Did I make a huge mistake? Accessory unit?

[PropertyEconomics]

Look .. this pizzing contest between a few is neither helpful nor very productive to the OP.
The truth of the matter is pretty simple .. the OP made a mistake in preparation of an appraisal. The method utilized to calculate square footage, appears to be incorrect. Whether it is incorrect or not depends upon the OPs market and most tend to ignore that in some parts of the country things are handled differently.

I believe there is sufficient admission that the GLA was calculated inadequately.

I believe the OP should contact their E&O Insurance provider and have a discussion about this situation. I personally would want to know what the value would have been had the GLA been calculated correctly and the value of the accessory unit apportioned correctly. THEN I would make the call to E&O and receive guidance.

Other than that ... you guys arguing among yourselves is just background noise.

 

[Junior Member]

Tharax,

If we at LIA insure you for E&O, will you please call us to talk about the situation. It sounds like you disclosed the existence of the unit well and that your opinion of value may be right. However, if there is the possibility of the lender or HO asserting a legal claim for damages, you don't want to make things worse.
Also, you really should not write publicly about a situation that poses potential liability and disciplinary threats to you.

-- Peter Christensen, LIA's general counsel

 

[mark hurlock]

I believe there is sufficient admission that the GLA was calculated inadequately.


.

I believe the op indicated their uncertainty of what they did rather than an admission of inadequacy.

 

[smackodu]

Look .. this pizzing contest between a few is neither helpful nor very productive to the OP.
The truth of the matter is pretty simple .. the OP made a mistake in preparation of an appraisal. The method utilized to calculate square footage, appears to be incorrect. Whether it is incorrect or not depends upon the OPs market and most tend to ignore that in some parts of the country things are handled differently.

I believe there is sufficient admission that the GLA was calculated inadequately.

I believe the OP should contact their E&O Insurance provider and have a discussion about this situation. I personally would want to know what the value would have been had the GLA been calculated correctly and the value of the accessory unit apportioned correctly. THEN I would make the call to E&O and receive guidance.

Other than that ... you guys arguing among yourselves is just background noise.

I would agree except for the fact that some of us have real life work experience appraising in the subject's state. We are know MD's public records(SDAT) and we know about zoning issues in the counties. We are familiar and have even appraised properties with accessory units.(both legal and illegal) We know what to ask when we call the local zoning offices.

To the OP, Remember the lender used your report in the closing of a loan. The lender's underwriter read your report and signed off on it.

 

[PropertyEconomics]

Tharax,

If we at LIA insure you for E&O, will you please call us to talk about the situation. It sounds like you disclosed the existence of the unit well and that your opinion of value may be right. However, if there is the possibility of the lender or HO asserting a legal claim for damages, you don't want to make things worse.
Also, you really should not write publicly about a situation that poses potential liability and disciplinary threats to you.

-- Peter Christensen, LIA's general counsel

Peter this is very good instruction, and I might add with your indulgence, no matter whether LIA is the OPs carrier or not ... a call tomorrow to his insurance provider is paramount to moving forward. He needs guidance and knowledge to legally handle this situation.

As always I appreciate your posts and counsel.

 

[Tharax]

Post edited.

 

[Renee Healion]

It is better to lack competence than ethics.

 

[Renee Healion]

Since you're asking, it is better not to lack both. Call your E&O and don't post anything that suggests that having dug yourself a hole you now are considering pulling the dirt in on top of yourself.

 

[TJSum]

Call your E & O asap, and stop posting, you might wish to remove your last comment.

 

[Tharax]

Ok got it.