Legal non-conforming, and illegal?

[Smokey Bear]

I'm doing a duplex/triplex - the duplex is legal non-conforming, and there's an additional unit done without permits, no way will it ever be legal, since the zoning is single family + accessory, and the duplex use is grandfathered.

Aside from wishing I could be there to watch the flip out when they read it, should I be checking 2 boxes here ? Legal-nonconforming AND illegal?

 

[CANative]

UW's hate being double crossed. Why not leave the boxes unchecked and type in "see comments" and then explain the situation?

 

[Chris Harrison]

Is this a trick question?

Three living units on one property that's zoned single-family with a assessory apartment.

Answer: Illegal, see zoning.

Chris

 

[Walter Kirk]

Don't be so quick to call it illegal. Do you know if the third unit was there before the zoning ordinance or before the current owner's purchase? Zoning decisions are not the provence of appraisers, we observe, analize and report. In this case I would require the client to provide the legal determination.

 

[Smokey Bear]

Chris - if the basement (unpermitted) unit weren't finished, it would be legal, nonconforming, not illegal. So that's why I think both - you can cure the illegal part, it's not the whole structure that's illegal.

 

[Mike Kennedy]

:icon_idea: Agree with Chris............the Use of the Site?Lot is Illegal. (not on a segmented basis) .......as such, the Site/Lot per the definition of real property "site & legally permissable, transferrable Use" cannot transfer as a legal use.

 

[Smokey Bear]

The lot and duplex are NOT illegal, they are legal, non-conforming. The ONLY illegal part is the basement unit, easy to cure.

 

[Restrain]

It may be illegal. However.....in some markets, even though the basement unit is illegal, I have seen the units sell with these "illegal" units and the market give value for them.

Disclose what you have found, and, if necessary, explain how the market is reacting to the units.

 

[Mike Kennedy]

The lot and duplex are NOT illegal, they are legal, non-conforming. The ONLY illegal part is the basement unit, easy to cure.

As of the Effective Date of Appraisal, the current use of the Site represented an Illegal Use. "As-Is". No different than if they built an attached garage with no C.O.

"Curing the violation" is a separate matter. Fannie's guidelines support RStrahan's comment........however, the Illegal Use must still be noted, then addressed in Compliance Comments........and, if common/typical in market, that must be supported by Comparables with similar illegal uses..... if said support is viable .....then Fannie WILL fund. :icon_idea:

 

[Chris Harrison]

Cynthia,

You are appraising the current improvements and the current zoning, if they have a variance let them present that to the lender. I maintain the property is illegal as improved.

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