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Encroachment

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Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
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Just got request for purchase appraisal. Obvious encroachment of detached garage onto adjoining property. Maybe 1 wall of detached garage might be on subject site. Also disclosed within contract. Home built in 1970. Garage built in 1974 with same owner since home built. Estate sale. Debating on how to approach it. 1) Include it and disclose the possible encroachment with the assumption that use by buyer will not be interfered with. 2) Disclose it's existence but not include it since I have no information than guarantees the owner of the adjacent property will permit it's continued use or even existence. I think #2. Any thought would be appreciated. Never ran into one like this in 23 years
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Disclose. Recommend survey and quiet title.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Depending on your state law,
but in PA
I would DEFINATELY mention
Adverse possession,
open and notorious for more than 25 years and recommend legal advise to clear up the issue, then work with an EA that the land under the garage could be gained via Adverse possession, which would include calculating a new estimated assessment and estimate RE tax for the subject based on the EA that the land under the garage would be titled to the subject

But it depends on your state law.

.
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
Depending on your state law,
but in PA
I would DEFINATELY mention
Adverse possession,
open and notorious for more than 25 years and recommend legal advise to clear up the issue, then work with an EA that the land under the garage could be gained via Adverse possession, which would include calculating a new estimated assessment and estimate RE tax for the subject based on the EA that the land under the garage would be titled to the subject

But it depends on your state law.

.

Have adverse possession in Ohio. This situation would fit the general parameters in the law. Especially the uninterrupted use for 21 years minimum. But doubt lender would accept EA since they want as is.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
As is, it is encroaching on another parcel.

Or, the garage of the other parcel is encroaching on the subject.

Screw ball lender can't ask for as-is, without legally determining who owns the garage, to even know WHAT it is, as-is.

So you're only way out is an EA and recommend legal counsel.

.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Let's face it. Because the garage is on two properties, you can't credibly say who owns the garage and can only EA that the homeowner owns it based on what the homeowner is telling you. The other issue is to verify the length of the lot, from the deed to the tax map. Wouldn't be the first time I've seen similar types of tax maps drawn onto the earth incorrectly.

.
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
Let's face it. Because the garage is on two properties, you can't credibly say who owns the garage and can only EA that the homeowner owns it based on what the homeowner is telling you. The other issue is to verify the length of the lot, from the deed to the tax map. Wouldn't be the first time I've seen similar types of tax maps drawn onto the earth incorrectly.

.
This GIS in this county is pretty accurate. But not perfect. Could also be possible that garage is completely on adjacent lot. Since this is a purchase. I think I will put this back in the lenders court. Only way to resolve this is to involve the executors of the estate. All they did in purchase contract was disclose possible encroachment based on same GIS data I am using.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Disclose it, make no assumption about continued use since how do you know?

Imo is there a potential problem...would the lender want the garage removed ?/ ( call your client and ask, would they finance a property that is in zoning violation) , or might garage value be adversely affected since at some point in future neighbor or county might make it be torn down?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Disclose it, make no assumption about continued use since how do you know?

Imo is there a potential problem...would the lender want the garage removed ?/ ( call your client and ask, would they finance a property that is in zoning violation) , or might garage value be adversely affected since at some point in future neighbor or county might make it be torn down?

J.

It's not credible to make no assumption.

Because it not clear, who owns the garage, because it appears to be on two different lots, having two different owners.

It must be addressed, this is a USPAP requirement.

Remember that "public trust" thing? This is where it comes into play.

Stop playing lemming to lenders. Lenders will lend on anything the appraiser is responsible for, and then claim mortgage fraud if it all goes bad later.

And let's not even consider the borrower who thinks they are buying a house with a garage, until the other lot owner shows up and bulldozes "their" garage.

.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
It appears the garage is encroaching. You should be able to determine who claims ownership of the garage. Comment on it and condition your appraisal on resolving the issue.
 
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