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Conversion 1073 To 1004 & Within 3 Years Services Certification

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Tumbuktu

Sophomore Member
Joined
May 23, 2013
Professional Status
Certified Residential Appraiser
State
Texas
Client asked me to do Form 1073 (Condo) for a 'Townhouse'. Later the 'Same Client' came back and asked me to 'Convert' it to Form 1004. The 'Effective Date' remains the Same. Date of Assignment (Acceptance) for 1004 conversion is different (falls after the Condo-1073 Acceptance Date).

How is the Within 3 Years Certification handled in this situation:
  • Have I performed no services, as an appraiser or in any capacity
OR
  • Have I performed services, as an appraiser or in any capacity
regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment

As always, feedback and guidance would be appreciated.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Imo this is not a prior service, same effective inspection date and same assignment, just changing forms after the fact-unless there was a new assignment number /engagement letter generated from the order when change of form was asked for- see what others think.

If a client asked you to put it on an incorrect form ( condo when subject is not a condo), why did you do it? Sometimes our clients get it wrong and we have to explain that to them.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Client asked me to do Form 1073 (Condo) for a 'Townhouse'. Later the 'Same Client' came back and asked me to 'Convert' it to Form 1004. The 'Effective Date' remains the Same. Date of Assignment (Acceptance) for 1004 conversion is different (falls after the Condo-1073 Acceptance Date).

How is the Within 3 Years Certification handled in this situation:
  • Have I performed no services, as an appraiser or in any capacity
OR
  • Have I performed services, as an appraiser or in any capacity
regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment

As always, feedback and guidance would be appreciated.

If, other stuff has happened in the market, between the original report, and this new formated report, I would call the whole thing a new assignment with a retrospective opinon of value.

If this change of heart for report format occured very recent to the original appraisal, I might, for an extra fee, do the conversion and in the 3 year history portion state I had performed the appraisal for the same client and same effective date, which was reported on a 1073 in accordance with the letter of engagement and that the new report, was merely a change in report format, not a new appraisal.

Spell out what happened, when and why, that way, anyone who finds a copy of the 1073 doesn't try to make some federal case out of also having a report on a 1004.

Charge xtra. Time is money.

.

.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Spell out what happened, when and why, that way, anyone who finds a copy of the 1073 doesn't try to make some federal case out of also having a report on a 1004.
Charge xtra. Time is money.
Bingo!
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
I would say no because nothing has changed but the form and the signature date. I would state on or in your report that the property was completed on a 1073 but was incorrect form because the property is not condominium and was corrected.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Client asked me to do Form 1073 (Condo) for a 'Townhouse'.
Why would you ever do a townhome on a form specifically stating that it is for a condo only? :nono:
This report form is designed to report an appraisal of a unit in a condominium project or a condominium unit in a planned unit development (PUD).
15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct.
It's your report with your signature...don't let the client/lender/AMC talk you into doing a misleading report.
sow.JPG
 
Last edited:

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I would make the modification and say it is something I've previous done, and it is NOT retrospective. It is still well within the marketing time estimate and the comps are not changed. Retro is not explicitly defined in USPAP but I don't think a few days makes any difference since for most all my work I didn't do the report the same day I did the inspection.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
Client asked me to do Form 1073 (Condo) for a 'Townhouse'. Later the 'Same Client' came back and asked me to 'Convert' it to Form 1004.
Before you do anything you need to determine if the property is actually a condo or not. As has been addressed innumerable times on the forum, condo is a form of ownership and townhouse is an architectural style. Until you understand the actual form of ownership, you will not be able to determine what form is proper for the report.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
As has been addressed innumerable times on the forum, condo is a form of ownership and townhouse is an architectural style.
I agree with Howard. Is your subject a condo with a townhouse style or is it a SFR with a townhouse style

I'm literally working on an assignment where the client (AMC I do minimal work with) sent it over as a 1004 b/c it's a "townhouse" but the subject is a condo.

Check the legal description
 

Tumbuktu

Sophomore Member
Joined
May 23, 2013
Professional Status
Certified Residential Appraiser
State
Texas
There is Big Confusion among lenders in this market on what form to use for Townhouse (Other styles High-Rise, Mid-Rise etc are very uncommon here).

Couple of years back, I did 'Townhouse' for 'Lender-A' on Form-1004. 'Lender-A' sold the Loan to 'Lender-B'. The 'Lender-B' wanted it on Form-1073 (which is exactly the opposite of current scenario)

Even the Tax/County doesn't give enough Information. They tell, it is zoned for 'Townhouse/Town-Home' and that is what the tax records says it too.

It is probably project description in form 1073 that confuses the lenders

Project Description (Form 1073)
  • Detached
  • Row or Townhouse
  • Garden
  • Mid-Rise
  • High-Rise
  • Other (describe)
 
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