Credit For Boat Slip

[Eli]

This is not accurate at all. a) a deed is not the only instrument that conveys ownership. b) ownership is not a requirement of value c) banks/other type of lenders can lien other collateral other than just real estate. i.e. does your car have value? lenders manage to place liens on those transactions. Your comment is just too broad and general

That's right. A lien may have to be recorded on a separate document like a UCC-1 depending on how it is recorded in public documents. But it has value and the bank wants a lien on it if it is tied to the real estate. You and JGrant and many others are on track.

Similar to a hotel and their personal property and business property and fixtures. The bank wants a lien on it all and have to file separate documents sometimes in order to secure their interests and liens.

 

[timd354]

I live on a Corp controlled lake and properties with dock privileges have a substantial value superiority. The dock ownership are typically transferred with the RE and add substantially to the RE value in the $50-100K range for "water front properties" and somewhat less for "water access" lots. Technically the dock ownership is first come first serve etc and can be transferred separately from the RE within certain parameters but most transfer with dock privileges at a substantial premium to those without on water boat storage access. The actual floating dock structures are personal property, but ignoring the value of the available on water boat storage value would be highly misleading. YMMV.

The problem with the dock privileges on a lake/waterway owned by the Corp of Engineers is that they are not real property and cannot serve as security for the mortgage and most mortgage lenders will simply not lend on a property if part of the value of the property cannot be secured through a real estate mortgage since filing a UCC security interest is not something that most real estate lenders are willing to do and, in any case, is not acceptable to the secondary market (and it may not even be possible to file a valid UCC security against a Corps of Engineers dock permit)

 

[timd354]

I deal with boat slips on community piers and private boat docks at lake front homes all the time where I live. Pacific Gas and Electric (P G & E) owns Bass Lake which is surrounded by BLM forest land. A home sold with a slip on a community pier typically add's anywhere from $30,000 to $75,000 more. Appraiser's have always added/included "X" amount on the grid for the slip. In 100 appraisals, maybe 3 to 5 lenders question it. Recently one asked if the slip could be sold separate from the home. The answer is maybe. To purchase a slip on a community pier one has to own property at Bass Lake, per P G & E). At some community piers only certain homeowners in certain sub-areas can have a slip on a particular community pier. The slip is not recorded in the county records but it is assigned a contract by P G & E so it is effectively, attached to a certain house. So a few lenders have requested the value of the slip be removed from the opinion of value in the appraisal report. It can easily make the difference between the opinion of value matching/exceeding the sales contract or not. As far as I can tell, there is no definitive rule on this. It seems to be lender specific.

As a former Freddie employee I can you for a fact that including the value of such boat slips as described here in the appraisal will make the loan ineligible for GSE financing and subject the lender to a repurchase if the loan defaults. Some lenders understand this, others have no clue.