or should not, complete the assignment. An adequate comp would be a failed condo where the association was dissolved - how are you going to find that? Let a condo with an ADU.
 
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To Tom D's comment, is it a new condo for the 'project' or an ADU? If the ownership is condo, then would another unit regardless of placement, be considered another unit. Gotta deep dive into the original covenants to see if A) it is actually allowed, regardless of permitting and B) what type of ownership is the result of the additional living unit. Unless the CCand Rs have a sunset, they are still in play no matter if the HOA is active or not, Certainly a complex assignment.
 
I would back out of this assignment so fast it would make your head spin. Even if it meant losing the client. I'd rather lose the client and save face rather than lose my license.

Accepting a complex assignment and rising up to the challenge is one thing....but this is a lose-lose proposition as pointed out by your peers in this thread.
 
Yeah, I'm struggling with how there could be condo ownership without an HOA. As the site is a common element, who holds that now that the HOA has been dissolved? This doesn't even sound legal...
 
What now happens to common maintenace. Or wait till there are problems about who is liable for what expense. Ohhh nooo, there be no funds in the account.

Stip, please confirm your reseach on any potential negative issues with the current anarchy project.
 
Yeah, I'm struggling with how there could be condo ownership without an HOA. As the site is a common element, who holds that now that the HOA has been dissolved? This doesn't even sound legal...
There are a couple around here, new and newer construction. The units include their postage sized yards. A shared walkway is the only common area. I think there is something about joint maintenance of the walkway and exterior, but am not sure. I only did the construction appraisals on them and don't know the legal ins and outs of the conveyances. No parking in the 'project'. And they are really small projects, like up to 4 units.
 
Yeah, I'm struggling with how there could be condo ownership without an HOA. As the site is a common element, who holds that now that the HOA has been dissolved? This doesn't even sound legal...
Well..... as usual, we did not get the entire story.

There are site-owned condominium ownerships such as the op is describing here in Cali. Two townhomes, one common driveway, lot is split and owned by each unit. Maybe that's the situation that the op has.

Why the planning department of Glendale allowed the adu, mother-in-law's quarters, whatever it is, and how it conforms to zoning.....is baffling. There will be no comps. Not 10 miles out, not 10 years back. The OP is going to have to use SFR's with adu's....which is going to put him knee deep in s*it.

On top of all that, it's probably an AMC gig.
 
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