Detached Condominium

[Sarah Smitz]

Doesn't matter what they request, you're the expert and it's up to you to provide the correct form.

I have never seen a detached PUD without ownership of a lot. I have seen many detached condos with their own yards, patio, ect. without a lot.

As stated previously, with a unit number in the legal you are 99% likely dealing with a common interest development. You could always request the complete legal description from a title company which will probably describe a percentage interest in the complete project.

Then a 1073 is your only choice.

Sarah

 

[Robert Anderson]

Originally posted by Daniel An@Apr 28 2005, 11:45 AM
...What makes it different between attached PUD/w no lot and detached Condo/w no lot?...

Daniel,

There is no universal formula that will allow you to determine whether a particular residence is a condominium or not. This varies from county to county in California.

In my home county, all condominiums have an assessor's parcel number that begins with a "9." Right now I am appraising a residence with the assessors parcel number 932-56-##. So, right off the bat, I know with about 99 percent certainty that this is a condo.

Next I look at the legal description, which in this case is "unit ## on lot 1 of tract 7970. The word "unit" confirms that the subject property is a condo.

Finally, the assessor map identifies the subject development as project 932-56 and does not show individual lots for each residence. Once again, this confirms that I'm dealing with a condo.

So, you need to find out how to identify a condo in the area you work. Don't ask appraiser Bob who works in Orange County or appraiser Randy who works in Spokane. Ask a local appraiser who has the experience to teach you this sort of thing.

Bob Anderson

 

[Randy Beigh]

Bob,

Correct.

Just looked up a condo legal for this area and it makes me wonder how it would read different in CA?

Unit A-10, University Gardens, including 2.10705% undivided interest

Daniel,

Your answer to me about using NDC data does not mean anything to me. What does the title company say. The lender figured out it was a condo, apparently, so why didn't you know?

 

[Yellow Fin]

Your answer to me about using NDC data does not mean anything to me. What does the title company say. The lender figured out it was a condo, apparently, so why didn't you know?

This part was a little confusion to me, anway it was my fault not reviewed the full legal description from the title company.

Ask a local appraiser who has the experience to teach you this sort of thing.

Yes, I will.

Then a 1073 is your only choice.

Just sent out the new 1073 report to the client.

Thank you everybody, it was so stressful/painful in past two days, but I hope I won't make this kind of mistake again in the future.

Sincerely,

<Daniel An>

 

[Randolph Kinney]

Originally posted by Daniel An@Apr 28 2005, 11:45 AM

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.

One way to verify what it is, contact the HOA and ask what the legal registration is, CONDO or PUD.

Also, from the plat map you can get from NDC, you typically have two or more plat maps for a CONDO; one that shows the entire property (common) and the others to show location and APN for each unit.

Some detached homes are classified CONDO because they don't meet the the setbacks and minimum lot size for SFR. Some zero lot line PUD's are PUD's, some are CONDO's. Check with the HOA management compay.

 

[Yellow Fin]

Now, the same lender requests 'Cost Approach Analysis'.

Since it is a condominium, I stated it on the report as 'The cost and income approaches were considered to be unreliable for a condominium.'

Do you ever do 'Cost Approach Method' on Condominium?

<Daniel>

 

[Sarah Smitz]

No.

You have a real gem of a underwriter.

What is the definition of a condo?....... "A subdivision prioviding an exclusive ownership interest in the AIRSPACE of a particular portion of real property, as well as an interest in common in a portion of that property".

Ask the underwriter what is the cost of airspace? Why is some airspace more expensive than others?

Just enjoying your nightmare.

Sarah

 

[Carnivore]

Daniel,

From another condo thread I posted the following:

The cost approach to value was not considered an applicable approach in this assignment. The first step in the cost approach is to estimate the value of the subject's land. The appraiser has researched the area and could not locate any similar development with footprint type lots that were willing to sell the site without also purchasing a completed unit. Since sales of vacant land would be both applicable and necessary to estimate the site value, this step in the cost approach could not be completed. The next step in estimating value by the cost approach is to estimate the replacement cost new, less depreciation, for the improvements. While this is possible for attached units, the appraiser would also be required to develop an opinion of value for the contributory value of the common elements of the project. This could be done by extraction if the appraiser new the site value. Since two of the three components needed cannot be accurately estimated, the cost approach was not included in this appraisal.

This is really meant for an attached SFR. It should work for your ignorant UW. Simply dazzle them with this. If there not capable of understanding what a condo is then they wont be able to figure out that this is BS.

 

[Yellow Fin]

You have a real gem of a underwriter.

I did explain it to the lender, but they still want it.
They are keep saying they have to close the escrow 'Now'. But, there is not much I can do about it.

Just enjoying your nightmare.

Here it comes!

<Daniel>

 

[Randy Beigh]

Daniel

You might try this one.

I went through the MS cost manual thinking they might have a way of doing the cost on a unit. They do not. They only have condo development costs. Just tell the dumb underwriter you have no access to a per unit cost. If he/she does, please send it over. That is, probably, why Fannie/Freddie/FHA don't ask for such a thing, because there isn't any.