Condominium Conundrum

[Ferstl00]

I have a very oddball assignment that has been dragging on for weeks now. Hoping someone out there can help me figure this out...

I was asked to appraise a unit in a 4 unit building. All of the surrounding dwellings are single family and zoned as such. The city zoned the subject parcel differently to allow its use as multi unit... The owner of the unit I’m appraising says it is a townhouse. The zoning description says condo/townhouse. The owner is in the middle of replacing her own roof and says each unit is responsible for such. There is no HOA, no fees, no management. Each unit has an assessed value for the site. This was ordered on a 1004 and completed as a townhome. The lender sent it back asking for it to be switched to a condo form. They provided some old title documentation that very loosely eludes to this being a condo. However, there is no HOA therefore no questionarre or certification to help me complete a condo form. Anyone ever encounter something like this before?

 

[Tru Red]

I can't offer much but my own experience. About 3 years ago I completed an appraisal report on a property in Fresno, CA. Everything I found in public record told me it was a single family residence. I wrote up the report and submitted it. About a week later I received an email from the lender telling the real estate agent (listing agent) somehow had gotten involved and told the lender it was a condo. I asked how they arrived at their conclusion. They sent me a copy of the preliminary title report and sure enough, it referenced the subject as a condo. There was no HOA, no shared walls. As it turns out it did have a shared area. Just a 2 story home in a small gated community. I had to re-write the entire report as a condo. I learned right then and there to ALWAYS request the lender send me the preliminary title report if I have even the smallest inclination a property I was appraising could be a condo. https://thelawdictionary.org/condominium/

 

[Howard Klahr]

The owner of the unit I’m appraising says it is a townhouse

Townhouse is an architectural style NOT a form of ownership. What does the actual legal description state?

 

[nstanbru]

Anyone ever encounter something like this before?

All the time, especially in Corona Del Mar. It's all about the legal description.

 

[residentialguy]

no shared walls

How the heck can you have 4 units in one building and have no shared walls between them???

 

[residentialguy]

This was ordered on a 1004 and completed as a townhome.

It's not up to them to decide how to appraise it. It's up to you to identify and appraise it correctly.

Does this have a CIC in the legal? If so it's probably a condo. It's it has a lot & block, it's probably townhome. Of course there are always exceptions to the rule.

 

[Ferstl00]

Townhouse is an architectural style NOT a form of ownership. What does the actual legal description state?

You could say the same about the word condo... the legal states a lot and block. Prelim states condo. There is no association or management. No common area. I’ve never seen a condo where each owner had to reroof their individual units before...

 

[Ferstl00]

It's not up to them to decide how to appraise it. It's up to you to identify and appraise it correctly.

Does this have a CIC in the legal? If so it's probably a condo. It's it has a lot & block, it's probably townhome. Of course there are always exceptions to the rule.

I thought I had identified it correctly. It’s lot and block on the legal. Title work says condo.

 

[residentialguy]

I thought I had identified it correctly. It’s lot and block on the legal. Title work says condo.

I've yet to find a condo without an association. It sounds like a townhome.

 

[Howard Klahr]

You could say the same about the word condo.

OK well if you insist ... Condo is a form of ownership and NOT an architectural style. Now once again, what EXACTLY does the complete legal description state?