Duplex + ADU should be considered as Triplex?

[Dublin ohio]

The 2-story older duplex was supplemented by a very recent legal (with documented building permits) conversion of a detached garage into an ADU, with the conversion to the ADU eliminating legal requirements for an enclosed garage. It was literally a duplex with an ADU that I reported accordingly, with the client condition for me to describe it as a Triplex, on 1004 page 1.

Wait...................What!

 

[alebrewer]

A duplex with an ADU is a three unit property.

Unless it's constrained by a zoning authority that only allows 2 units to be rented... then it's a duplex with an ADU.

 

[J Grant]

The 2-story older duplex was supplemented by a very recent legal (with documented building permits) conversion of a detached garage into an ADU, with the conversion to the ADU eliminating legal requirements for an enclosed garage. It was literally a duplex with an ADU that I reported accordingly, with the client condition for me to describe it as a Triplex, on 1004 page 1.

Did you ask the client if it is for a Fannie loan, and if so, if that is why they kept pestering you to change the verbiage?

Maybe that is not the case but if it is the case, hopefully will never come up, but technically, if Fannie does not loan on a duplex with an ADU and you changed the label to a triplex they might make a loan on a property they are not supposed to-

 

[Dublin ohio]

If you google triplex. 99.9% of the answers say 3 units in one building. So why the confusion. A duplex with a detached ADU might be a 3 unit property. But not necessarily a "triplex" construction. It seems this ADU situation in CA is a real fuster cluck for appraisers and lenders

 

[J Grant]

If you google triplex. 99.9% of the answers say 3 units in one building. So why the confusion. A duplex with a detached ADU might be a 3 unit property. But not necessarily a "triplex" construction. It seems this ADU situation in CA is a real fuster cluck for appraisers and lenders

we don't get our answers from Google -but so what they say is that a triplex is 3 units in one building...

a duplex with and ADUI can function as a 3-unit property, but that third unit was approved as an ADU only in certain zoning - and per the definition, I recall the ADU third unit should be smaller than the the other units s xi

As far as I know, Fannie will not lend on a 2 unit with an ADU, but they will lend on a 3 unit.So if it is a duplex with ADU as the only legally permissible and we call it a triplex to get it past the UW for a loan to get green-lighted- it is misleading...would you agree...

 

[alebrewer]

In the areas I'm familiar with, 'Duplex' zoning typically does not allow rental of a 3rd unit. As such, if a property does - in fact - have a 3rd unit - it would be an ADU. However, in many areas (CA comes to mind), state housing affordability pushes have superseded local zoning such that ADU's are pretty much rental units now. In which case, the property is functionally a 3-unit and should be appraised as such. All RE is local.