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Easement Research

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Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
So...turned in an otherwise regular 1004 report about 3 weeks ago. No title info provided at time of engagement. Post report, lender has title work performed which shows 3 easements to private individuals/institutions. They are requesting comments on marketability of subject based upon these recorded easements.

Now on the surface, that seems reasonable, lender wants to ensure property is indeed what they think it is, with no clouds on title or loss of utility.

My question, since not included with original order, AND the actual easements are not included now--just their recordation data, am I responsible for:

A) Going to courthouse, digging all three easements up (no online access with this county), and commenting on any issues with marketability;
B) Having THEM send me copies of the easements and commenting...; or
C) Quoting them a fee to do the research to begin with, if I even want to, because I am an appraiser, not an attorney.

I guess the general question is where do appraisers' responsibilities end, and title abstractors' or attorneys' responsibilities begin on easement related issues?
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
What are the 'private individuals/institution' easements?
 

Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
What are the 'private individuals/institution' easements?
I don't know at this point. They just mention the individual's name, and book/page of the recording. Usually easements are to power companies, etc. Rarely see them to individuals. Probably why lender wants the analysis...
 

Overimprovement

Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
There is also one to the local Board of Education.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
All easement have a value, from minimal to substantial.

IMO, a typical real estate easement, such as road maintenance agreement/access easement, would be not be unusual for rural properties in my area (I have one on my property). Utility easements are also typical, water/sewer/electric.

Is it in the general course of OUR business to recognize ALL easements? No.
 

leasedfee

Member
Joined
Oct 14, 2007
Professional Status
Certified General Appraiser
State
Colorado
New scope of work. You fulfilled the original scope of work. Yes, you can evaluate and provide a revised value taking into consideration the easements. It is well within an appraiser's skill set, but you may need to get some guidance from a colleague or appraisal library to obtain competency. You can even use the same effective date, but with a new transmittal date.
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
So...did you review the deed when performing the original appraisal?
Methinks your answer to new assignment or not might be there.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
Have your client provide copies of the easement documents, the title prelim or policy and a survey with the easements plotted. Is this all that you'll need? No but it is a good start.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I believe the lender, if regulated, is obliged to provide this information to you. The title opinion should spell out terms. Ask they provide it. If they refuse then I'd refuse to comment on what you don't know. But is it a big deal to go to the courthouse yourself? I drive 25 miles one way...no step for a stepper.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I would start with saying what Timothy Lyndsey said, it is a new Scope of Work.

I would then refer to Mr. Klahr's comment.

Then I would most likely refer the client to the preprinted Scope of Work on the 1004 form and that the original appraisal was prepared following that Scope of Work.

I would then refer the client to the Limiting Conditions on the form, specifically #1.

I would then tell the client we have a new assignment and the fee cannot be determined until the client provides the information Mr. Klahr noted and that you are willing to put the NEW ASSIGNMENT on hold for a month or so while they provide a survey with all the easements on it.

Once needed information is provided I would consider the fee for the new assignment and the time it would take to figure out any value effects of the easements and whether I really wanted to continue with this NEW ASSIGNMENT for this particular client.
 
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