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Ownership Change After Date Of Appraisal

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Atlanta CG

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Appraisal was dated December 5. Was ordered as a refinance but the legal owner was someone else as the borrower was under a lease-purchase. The title finally transferred on December 16. Do I have to do a new appraisal or can I do a 1004D update with the new ownership?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
New owner,
New appraisal, with transfer history of the subject property within the past 3 years.
New effective date of value, that is contemporary with the new ownership date.

All of which are lending issues, but purpose of your report, is for lending issues.

Oh, and new fee too.

.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
good question! Imo you can do a 1004 D update and note the new owner change, though I don't understand why back on Dec 5, if the borrower had a lease-purchase agreement it was done as a refinance. See what others think...this is an odd situation so caution might indicate a new assignment.
 

Meandering

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Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
And don't forget to state the most recent transfer of the subject was not an arm's length transaction.

.
 

Meandering

Elite Member
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Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
And actually,
if the tenant had not transferred ownership prior to your effective date of value,
you should not have produced an appraisal report to be used for refinance, by someone who was not the owner.
Warning Bells
Warning Bells.
You could have produced an appraisal report for a purchase mortgage for a borrower who was not the current owner.
But you did not say that's what you did.

New report, New report, New report.

.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Actually this is fairly common in California especially when the lease option allowed a portion of the rent to go as a down payment. Either way you have already inspected the property and I assume the value is not going to change so contact the lender and get direction.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Actually this is fairly common in California especially when the lease option allowed a portion of the rent to go as a down payment. Either way you have already inspected the property and I assume the value is not going to change so contact the lender and get direction.

Really? It's common to refinance a property you have not yet purchased and don't own, and may or may not have an equitable interest, depending on the verbiage in a lease agreement?

Must have their own set of federal banking laws in California.

In any case,
if the first appraisal was stated as "fee simple" for the "owner" the equitable interest of a lease purchase tenant would have made that "fee simple" of the owner a HC,
which needed to be stated in the first appraisal.

:eek:

So many rules to follow.

:eek:

So few who read them.

.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
And don't forget to state the most recent transfer of the subject was not an arm's length transaction.

.

Care to explain what information you gleamed from the original post that showed the parties were related or under duress?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Care to explain what information you gleamed from the original post that showed the parties were related or under duress?

A lease purchase contract.
would indicate a pre-existing relationship,
depending on the terms of the contract,
the opportunity to question, when the property was exposed to the current market.... recently or years and years ago, if at all.
the opportunity to question the pre-establishment or not of a buy out purchase price, which would demonstrate an ongoing relationship with vested interests of both parties that may or may not reflect current market parameters.

.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Appraisal was dated December 5. Was ordered as a refinance but the legal owner was someone else as the borrower was under a lease-purchase. The title finally transferred on December 16. Do I have to do a new appraisal or can I do a 1004D update with the new ownership?

Last I checked, the valuation section of the 1004D happens to be a new appraisal report and a new appraisal. The problematic question is does the scope of work obtain credible results for the intended use without being misleading?
 
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