one unit vs multi-family

[SwampFox]

Got a UW trying to get me to call a condo complex 100% multi-family. I know it's one-unit, but can't locate anything official that definitively states what's what.

Anyone know where there's an official statement/definition of what a multi-family property is?

Can/will someone with an Appraisal Institute membership check the Dictionary of Real Estate Appraisal??

 

[Meandering]

Got a UW trying to get me to call a condo complex 100% multi-family. I know it's one-unit, but can't locate anything official that definitively states what's what.

Anyone know where there's an official statement/definition of what a multi-family property is?

Can/will someone with an Appraisal Institute membership check the Dictionary of Real Estate Appraisal??

The Underwriter is an idiot.

Each deed to each condo unit is in fee simple, subject to the Condo Association. so depending on the number of units you have X fee simple interests in the real estate.

It is cluster housing, not multi-family.

In muti-family the units do not have a fee simple interest. The units typically have a leasehold interest in a unit and the fee title to all the real estate is with the land lord.

What you need is not a definition of multi-family, but a copy of your state's condo law.


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[Michigan CG]

The underwriter is an idiot.

Send him a link to this thread.

 

[Meandering]

Here,

According to 12 USCS § 1715z-22a (1), the term multifamily housing means “housing accommodations on the mortgaged property that are designed principally for residential use, conform to standards satisfactory to the Secretary, and consist of not less than 5 rental units on 1 site. These units may be detached, semidetached, row house, or multifamily structures.”

The mortgaged property is a single unit. Not 5 units. The overall common area, does not include units if it is mortgaged.


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[J Grant]

What's up with all the UW telling appraisers how to write their reports lately?

And how come the appraisers have no idea what to tell these UW?

Hard to tell which is more alarming.

 

[SwampFox]

What's up with all the UW telling appraisers how to write their reports lately?

And how come the appraisers have no idea what to tell these UW?

Hard to tell which is more alarming.

I wrote a rather long-winded response to the UW explaining the differences, tax map numbers, single families, legal entities and how they're taxed, etc and all I got back was something like "that's incorrect - still needs revision". My question to the forum was more to find hard evidence, quotes from FHA/HUD, USPAP, Appraisal Institute, or any other valid source to throw at this guy.

Thanks for taking the time to write such a helpful response

 

[SwampFox]

Michigan...agreed!

Marion...thank you!

 

[Meandering]

No prob.

I'm getting good at surfing up the Feds.

If that does not work for you, let me know and we can zing 'em with some GSE and more HUD stuff.


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[J Grant]

Thanks for the answer...it sounds like you already addressed this as well as you possibly could to this underwriter.

At this point you have to tell them that there is no need for a revision, and you won't be making one, and that you already explained why. If you want to add more verbiage about condo vs multi family you can , that is just being polite at this point.

A condo is a different form of ownership than single family or multi family, hopefully the UW understands that . a condo building is comprised of units that are individually owned, as well as each owner owning a share in the building and grounds common areas. A multi family is a property fee simple typically owned by one entity, the fact that there are two or four units within the property does not change the form of ownership.

Hope this time my post was helpful...just seems there have been a lot of posts in last couple of weeks with UW telling appraisers to do outlandish things.

 

[SwampFox]

No prob.

I'm getting good at surfing up the Feds.

If that does not work for you, let me know and we can zing 'em with some GSE and more HUD stuff.


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HUD quotes would be ideal if you know where to find 'em! I've searched & searched & searched and can't locate anything that definitely states what I'm looking for.