Two deeds?

[SBunker]

Working on a property in a lake community. Owners bought a boat slip separately from the home but say that the deed to the slip is "appended" to the home/property. Is this normal? True? How would I explain it to my underwriter? Thanks!

 

[Bobby Bucks]

Those can be tricky. I’m working as a buyer’s agent on a sale currently that has a boat slip reference, but not a separate deed. The boat slip reference was a scribe error from 40 years ago. I had an appraisal a couple years ago for a refi owned by a realtor agent that had 2 separate deeds and she flat out lied beforehand insisting the boat slip was on the same deed as her house. They were 2 separate deeds 3 years apart. Some of it will vary state to state. Borrowers will lie, realtors will lie, lawyers will lie. The answer is in the deed.

 

[Joe Flacco]

It's the same thing as when someone buys a condo and then buys a parking space in the building later on. Two different deeds but can be sold together going forward.

 

[alebrewer]

If the property is on a Corps (or other publicly held) lake, the slips are usually on long term leases.

 

[Sadie]

Working on a property in a lake community. Owners bought a boat slip separately from the home but say that the deed to the slip is "appended" to the home/property. Is this normal? True? How would I explain it to my underwriter? Thanks!

Just like you did here. Two deeds that are included in the same sales agreement. There are several versions of what 'appended" means in RE.

 

[Surf Cat]

Is this normal? True? How would I explain it to my underwriter? Thanks!

Yes, it's normal. Utilize comparables that sold with boat slips. Explain within the report that boat slips within the community can be sold separately and that your opinion of value is that of the real property and the boat slip combined.

 

[J Grant]

These can be tricky - even though a boat slip might be added to the deed ( ask the owner for the deed), it still might be possible to sell the slip separately. Imo you might want, ask your client if they will accept valuing a deed and the house as one economic unit if the slip can be divided off and sold. How much did they pay for it?
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If it is an HOA, it may have restrictions on selling a dock or slip only to other residents.

 

[Terrel L. Shields]

How would I explain it to my underwriter?

If the dock is anchored in the ground in Georgia, it may be real property. But a floating boat dock is almost always going to be treated as personal property and is therefore, not part of the real property of the land and house. Check with state. If on a Corp of Engineers lake, their office can likely tell you as they normally require docks to be licensed by them.