Residential With Non-contiguous Lots

[SJ GLO]

The subject is made up of 3 non-contiguous lots.
Lot 1 - house + 6 acres
Lots 2 & 3 - vacant wood lots - 10 acres each 1 mile away
All on the same deed. Zoning requires 25 acres. Per the zoning official, lots 2 & 3 cannot be separated from lot 1.

This is a conventional refi. I bumped it back to the lender saying I couldn't complete it. I cannot find any comps with lots that are separated. They send title work with with just the one lot, saying they wont accept multiple parcels separated by that distance and that to use just lot 1 and note that this is at the discretion of the lender.

Has anyone had a similar situation?

The owner uses lots 2&3 to hunt, so its not worthless to them.

 

[Howard Klahr]

Is this a FHA or Fannie deal?

 

[hastalavista]

i have not had the same situation (as I recall) but I don't see why this couldn't be done legitimately.

Describe the situation, explain that your assignment is to value the single parcel, and do it.

I'm assuming the other parcels have their own separate legal identity. They should be able to be sold individually if the owner was so moved. The deed identifies who owns the property. The legal descriptions identify what the property is. It sounds to me like there are three different sites/lots under one single ownership. The client only wants to lend on one of those three (although it may wrap the mortgage on all three as an abundance of care... but that isn't your problem).

My 2-cents.

 

[SJ GLO]

Is this a FHA or Fannie deal?

Fannie

 

[SJ GLO]

i have not had the same situation (as I recall) but I don't see why this couldn't be done legitimately.

Describe the situation, explain that your assignment is to value the single parcel, and do it.

I'm assuming the other parcels have their own separate legal identity. They should be able to be sold individually if the owner was so moved. The deed identifies who owns the property. The legal descriptions identify what the property is. It sounds to me like there are three different sites/lots under one single ownership. The client only wants to lend on one of those three (although it may wrap the mortgage on all three as an abundance of care... but that isn't your problem).

My 2-cents.

Per the zoning officer, they cannot be sold separately since all 3 lots were needed to meet the minimum lot size. Not sure I agree with her.

 

[SJ GLO]

They do have their own tax ID numbers but are valued at zero.

 

[Howard Klahr]

I don't see why this couldn't be done legitimately.

A) because to segregate the parcels would result in a illegal use (min site size ten)
B) certain guidelines won't allow for partial valuation. Need to know under whose guidelines assignment is being performed

 

[hastalavista]

A) because to segregate the parcels would result in a illegal use (min site size ten)
B) certain guidelines won't allow for partial valuation. Need to know under whose guidelines assignment is being performed

I failed to read this part:

Per the zoning official, lots 2 & 3 cannot be separated from lot 1.

(don't ask me how!)

OP- disregard my advice.

 

[nstanbru]

Not sure I agree with her.

Not sure I do either. The parcels may have been created prior to the current zoning requirements regarding minimum parcel size. Have you checked with them about the possibility of them being "grandfathered"?

 

[BRCJR]

From one Licensed Appraiser to another this could be, most likely, considered complex. Think about not doing this assignment if the lots cannot be separated as stated.