So Who Is Repsonsible To Verify Permits?

[moh malekpour]

I assume the permit pullers are doing so on every appraisal and every comp for consistancy

Mike,
you got to do your best to cover yourself. Trivila items like fence or driveway are not a big deal although they could cause prboblem but you just do your best. Why do you need to check the permit for your comps when you using recorded data. That recorded documents are indication of the permit. Plus, if you use a comp with a non-permitted addition and someone was killed in that non-permitted addition, you are not going to be sued for that. You just have used a false data for your comp but if you use a non permitted addition of your subject as a living area and someone slept there and the ceiling came down and killed that person, you might get sued because you counted that addition as living area. That is my main concerns for checking the permit most of the time.

 

[DTB]

Moh,

I've owned dozens of houses and it never once occurred to me to refer to the appraisal regarding where I should or shouldn't sleep.

Trivial?

A 100' concrete driveway and 2+ car garage is upwards of 30K around here.

I really don't see the impending lawsuit from an appraiser's description of an addition.

 

[Artemis Fowl]

Originally posted by Lee Ann+Jun 1 2005, 03:30 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Lee Ann @ Jun 1 2005, 03:30 PM)</td></tr><tr><td id='QUOTE'>John:

Finding that a property does not match the tax record, or zoning, in MY opinion should result in further basic inquiry (to whatever extent will 'do no harm' to the homeowner), and disclosure to your client of what you did discover, or were unable to discover. Then the ball's in their court.
[/b]

Agreed.


<!--QuoteBegin-Lee Ann@Jun 1 2005, 03:30 PM
John:

The issue seldom arises unless a property is damaged and needs repair, or a susequent owner decides to get a permit for other reasons... Having seen rebuild/repair permits denied hundreds of times, I am a true believer that it CAN happen. And that the homeowners get real REAL mad about it... I don't like getting hit by shotgun "sue everyone" blasts!

I want CYA language in my reports, as well as applying reasonable due dilligence in discovery to prevent my entrapment in a problem not of my making.
[/quote]

The intended use of my appraisal is not for insurance estimating purposes. That'll be $30,000 for copyright violation please! :usa:

 

[moh malekpour]

I really don't see the impending lawsuit from an appraiser's description of an addition.

http://news.yahoo.com/s/ap/20050601/ap_on_...beach_landslide
Mike, this is just happened few hours ago within few miles from me. No rain, no earthquake, no nothing, just landslide and multi-mil dollars home are gone. Thanks god I didn't appraise them. Paul Warner who posts here lives in that city. He may have more to say about this tragedy. You never know about the accident til it happens and you always think it happens to others but not to you or to your area but it just needs to happen to you once and you are going to be in trouble.

 

[Randy Beigh]

Thanks god I didn't appraise them.

Moh,

I read the article, but I didn't see anything about appraisers. Why are you glad, you didn't appraise any of these?

Natural and not so natural disasters happen somewhere in this country everyday of the week. All these disasters are not appraisal lawsuits waiting to happen. Suspect most folks have bigger fish to fry.

 

[moh malekpour]

Randy,
Landslide is buiding defect. when they try to build an structure be it a house or addition, they get professionals to check the soil and if there is no security, they wont issue a permit but if they issue a permit and building didn't stand, they are responsible to let the owner build in an unsecure land. If I had appraised a house that had addition but no permit and got destroyed like this what would be my position. This is not a natural disastor. This was possibly prventable. So, If I was an appraiser and they were going thru law suite, I should be worried becaue they are going to sue everyone.

 

[TEL2002]

If I had appraised a house that had addition but no permit and got destroyed like this what would be my position. This is not a natural disastor. This was possibly prventable. So, If I was an appraiser and they were going thru law suite, I should be worried becaue they are going to sue everyone.

If the basement was finished - without a permit - would your liability be any greater? I don't think so. If they added a 14x20 deck on the back - without a permit - would your liability be any greater?

Can we be sued. You betcha. You can be sued because you brought the value in 'under' the purchase price and 'killed' the deal.

Would you be sued if you said there was no permit (your search did not produce a proper permit), the loan was killed as a result of your statement...but low and behold there really was a permit buried in some dusty corner of the county office. Maybe.

I think Hal's statement was quite good.

During the inspection and verifications the appraiser noted that additions have been made to the subject at some time in the past.  The owner stated that permits had been obtained for all work.  The appraiser makes the extraordinary assumption that its is, in fact, true.  If this proves to be incorrect the appraiser may revise the final opinion of value.  If this is a matter of concern to the lender then it is recommended that the presence of permits  be verified

We must remember the "intended user" and "intended use" of our reports. This might make a difference in this entire discussion.

 

[Otis Key]

FWIW, the more you do, the more your liability! I said it before and repeat, "I'm not a title company and I'm not qualified as a roofer, electrican, plumber, structrual engineer, contractor, etc., etc., etc. They want permits, contact the title company! It is assumed, EA, that permits were drawn!

 

[Robert Anderson]

Originally posted by Randy Beigh@Jun 1 2005, 04:22 PM
I read the article, but I didn't see anything about appraisers. Why are you glad, you didn't appraise any of these?...

This occurred in an area of known land slides and unstable soil. An appraiser who failed to note and consider this in an appraisal could certainly be the target of a lawsuit. This type of loss is not covered by normal insurance, and the owners are going to be looking for someone to sue. That may not be right, but it's probably going to happen. Moh's relief is well founded...IMO.

Bob Anderson

 

[Otis Key]

Originally posted by moh malekpour@Jun 1 2005, 04:36 PM
Randy,
Landslide is buiding defect.

What's a Landslide? :rofl: