"Site Condo" on a 1073 Form

[MikeinLA]

FWIW, I have done dozens (probably over 100) site condos here in Los Angeles. I have always done them on the Condo form and my client also requests that I use the condo form. However, I have been known to add a line at the bottom of the grid to address Lot Size as sometimes there can be a big difference in the back yard area which I believe affects value. I do PUDS on a 1004. Haven't had any problems so far.

Mike

 

[Rob Frazier]

The choice of form is based on ownership. If the property is part of a condominium and the land is not individually owned by the homeowner, then the interest in the land is not fee simple and you are appraising the value of the improvements along with the share of the common land, amenities, etc. then the 1073 IS the appropriate form. If the property is not part of a condominium but rather individually owned and has a share in the common elements outside of the homesite, then is it not a condominium and the 1004 is the appropriate form.

 

[Don Clark]

I assuming this was directed at my "inane comment". Site condominiums are used in Michigan to forgo the state subdivision guidelines and red tape. I would venture that 70% of the homes that I complete appraisals on in Metro Detroit that are located in tract developments built after 1990 are site condos. If the client requests that the appraisal be REPORTED using a 1073 than I complete the appraisal on a 1073. If the client does not make a specific reporting requirement once informed that the property is located within a site condominium I report the appraisal using the 1004(unless FHA).

Stating that a site condominium is not a "condo" is ignorant. I really don't understand why using a 1073 to report an appraisal for a site condominium is so problematic. If "subdivision" is used in the legal description than it is a subdivision of land approved at the state level. If condominium is used in the legal description the division of land was completed by a condominium division of land. Ergo a site condominium is a condominium. Inane as it maybe there is no arguing legal definitions of land division.

That is the way I handle it.

A Condo is a form of ownership, not an archetectural style. In my market we have about 20 different versions of archetectural style. One common style is a 2 unit condo. It is similar to a duplex but with each unit seperately owned. It does not have an HOA, and no condo fees. We also have large hotels where each room is a residential condominium owned by an investor. We have Manufactured Homes, an entire development of them where each MH is a condo unit, and the MH owns the site beneath it. We have old motels that are condos. Old converted office buildings that are condos. Boat slips that are condos. We also have very large PUD's, true PUD's with a mix of property types including condos, single family detached, single family attached, and commercial properties in the PUD. In that case there is a PUD fee and a Condo fee.

There is at least one large neighborhood of very large single family homes, 3,000 sfla or more, that owns the land they sit on, and are legal condos. There are also many high rise condos in the market.

A condo is a form of ownership.