Disclosing past land sales

[incognito]

I'm still doing a fair amount of new construction appraisals. Most of it is where a single builder develops a large parcel of land, and improves the newly platted sites with their own homes. From the time the developer buys the bulk land, sells it to their holding company, quit claims it to another corporation, and on and on, there may be 3-6 transfers of the MASTER parcel in the past 3 years.

When filling out the "Prior sale and transfer history" section of the report, do you feel that these sales and transfers (of the master parcel) should, in the eyes of FNMA and USPAP, be disclosed, or do you think that only past sales and/or transfers of the SUBDIVIDED lot (if any) need to be disclosed.

Up until now I have been including all of those transfers and sales, but I'm thinking they are not relevant, because they are not actually the subject property. The subject property has only recently been "created", and has not actually, as an individual entity, ever sold or transfered.

 

[DB]

I have always included them, but with a a disclaimer that it was a "land sale only" ....

 

[Michael Tipton]

I also list prior site sales. If part of a multi-site/lot sale, I also state that it was a multi-lot sale.

 

[Ms. Janet]

hmmm.............good question bill.................

i normally don't list those sales because, aas you said, ownership wasn't transferred as the individual entity.............

 

[Mike Kennedy]

do you think that only past sales and/or transfers of the SUBDIVIDED lot (if any) need to be disclosed.

Up until now I have been including all of those transfers and sales, but I'm thinking they are not relevant, because they are not actually the subject property. The subject property has only recently been "created", and has not actually, as an individual entity, ever sold or transfered.

I agree with your conclusion. Until "created" ......the "subject lot" didnt exist. I do report the MOST recent "master transfer" indicating newly created lot was included but Aggregate Sale price has no bearing on marketability nor market value on now-subdivided lot.

 

[Chris Colston]

I do like the others do, I note the MASTER land purchase and explain that the subject parcel is part of the overall prior sale.

 

[Couch Potato]

Not Relevant.

I generally do not include it as I don't think it is usually relevant to the appraisal.

 

[Howard Klahr]

I would note the original master site acquisition and comment that there have been X number of transfers of the master site within Y time frame but that these were non-armslength transfers between entities controlled by the developer.

 

[Mike Kennedy]

Unless different across the States, here in NY, one must address the current legal description by either attaching the Deed and L.D. or making reference in Subject ID section of form reports to the Liber & Page of most recent recorded deed.....i.e. until newly subdivided lots are recorded as sold, typically, this requires utilizing the most recent L&P for the most recent recorded Master Transfer. Once noted, explanation should be provided. I'm constantly amazed during Reviews, how many reports either incorrectly state the Assessor's Tax ID as the Legal Identification when the Liber and Page (ref. to legal description) is available. Usually that signals any where from 5-20 errors on page One of the Appraisal Report. Guess that data may not be available in certain counties in NY or in other states.

 

[Wally Jones]

I also list the master sale and provide an explanation. With more scrutiny apparently being provided by some lender QC departments some undewriters must have been given a checklist and one of those items is "verify the appraiser's information on prior sales". By including an explanation of the master parcel transaction, I hope to keep the UW from asking "Hey! What about that prior sale of the subject last year for $450,000 and it's current contract for only $180,000?".

Pre-emptive strike theory.