Detached Condominium

[Yellow Fin]

I had this purchase appraisal a month ago.
Subject has lot size about 4,000 SF and detached. Subject has HOA due for maintenance, landscape, and driveways.
I used 1004 and described it as detached PUD. Not many comps were out there. I chose two in the same complex, four from outside of the complex (One PUD and three SFR with similar condition/GLA/Lot size).

Appraisal report was reviewed and approved, but found Subject doesn't own the Lot. It is a legally condominium. Now I have to make the new condo report.

Have you ever done anything like this, detached condominium with not owned lot?

<Daniel>

 

[wyecoyote]

We have a few detached condo's around here. Typically 55+ communities.

 

[Yellow Fin]

My another mistake was that I gave value on the lot, now I have to make it to 'zero'.

 

[Sarah Smitz]

Daniel,

How did you know what the lot size was if it was a common interest development?

Did the agent or County offices have a plat map for the individual unit?

Detached condos are common in my area. From my discussions with builders, the development costs and red tape are less due to the lack of shared walls.

Sounds like you are going to be redoing the report with some different comps.

Sarah

 

[Yellow Fin]

I measured the lot size with a tape measurement.
Plat map wasn't that clear and County record shows 'Condominium/PUD'. No individual plat map was available which is common in my area.

Sounds like you are going to be redoing the report with some different comps.

That is what I am doing now.....,

Thank you.

<Daniel>

 

[Jo Ann Meyer Stratton]

Unless you are a registered land surveyor in your state---never, ever measure the property!!! Your state Board of Technical Registration is much more grouchy than any Appraisal Board, as in big, big fines. Arizona Board of Technical Registration fines start at $5,000 and go up from there. That is the main reason I don't even show distances on my sketch to anything that might resemble a property line. Only report what is of public record--recorded subdivision plat or legal description on the deed. You also can't rely on assessor's records, which are only a bookkeeping function for the assessment for property taxes (they have no legal standing).

 

[Robert Anderson]

Daniel,

In California, you should not use the word "lot" in physically describing an individual condominium residence. Instead, the appropriate term is "unit." Thus, the typical legal description of a condominium residence might be unit 56 of tract 2311. Often condominium developments are divided into 2 or more lots with each lot containing multiple residences, common area facilities, and even streets within the development. In these instances, the legal description of a condominium residence might be unit 3 on lot 4 of tract 83222.

Parcel and assessor's maps of condominium developments may show what appear to be numbered lots for individual residences. These are not lots. I am not sure of the technical term but they are typically the unit space that the owner of each residence has the exclusive right to occupy.

So, I agree with the lender. You should not have assigned a lot value to the subject property since there is no lot. It is not relevant if the residence is attached or detached.

As an aside, from time to time I will encounter condominium residences that have larger patio or yard areas than other units in the development. These residences tend to have higher market values due to these larger patio or yard areas, and, if supportable by market data, it is appropriate to adjust for this factor. Just don't use the word "lot."

Bob Anderson

 

[Jim Onderisin]

The last detached condominium unit I appraised was on a 2055 form. If the lender had asked, it could have been on the condo form or URAR form. The form doesn't matter... but the fact that it is condominium ownership, not fee simple, does.

Since its a condo unit, the property owner owns the space inside the unit, from drywall to drywall. Measure the inside. The exception might be if comparables are similar condo units whose reported living areas are based on exterior measurements. Then, I might report exterior measurements, but plainly indicate in my report what I had done. I'd probably also include the interior living area size somewhere in the report.

The unit owner also owns a certain percentage of the common areas, which include the exteriors of all the other units and all land under and around all the units. That's the reason there's no lot.

 

[Randy Beigh]

Daniel

I must have missed something in all of this.

What does the legal description read? Without a legal describing a condo, how did the lender determine that it is a condo? Where is the evidence that says it is condo?

Before I make any requested changes, I would want these questions answered.

 

[Yellow Fin]

What does the legal description read? Without a legal describing a condo, how did the lender determine that it is a condo? Where is the evidence that says it is condo?

NDCdata shows condominium/pud.

What makes it different between attached PUD/w no lot and detached Condo/w no lot? Is it up to the lender who can choose 1004 or 1073? For the similar units in the same complex, some lenders request 1073, but some lenders request 1004.