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Driveway Easement

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Mae

Freshman Member
Joined
Jan 27, 2017
Professional Status
Certified Residential Appraiser
State
Ohio
Hello,

I'm working on a foreclosure for the bank. It is vacant house on 5 acres. Property is in a rural area. The subject has no frontage. To access the subject property the driveway crosses over the neighboring parcel. I can not find any easements or anything on record. I have called several municipalities with no luck. I requested the lender to provide me with a survey or easement information but they were not able to locate anything of use. They provided me with a Title Insurance document with reference to the following;"Subject to an encroachment of an adjoining land owner's gravel drive on the subject premises, as shown by the survey.. ect.. " However they could not provide a survey. However, this is not what I'm seeing on the county site, its the subject's driveway that is on the neighboring parcel. I told them I would need to write the report subject to an extraordinary assumption of their being legal ingress/egress. However, the lender is wanting me to right it "As Is" because it is an REO. Would it be okay to write this as "As Is" or should it be "Subject To"?
Thanks!
 

gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
Not sure how things work in the great state of Ohio, however, a title report on the adjoining property might show the driveway easement in favor of your subject property.
 

Mae

Freshman Member
Joined
Jan 27, 2017
Professional Status
Certified Residential Appraiser
State
Ohio
Thank You,
I will see if I can find anything on the adjacent parcel. I believe I tried with what was available on recorders site and could only find a Columbia Gas easement for the subject property that runs through the neighboring parcel. I should clarify the lender wants me to include a statement for an EA however they don't want it written Subject To.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I am not an abstractor. Give them a choice. Subjeçt to, they provide a title opinion from a title search, or, say you will search the last deed for the subject and the last deed for the parcel they are traversing, and if found you report "as is". The absence of evidence is not evidence of absence but if no legal access, then tell them you will appraise as landlocked and discount accordingly for an extra fee....double. Over 25 years, I've encountered no more thän 3 or 4 landlocked properties, and they all brought from 40-60% of market value.
 

techbiker

Sophomore Member
Joined
Dec 4, 2015
Professional Status
General Public
State
Texas
Hello,

I'm working on a foreclosure for the bank. It is vacant house on 5 acres. Property is in a rural area. The subject has no frontage. To access the subject property the driveway crosses over the neighboring parcel. I can not find any easements or anything on record. I have called several municipalities with no luck. I requested the lender to provide me with a survey or easement information but they were not able to locate anything of use. They provided me with a Title Insurance document with reference to the following;"Subject to an encroachment of an adjoining land owner's gravel drive on the subject premises, as shown by the survey.. ect.. " However they could not provide a survey. However, this is not what I'm seeing on the county site, its the subject's driveway that is on the neighboring parcel. I told them I would need to write the report subject to an extraordinary assumption of their being legal ingress/egress. However, the lender is wanting me to right it "As Is" because it is an REO. Would it be okay to write this as "As Is" or should it be "Subject To"?
Thanks!

Does the site have a helicopter pad? Got to fly above 360 ft or so to access. lol
 

Rob Frazier

Sophomore Member
Joined
Jul 6, 2005
Professional Status
Certified General Appraiser
State
Maryland
Go back to the basics and re-read USPAP. Client is giving you an assignment condition. Can you provide credible results if you appraise it with an extraordinary assumption? The lender is trying to see where they are on the collateral. They may be in real trouble here. I had one like this with with CITI and they finally decided not to buy the property at the sheriff's foreclosure sale. They just ate the loan because it was a better alternative than getting title to a property with no access (and a hostile neighbor - the father of the mortgagor who had stopped making payments). Its possible that the person who wants you to churn through the process and produce a report does not reallly undersand the depth of agricultural by-product they are standing in.
 
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