Property without an APN due to non-finaled lot split

[shrubberyvaluation]

No plot plan? How does the builder know where the house is going. Most zoning has setbacks, yard requirements, lot coverage requirements, etc. If the split has been applied for. Where is the paperwork for the split application. You would think that the application would have to delineate the split

I didn't see anything about new improvements, sounds like they are existing.

 

[Dublin ohio]

I didn't see anything about new improvements, sounds like they are existing.

You are correct. I read it too fast. But you would still think that the split application would have to have proposed split description of some kind.

 

[KHS445]

Do you believe the appraiser should be the one hunting this down? I'd prefer to ask my client for the information. Aside from saving time, I think it would also head off any miscommunication between the appraiser and the client on what is being appraised.

My business model may be different than yours. I work directly with all my clients, no middle person or AMC. My clients hire me to provide them with an appraisal. They will provide me with the information they have and then expect me to chase down anything else I believe is necessary. This looks like it would be one of those situations. It appears the exact legal description was not available when the appraisal was ordered. I would contact the those most involved in requesting the split and go from there. I would also send my client an email explaining what issues(s) I was having and what steps I had taken to correct it. Included in that email would be an estimate of the additional time required to complete the report and depending on what information I don't have if they want me to move ahead without it. You would be surprised how excited someone gets when the lender calls and says your request is dead in the water until the appraiser receives this information.

Yes, this does require some time and effort on my part. My fees are not extravagant, but they are set so that a couple of hours of time for unexpected work is figured in. When asked to bid, which is only about 50% of the time, I provide the client with a not to exceed bid. Many times, my final invoice will be slightly below the not to exceed bid. If my time runs over the not to exceed bid, then I eat it. May not work for others, but my clients know that once I provide them with a bid, I will not be coming back to them and say the project was more time consuming than expected and I need to be paid more.

A quick and recent example. I received an assignment, a couple of weeks ago, from an out of the area client for an appraisal of a to be constructed dollar type store. While there was a lot of documentation provided, from a location standpoint all I received was the name of the County, the seller and the buyer. The seller owned multiple parcels, so I searched Planning Commission minutes and found a request for a parcel split involving the developer which included the proposed legal description. Probably took about 15 minutes of my time, which is less time than it would have taken to throw a hissy fit and demand the lender get me the information.

One always has the choice of being a provider of professional services or an order taker.

 

[TerryRohrer]

My business model may be different than yours. I work directly with all my clients, no middle person or AMC. My clients hire me to provide them with an appraisal. They will provide me with the information they have and then expect me to chase down anything else I believe is necessary. This looks like it would be one of those situations. It appears the exact legal description was not available when the appraisal was ordered. I would contact the those most involved in requesting the split and go from there. I would also send my client an email explaining what issues(s) I was having and what steps I had taken to correct it. Included in that email would be an estimate of the additional time required to complete the report and depending on what information I don't have if they want me to move ahead without it. You would be surprised how excited someone gets when the lender calls and says your request is dead in the water until the appraiser receives this information.

Yes, this does require some time and effort on my part. My fees are not extravagant, but they are set so that a couple of hours of time for unexpected work is figured in. When asked to bid, which is only about 50% of the time, I provide the client with a not to exceed bid. Many times, my final invoice will be slightly below the not to exceed bid. If my time runs over the not to exceed bid, then I eat it. May not work for others, but my clients know that once I provide them with a bid, I will not be coming back to them and say the project was more time consuming than expected and I need to be paid more.

A quick and recent example. I received an assignment, a couple of weeks ago, from an out of the area client for an appraisal of a to be constructed dollar type store. While there was a lot of documentation provided, from a location standpoint all I received was the name of the County, the seller and the buyer. The seller owned multiple parcels, so I searched Planning Commission minutes and found a request for a parcel split involving the developer which included the proposed legal description. Probably took about 15 minutes of my time, which is less time than it would have taken to throw a hissy fit and demand the lender get me the information.

One always has the choice of being a provider of professional services or an order taker.

There is a different level of liability and risk when the appraiser is identifying and determining legal descriptions, etc. Years ago, a friend of mine was appraising a large ranch and was not provided a legal description. He apparently didn't find one 40 acre tract (in thousands of acres) and didn't include it in the appraisal. A few years on, the bank discovered that oversight and sued him. I don't recall the cost to extract himself from the situation, but it was more than the appraisal fee. I would never generate a legal description for anyone. Why would we tell someone what they want appraised, rather than the reverse?

 

[sputnam]

Doesn't sound like much of a problem for the appraiser.. other than the hassle. USPAP does not require the appraiser to report a legal description. It requires that the appraisal adequately identify the property being appraised. That is part of identifying the problem... something that should happen before the assignment is accepted. In a case where it's a portion of a larger parcel, insist on the Client telling you which portion. "Just an acre." is not an accepable instruction. If they can't or won't provide you with a better description.... could be a legal, could be a survey....decline the assignment.

 

[shrubberyvaluation]

Doesn't sound like much of a problem for the appraiser.. other than the hassle. USPAP does not require the appraiser to report a legal description. It requires that the appraisal adequately identify the property being appraised. That is part of identifying the problem... something that should happen before the assignment is accepted. In a case where it's a portion of a larger parcel, insist on the Client telling you which portion. "Just an acre." is not an accepable instruction. If they can't or won't provide you with a better description.... could be a legal, could be a survey....decline the assignment.

I can't imagine going through this hassle unless its a good client and I would need confirmation after my research that what I am appraising is what the client wants appraised.

 

[sputnam]

I can't imagine going through this hassle unless its a good client and I would need confirmation after my research that what I am appraising is what the client wants appraised.

No.. you don't need confirmation after. You need to have information you consider reliable before you begin the analyses. In the past, when they've asked for an appraisal of an indefinite portion of a larger property... say, the one acre they are selling to their newly married nephew...I ask, "Which acre?" "What are the dimensions?" Get the answers in writing. If you can get a survey, get one. The hassle factor is a fee issue and a business decision. If you don't want to do it, there is an appraiser who will. If you want to only do the easy ones... you can do that... but, if you want to keep learning and becoming a better appraiser,... then you will do the harder ones too.

 

[Fishlips]

Many thanks to all who responded. The saga continues, as the county is dragging its feet regarding the final lot split recordation (assigning a parcel#, parcel map with dimensions (sole source for dimensions), and legal desc. Also of major importance, the "mother parcel" formerly consisting of two contiguous 50'x100' rectangular city lots, is to be separated via the split (mother originally SFR on one lot; detached granny on the other (which is the subject lot). The granny, my subject, has been completely rehabbed and is being sold as a separate SFR (conventional FNMA transaction), while the original main dwelling was razed and rebuilt as SFR with attached studio. In rebuilding the former main dwelling, the builder either disregarded the original lot lines & has created a massive encroachment on the subject lot, or the lot lines have been adjusted via the split. After 6 weeks subsequent to appraisal submission to client, Title now tells the client (Guaranteed Rate Mtg) the appraiser should find "a work-around" to not having the correct site area, dimensions, or legal description. I think I already have, with the extraordinary assumption attached to the value (which assumes a fully marketable title with its own legal description, parcel number, and site area/lot dimensions). The county has not returned my repeated requests for additional information, the agent has not, the property is in receivership so am unsure of a true seller to contact. Anyway, any added input into this situation would be welcome. Again, I am truly grateful for your kind responses.

 

[George Hatch]

The County isn't the party that has proposed this lot split; the property owner is. And they will still have access to whatever documentation they have submitted to the County in their application . Stop asking the county. Go to the property owner; they have the site plan right at their fingertips. You don't need the entire package, just a site plan that would identify what they're trying to do.

 

[glenn walker]

Assignment is a purchase transaction of a lot and improvements. Subject lot is the result of a lot split not yet final by the county. No APN, no lot dimensions/area, no legal description, no info specific to the subject site separate from the "mother" lot from which it is being split. Client is of no help, title is of no help, agents involved are no help, and the county has nothing to say beyond the fact the split has been applied for, but has yet to be finaled. What is the best way to handle this situation?

Dont do it as a Submitted Lot Split is nothing but an application and along with that application comes a list given to the Potential lot splitter what will lay out all required engineering-surveys etc. Right now they have nothing as we have submitted many lot splits over the years that were denied or had to be modified . The need civil engineer-a surveyor to do all preliminary work to determine its even feasible and what the final dimensions will be. It will only be a lot split after is been approved and then it will convert from a tentative parcel map and from a conceptual approval by the City's Planning Commission into a legal subdivision of land.