New MH on owner's site

[Zoe]

I can't speak for any other reviewer. If your report landed on my desk here's how I would view the issue you raised. If you put the comments about the construction contract in the contract section of the form... and you got it right... the appraisal would pass. If you put the comments about the construction contract elsewhere in the report... and you got it right... the appraisal would pass. If you didn't comment on the construction contract, you would get a revision request.

And I would have included a copy of the purchase/construction contract on the DW. That way I can pretty much tell what standards the DW is going to be built to and reference that contract as my subject to completion per plans and specs. And subject to a final inspection by the appraiser.

 

[Zoe]

There are questions and check boxes in a FNMA form on page 1 in the contract section and/or otherwise that do not ryhme with the op's situation to list this contract in that section.

All you need is a lawyer telling you that you are being misleading. I try to limit my risk in case things go south.

 

[Zoe]

It is my opinion that the contract section is left blank because it technically is not a sale. It is new construction. For years I have submitted the reports without the contract section filled out and noted the terms of the agreement in an addenda. On recent report the reviewer is insisting I include the construction agreement in the contract section as if it is a purchase. I am interested in your thoughts. I can't believe I am wrong and twenty years of reports have been accepted as submitted, many to this same lender. Thoughts?

Now since you scolded me for being in wrong thread. Have I give you enough thoughts?

LOL

All my thoughts are in your best interests and any party involved.

Sometimes these threads get confusing. I think I am in one thread and I am in another. LOL

Always remember your specialty. You appraise real property rights. You are the professional. Your reviewer .......................very questionable at professional status?

Your reviewer would have a hard time with me. I hope I have made that clear to you.

It is not a business decision with me. It all revolves around real property rights on a GSE form.

Okay, if you don't accept? I punt. Go get somebody else. I have better things to do with my time. Your cancellation fee as we agreed upon is $X

Do you understand?

In a narrative report, you don't run into the issues on a gse form. I hope I helped you a little.

 

[Zoe]

Many reviewers on GSE related mortgages have no clue. You do. I will leave it at that. Wish you well.

 

[mp2277]

A deed does not create, modify, or in anyway alter a legal description. It doesn't matter if one or a thousands tracts are included on a single deed...each tract has a unique legal description created by the survey that originally defined it. Much like a dozens eggs in the same carton are still 12 individual eggs.

OK, you go ahead and appraise half of a deeded property without being subject to division or separation of the lots on the deed. Let me now haw they record that. I pass.

 

[TerryRohrer]

OK, you go ahead and appraise half of a deeded property without being subject to division or separation of the lots on the deed. Let me now haw they record that. I pass.

It is unfortunate (unless you have too much business) that this far into the game, you do not understand what a legal description is, and why a deed does not impact legal descriptions, but transfers title. I can not think of a circumstance where a legal description is not created before a deed can be recorded (that is what government surveys [followed by Patent Deeds] and subdivisions/surveys and metes and bounds descriptions are for). Hence, it is not the same as the chicken/egg conundrum...the legal description has to come first so the property being transferred can be precisely described in the deed to ensure accurate location of the tract.

If I want to sell one of two lots I acquired in a single transaction (with title to both transferred to me on a single deed), the new deed would be from me to the buyer and include the legal description of the single lot I wanted to sell. The Clerk and Recorder would simply record it. Not subject to anything. Plus, USPAP allows an appraiser to appraise a physical segment of a property without a hypothetical condition. Even if a seller was selling half of a single tract, say Lot 1 of C/S 200, an appraiser can appraise "the east half of Lot 1 of C/S 200" without any hypothetical conditions. But carry on. As Paul Harvey used to say, "you can't teach a fence post if the fence post doesn't want to learn."

"What is a Legal Description?​

A legal description is the precise location and measurement of real property. While an address is often used to locate a property, legal descriptions are used when transferring title because they’re more accurate. Unlike an address, it’s a unique identifier. It’s especially important when purchasing vacant lots with no address."

https://blueprinttitle.com/what-is-a-legal-description-in-real-estate/

 

[mp2277]

It is unfortunate (unless you have too much business) that this far into the game, you do not understand what a legal description is, and why a deed does not impact legal descriptions, but transfers title. I can not think of a circumstance where a legal description is not created before a deed can be recorded (that is what government surveys [followed by Patent Deeds] and subdivisions/surveys and metes and bounds descriptions are for). Hence, it is not the same as the chicken/egg conundrum...the legal description has to come first so the property being transferred can be precisely described in the deed to ensure accurate location of the tract.

If I want to sell one of two lots I acquired in a single transaction (with title to both transferred to me on a single deed), the new deed would be from me to the buyer and include the legal description of the single lot I wanted to sell. The Clerk and Recorder would simply record it. Not subject to anything. Plus, USPAP allows an appraiser to appraise a physical segment of a property without a hypothetical condition. Even if a seller was selling half of a single tract, say Lot 1 of C/S 200, an appraiser can appraise "the east half of Lot 1 of C/S 200" without any hypothetical conditions. But carry on. As Paul Harvey used to say, "you can't teach a fence post if the fence post doesn't want to learn."

"What is a Legal Description?​

A legal description is the precise location and measurement of real property. While an address is often used to locate a property, legal descriptions are used when transferring title because they’re more accurate. Unlike an address, it’s a unique identifier. It’s especially important when purchasing vacant lots with no address."

https://blueprinttitle.com/what-is-a-legal-description-in-real-estate/

Enjoy your smugness. FYI I didn't nor will I read past your insulting and self serving, arrogant first sentence. People like you are intolerable to me. Adios

 

[mp2277]

And I would have included a copy of the purchase/construction contract on the DW. That way I can pretty much tell what standards the DW is going to be built to and reference that contract as my subject to completion per plans and specs. And subject to a final inspection by the appraiser.

However if you fill in the contract section on a transaction like this you can't "get it right" LOL

 

[Webbed Feet]

I certainly am not one to fault anyone for getting confused. While we are on this subject though I recently had an issue where there was a proposed new DW on two fifteen acre tracts. They were deeded together but had different parcel numbers. I submitted it with thirty acres. The lender requested that I separate them and use only fifteen acres. I felt they should have requested that upfront, however I told them the only way I could do that was subject to separating the deed. Do you think I was correct? Thanks

I could sell the entire state of Washington and the state of Texas all together on one deed. Do I need to insist Washington is taken off the deed to opine a value for it? The deed is not the answer. The answer is things like highest and best use, legal lot of record, excess versus surplus land, etc. We do not appraise deeds at least I have never been asked to do so.

 

[Webbed Feet]

It is my opinion that the contract section is left blank because it technically is not a sale. It is new construction. For years I have submitted the reports without the contract section filled out and noted the terms of the agreement in an addenda. On recent report the reviewer is insisting I include the construction agreement in the contract section as if it is a purchase. I am interested in your thoughts. I can't believe I am wrong and twenty years of reports have been accepted as submitted, many to this same lender. Thoughts?

I feel the confusion of this thread is the original post and many that did not read it. I assume that "MH" in the title is for manufactured home, which I assume is a HUD tagged pre-built piece of personal property being trucked in and then set up on real estate already owned by the buyer of the manufactured home. If I am correct, what sale of real estate is taking place???? There isn't any sale of real estate taking place. The lender might as well be asking for the "sale contract" for a 85 inch TV set purchase that includes bringing it into a house and putting it up on a wall. The only "construction" might be some sort of foundation, utilities brought in, septic system, etc. No real estate is being sold. There is no real estate sales contract. I am right? My response would be that I will analyze the real estate sales contract just as soon as the lender can provide one that is actually applicable to a sale of the subject property and the loan.