Seller owner?

[Fernando]

Last time was just a signature.
This time it's printed "Owner of Record".
Is that acceptable as Shrubberyvaluation has indicated as common?
Or should I check yes and give explanation.

 

[Mike Ault]

Last time was just a signature.
This time it's printed "Owner of Record".
Is that acceptable as Shrubberyvaluation has indicated as common?
Or should I check yes and give explanation.

"Owner of Record" would not be acceptable because you would be unable to analyze the contract, you don't know if the seller is under any duress and cannot determine if the transaction is arm's-length. I think your instincts are correct this time, I would make a phone call to my client and if a corrected contract was not forthcoming I would check the "no" box as you suggest and bring an automatic hard stop to the whole appraisal process. Fannie Mae will not let appraisals proceed through the UDCP where the seller is not the owner of record.

 

[Fernando]

I left it blank and software has hard stop.
You're right. I'll let agent send me amended contract. Otherwise this appraisal will drag on.

 

[shrubberyvaluation]

Common? Then what do you check?
I was going to check no and state owner of record is not sufficient.

If the seller name is the owner of record then I check yes.

 

[Fernando]

If the seller name is the owner of record then I check yes.

The agent is a veteran. She should know better than put owner of record.
Have other appraisers been letting this go?

 

[andrew81]

This week I did a purchase appraisal.
The Owner of Public Record is Jane Doe. Jane Doe's daughter, June (Doe) Smith, has been renting the property for a few years and is the name listed on the lease agreement.
The seller's name on the purchase contract is The Estate of Jane Doe, and signed by Jane's daughter June (Doe) Smith.
The buyer's name on the purchase contract is June Smith and John Smith, and signed by Jane's daughter June (Doe) Smith.

Is the occupant the owner, tenant, or vacant? Is the seller the owner of public record?

I marked it as tenant occupied and NO to seller of public record with a summary of my analysis. This was for an in-house lender that does not do FNMA, FHA, or VA. I will likely not have any revision request to give an update.

 

[Mike Ault]

The agent is a veteran. She should know better than put owner of record.
Have other appraisers been letting this go?

I have seen this in complicated estates with too many sellers to fit in the contract blank. Many times online resources don't reflect recent changes in ownership. Whether found by title report or contract exhibit you need to determine who is truly selling the property – is it an estate, foreclosure, or a typically motivated transaction? If I was going to try to slide "Owner of Record" by on a URAR form I would have extensive commentary detailing my attempts to obtain properly executed documents and perform my required analysis of the transaction.

 

[Mike Ault]

This week I did a purchase appraisal.
The Owner of Public Record is Jane Doe. Jane Doe's daughter, June (Doe) Smith, has been renting the property for a few years and is the name listed on the lease agreement.
The seller's name on the purchase contract is The Estate of Jane Doe, and signed by Jane's daughter June (Doe) Smith.
The buyer's name on the purchase contract is June Smith and John Smith.

Is the occupant the owner, tenant, or vacant? Is the seller the owner of public record?

I marked it as tenant occupied and NO to seller of public record with summary of my analysis.

I'm betting next week they will send you a title report showing that the real owner of public record at time of sale was the "Estate of Jane Doe" and asking you to revise the appraisal. It's happened to me many times, relocation company transactions are rarely reflected as "owner of record" in a timely manner which causes confusion.

 

[Fernando]

I had requested a prelim several days ago and haven't heard from client.
This should not be an issue with our appraisal but a lender issue to verify such documentation.

 

[Mike Ault]

I had requested a prelim several days ago and haven't heard from client.
This should not be an issue with our appraisal but a lender issue to verify such documentation.

Lots of appraisers believe we shouldn't be provided a copy of the contract due to bias and their points are well taken however there have been plenty of times over the years I was happy that I read the contract prior to appraising the subject, lots of interesting information in those (especially in the addendum's). Big changes in that process on the horizon – pretty soon there will be a picture of a house for sale on the net with the GSE approved loan limit similar to a bluebook. "Here is the AVM that goes with the property, financing available at XYZ lender". Then the contract negotiations start from there. Buyers and sellers will eventually conform to the new financing system because they won't have any choice.