Subject To: Septic & Termite Certs ?

[ZZGAMAZZ]

HANDBOOK 4000.1 indicates that the mortagegeeee (funny word) needs to obtain proof that a septic system is functional and the property is termite-free. So . . . does each appraisal need to be conditioned "subject to" septic and termite certs regardless of whether evidence of leaks/investion is apparent?

Caveat: Not asking whether others feel that I'm [in]competent. From a regulatory perspective, the appraiser is doing what is necessary to become competent, before there becomes a client who deserves a heads-up.

 

[Terrel L. Shields]

mortagegeeee

spelling? The mortgagee is the lender. The lender is responsible to determine that. It would be an ordinary assumption that the property should have a termite inspection in our area, and we would also have some language concerning any septic issues...i.e.- I did not see surfacing, or obvious odors (unless there is). You must report it otherwise. You cannot report things you do not observe. You certify and limit yourself within the report.

 

[RSW]

It is not necessary for the appraisal to be made subject to those inspections unless there are signs of problems. We used to have to make the appraisal subject to a termite inspection. We also had to make it subject to inspection of the septic tank if the property was vacant. That was back when we used the VC sheets .

 

[Terrel L. Shields]

That was back when we used the VC sheets .

VC sheets seemed to be useful...unlike a lot of other things since

 

[glenn walker]

HANDBOOK 4000.1 indicates that the mortagegeeee (funny word) needs to obtain proof that a septic system is functional and the property is termite-free. So . . . does each appraisal need to be conditioned "subject to" septic and termite certs regardless of whether evidence of leaks/investion is apparent?

Caveat: Not asking whether others feel that I'm [in]competent. From a regulatory perspective, the appraiser is doing what is necessary to become competent, before there becomes a client who deserves a heads-up.

No on FHA if you check the infestation box , then you state what evidence you saw of termite or dryrot damage and recommend the lender to obtain a inspection and clearance. ( Also take a few photos ) if you see damaged wood. ON SEPTIC SYSTEMS you only call for a septic certification, if you see evidence of a improperly working system, often if a system is not leaching you will see a large circle or area of tall grass and soil around the tanks area is mushy or sewer water is puddeling THEN CALL FOR INSPECTION AND CERTIFICATION, these two issues are no different than any other repair if you see it then call for it otherwise its not called out.

 

[glenn walker]

It is not necessary for the appraisal to be made subject to those inspections unless there are signs of problems. We used to have to make the appraisal subject to a termite inspection. We also had to make it subject to inspection of the septic tank if the property was vacant. That was back when we used the VC sheets .

AS FAR AS THE old VC sheets most software providers still have them in there forms archives and it may be helpful for newer FHA appraiser to print off a copy and use as a guideline on what to look for and when to report it.

 

[J Grant]

HANDBOOK 4000.1 indicates that the mortagegeeee (funny word) needs to obtain proof that a septic system is functional and the property is termite-free. So . . . does each appraisal need to be conditioned "subject to" septic and termite certs regardless of whether evidence of leaks/investion is apparent?

Caveat: Not asking whether others feel that I'm [in]competent. From a regulatory perspective, the appraiser is doing what is necessary to become competent, before there becomes a client who deserves a heads-up.

I wish there were separate handbooks just for the appraisal - keep in mind these handbooks are often largely geared toward the lender and then have an appraisal/appraiser section. While it is good backstory to understand what the lender's obligations are, do not intermix that with appraiser's obligations under a program.

We see posts from appraisers quoting a section from a handbook that is the lender /mortgagee guidelines, not the appraisal guidelines so you are not alone!

 

[Econobot]

HANDBOOK 4000.1 indicates that the mortagegeeee (funny word) needs to obtain proof that a septic system is functional and the property is termite-free. So . . . does each appraisal need to be conditioned "subject to" septic and termite certs regardless of whether evidence of leaks/investion is apparent?

Caveat: Not asking whether others feel that I'm [in]competent. From a regulatory perspective, the appraiser is doing what is necessary to become competent, before there becomes a client who deserves a heads-up.

I have boiler plate verbiage regarding septic systems and I always state in the narrative that subject and comparables all have septic and explain why. I end this paragraph with extraordinary assumption that its functioning properly. I did show up to a property that I felt had a clogged leach field or failed system, standing water was evident and the water was flowing....just so happens that the shower was on, bingo. Pretty obvious at that point, I conditioned the report and explained why with photos. The lender sent me a receipt with zero charges to the customer stating that so and so inspected septic system and everything was good. I called the lender and said when is the last time you received a receipt with zero charged, hinting to them that this is bogus. They agreed that it seemed phony, I simply said I'm going to attach the receipt to the appraisal and make an extraordinary assumption. It's pretty sad when a homeowner refuses to acknowledge and fix human waste flooding their yard but it's not my problem. I also did everything I could to alert and help fix but you can't force it. Lesson learned, make the extraordinary assumption because obviously nobody cares...

 

[CANative]

I end this paragraph with extraordinary assumption that its functioning properly.

Do you condition the appraisal on inspection/verification of the EA?

 

[J Grant]

Appraisers are not allowed to add an EA to a URAR appraisal ( read the certification page, no changes or additions to the printed on the form assumptions are permitted )

That aside, why would an appraiser take on the liability of making an EA that systems are functioning properly when they do not know that is true? All the appraiser knows is the date/time they are at the subject they did not observe a problem. Unless an appraiser notes an observed defect or repair issue in their appraisal, the assumption is baked in that report is systems are operational.