Converted Garage

[Mike Kennedy]

FLORIDA
"If you buy with knowledge of the illegal conversion, then you’re facing the seller having a defense that you bought with knowledge of the issue and they are therefore not responsible. Other potential parties that may be responsible for your damages can be appraisers and home inspectors, depending on the situation."
http://aboutfloridalaw.com/2012/03/...sks-of-buying-home-with-illegal-improvements/

 

[Mike Kennedy]

FLORIDA
"If you buy with knowledge of the illegal conversion, then you’re facing the seller having a defense that you bought with knowledge of the issue and they are therefore not responsible. Other potential parties that may be responsible for your damages can be appraisers and home inspectors, depending on the situation."

http://aboutfloridalaw.com/2012/03/...sks-of-buying-home-with-illegal-improvements/

 

[CANative]

This is fun:

From the Q&A (it appears to be written for loan reps and maybe DEU's)

Q. Does the appraiser have to note on the appraisal that an inspection of the attic was completed or is it acceptable for the appraiser to only state that the property meets minimum property standards and it is assumed the inspection was completed?

A. None of those are required. The appraiser does not have to say whether or not they inspected the attic or crawl space. Since the appraiser is required to include pictures of the attic or crawl space, the inspection is assumed when pictures are provided. The appraiser also does not have to state that the property meets minimum property requirements. The appraiser does have to report any deficiencies, but they don't have to report everything that's good about the property.

From the 4000.1

 

[Mike Kennedy]

I've had it in the back of my head that if a garage was converted without a permit, that FHA will not recognize it as living area. I'll be danged if I can find a reference in 4000.1. Have I finally lost my mind, gone senile, or just need new glasses?

Governing Municipality?

 

[Ms. Janet]

CAN, You are hilarious

 

[CANative]

from the link:

Q. Are un-permitted spaces allowed? For example a garage that is turned into a bedroom but no building permit was obtained for the renovation. Is that acceptable?
A. A borrower can convert parts of their home to anything, whether it is their garage to a beauty salon, or converting their garage to another bedroom. But to answer the question, the appraiser would need to determine the Highest and Best Use.

For that determination the appraiser would look at the jurisdiction,
zoning and legality of that addition.
The appraiser would determine if the bedroom in question is legally permissible.

If permits are required, and you cannot build on the property without getting a permit, it would not be legally permissible.

Other factors could include whether or not the bedroom has a heat source, or if the space is insulated. Does the change to a bedroom from a garage look acceptable to the structural integrity of the property? Is the appeal of the home affected by it positively, or negatively?

As usual, Kennedy gets it wrong.

If something requires permits then it is permissable. You can't get permits for illegal things.

 

[CANative]

This document is obviously a transcript from a coffee and bagel luncheon session for angry loan reps sick of appraisers telling what they can and can't do.

 

[Mike Kennedy]

http://portal.HUD.gov/hudportal/documents/huddoc?id=SFH_POLI_APPR_PROP.pdf
FHA Single Family Housing Policy Handbook
B. Property Acceptability Criteria
8/27/14
Pg 21
22 The property must be free of all known environmental and safety hazards and adverse conditions
23 that may affect the health and safety of the occupants, the property’s ability to serve as collateral,
24 and the structural soundness of the improvements.

34 The appraiser must note what inspections, if any, are customary for the area, required by state or
35 local law, or that are recommended based on observed property conditions.

 

[Mike Kennedy]

Same Link above

Page 32

 

[Mike Kennedy]

Same Link Above

Page 33