• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

FHA - Septic/Well Question

Status
Not open for further replies.

tmeyer

Sophomore Member
Joined
Feb 14, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
I have a FHA Appraisal. The homeowner does not know where the septic field is located. She has no records (surverys/plat maps) of the subject. How am I to tell where this is? Who has this information? Please help
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Utilities - Well and Septic
1. Is the appraiser still required to report well, septic and property line distances on an addendum to the URAR or is this only required when problems are noted? How is the lender to determine if these distance requirements are met if the appraiser is not required to identify?
[FONT=Times New Roman,Times New Roman]The appraiser is not required to sketch the distances between the well and septic, however, he or she should be mindful of FHA's minimum distance requirements between private wells and sources of pollution (septic systems) in the performance of FHA appraisals; and, if discernible, comment on them. Prudent appraisal practice would have the appraiser requesting a copy of a survey from the homeowner, if available.
If the appraisal notes a distance issue it could be potential for contamination. If the appraisal notes any adverse site conditions, that may warrant further inspections or due diligence. In either case, it is the lender's decision as to whether a qualified third party should map the distances and/or require testing for compliance with local or state requirements, or, in their absence, FHA requirements. Appraisers are expected to have geographic competency, which would include familiarity with local or customary inspection requirements. Local or customary requirements should be noted within the appropriate area of the appraisal report. However, the decision to require a test, certification or inspection, other than what is automatically required as noted in ML 2005-48, is made by the lender and FHA requires the lender to be familiar with the market areas in which they lend.
[/FONT]2. Is it mandatory for a well/septic report to show distance to lot lines?
[FONT=Times New Roman,Times New Roman]There is no standardized well/septic report and its contents would typically be determined by what is requested[/FONT][FONT=Times New Roman,Times New Roman]. [/FONT][FONT=Times New Roman,Times New Roman]If a lender determines that there is a need to confirm distances between well and septic systems, or lot lines, then the lender would specifically request that a qualified third party measure such distances.
[/FONT]
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Where did that come from Rex?

I just got this FHA "common errors" notification/informational from Quantrix and it includes:

Provide the distance between well and septic, distance of each from property line and distance of each from the drain field. The appraiser must also comment if well and septic are typical for the area.

• If well and septic are present a comment like “subject, well and septic meet FHA minimum standards” must be on the report if applicable.

• If subject property has a well and septic the appraiser must comment if public water and sewer available and if so provide an estimate of the cost to connect
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Its a FHA FAQ from January 2007:

http://www.HUD.gov/offices/hsg/sfh/appr/aprval.pdf
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Thanks. I emailed the link and a piece of my mind to Q.
 

tmeyer

Sophomore Member
Joined
Feb 14, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
So Greg, what you are saying is that Quantrix should not be requiring us to determine the distance if this information is not available?
 

tmeyer

Sophomore Member
Joined
Feb 14, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
Also, how do we know what it cost to hook-up to city utilities if they are available? Who has this information?
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
So Greg, what you are saying is that Quantrix should not be requiring us to determine the distance if this information is not available?

That's what I'm saying.

Also, how do we know what it cost to hook-up to city utilities if they are available? Who has this information?

It's our job to report on availability. It is the lender's job to determine feasibility.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Also, how do we know what it cost to hook-up to city utilities if they are available? Who has this information?

In many areas you can simply call the water authority and they will tell you what the hook up charge is for the water and sewer.....its not a secret.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
That's just the permitting and cost of connecting to the sysystem.

What about when the main is 100 feet or 300 feet from the property? Or on the next block? Trenching and pipe laying can cost more than $100 per linear foot.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks