Question from a reporter: Do appraisers evaluate title?

[Michigan CG]

We don't do title searches.

Ellen is an idiot.

 

[Pittsburgh Pete]

We don't do title searches.

Ellen is an idiot.

"Brevity is the soul of wit." Very brief, very true!!

 

[Tony V]

Amazing. I am wondering what her what is behind her attempt to deflect fault and attempt to push blame our way. It is reminiscent of those who fully blamed the appraisers for the housing collapse. It was our fault that the powers that be were lending 100+% the values of the homes. It was also our fault that liar loans defaulted. It seems to show a pattern..

To the O P. See if you can get any info on the person who posted the comment and see where they are attempting to go with their statement.

I think that the Michigan guy got it right...

 

[The Warrior Monk]

As appraisers, we are bound to utilize the URAR (Uniform Residential Appraisal Report) form as provided by Fannie Mae for all reports which may end up at Fannie as a result of secondary market sale.

On page one of the preprinted Limiting Conditions is this caveat:

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser’s certification in this report is subject to the following assumptions and limiting conditions:

1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title.

Mary's post highlights what is included in the vast majority of residential lending appraisals, including all Fannie/Freddie appraisals.

 

[Kevin A. Spellman]

I just finished a land report in excess of ten-million dollars and if I did not review the title. My value could easily have been in error.

Once a property is improved the deed does can become mechanical and it is just a transfer of ownership typically with the same descriptions, unless the boundaries change. I review every deed for my subject property and also for the sales as most assignments I received are complex with rights to recreational waters. I have visited several different Registries of Deeds in MA and well before they had public computers. Most appraisers do not review deeds here in MA. I cannot perform my valuation service without the review of the deed. It is a habit I created 20 years ago when I decided to become a skilled appraiser and expanded my service beyond just lenders.

 

[CANative]

I just finished a land report in excess of ten-million dollars and if I did not review the title. My value could easily have been in error.

Once a property is improved the deed does can become mechanical and it is just a transfer of ownership typically with the same descriptions, unless the boundaries change. I review every deed for my subject property and also for the sales as most assignments I received are complex with rights to recreational waters. I have visited several different Registries of Deeds in MA and well before they had public computers. Most appraisers do not review deeds here in MA. I cannot perform my valuation service without the review of the deed. It is a habit I created 20 years ago when I decided to become a skilled appraiser and expanded my service beyond just lenders.

So you have the title expertise and resources to figure out a complete chain of title including the various bits and pieces of the mortgage note and rights that get shuttled around, sold off and/or transferred to various entities over time?

 

[dobie]

Why does someone from Massachusetts say "y'all".

 

[Kevin A. Spellman]

I review the rights and not a lender-lien-holder's position. Ye I could easily become a Title Examiner in less than a week if I chose to change careers.

 

[AnonApprsr]

I assume correct title, it's not my job.

 

[Kevin A. Spellman]

In MA you have to be careful with the assemblage of small lots and multiple lots on one deed. This is quite common with properties near recreational waters. I had an assignment in Marshfield, MA the septic lot was a half of a mile away from the subject and the septic line went beneath a town road with no easement from the town. It was never recorded.

Another assignment was a million dollar property and the family failed to transfer a lot with the frontage on the road and the family member who owned the road frontage lot was in a nursing home receiving state funds for the nursing-care. The home-owner was quite nervous about the nursing home asking for hundreds of thousands of dollars for the frontage-lot. This property was financed three times and the prior closing-attorney did not pick it up. The bank was very happy with my title search and findings as they were holding the current mortgage. The home-owner was very pleased with my services and they got the frontage lot for nothing. The lot was worthless without the rights to the house-lot. In MA it is illegal to create a land-lock parcel. The home-owner had standing to receive the frontage lot as it was a mistake when the family-transfer occurred.

I enjoy reviewing deeds. It gives me product knowledge and an edge my competition.