Two different legal dscrpts under 1 address

[JTRock]

I have two lots adjacent to each other that are under 1 address. The one legal is 83k (with a house) and the other 83k-1 (storage building). Both are under the address 14102 and same owner name. I assume this is under one address for tax purposes. Is it legal to appraise a property with two separate legal descriptions? Should I ask the lender what legal description they want me to appraise? I don't see how I can appraise two different legals under one report...

 

[PropertyEconomics]

You can absolutely appraise two separate legal descriptions in one appraisal. Simply include them both within your legal description and consider the property as a whole.
In NM this happens all the time, and Im sure in other locations where older subdivisions had 25 foot side lots with several lots comprising a parcel.
Whether your lender will accept two legal descriptions is another matter, however with regard to legality, it is absolutely legal to do so as long as you disclose both legals and explain how the properties interact with one another and the total is your basis for valuation. You do not have to arrive at separate values for each legal, but merely one for the two together. No subject to their being joined is necessary from a legal standpoint.

I wish you well on this assignment.

 

[Nick Gilbert]

I had a similar assignment. The house was on one lot and the garage was on a small adjacent lot. I included both parcels and legal descriptions in the report and explained it thoroughly. You want to convey that the value is inclusive of both lots and that the sale of the accessory lot (if it can be legally sold separtely) will negate the value estimate.

 

[Ken B]

Had a property which consisted of two contiguous lots in a residential subdivision. House was on one lot, a detached garage was on the other. Separate legal descriptions for each; appraised the property as it was with both parcels. Subsequent to delivery of the appraisal, the lender calls and informs me that there is only one legal description as the two lots had been assembled. I advise that the county reported two separate parcels. Lender produces an unrecorded document which assembled the two properties into a single legal unit. Fine, new appraisal with property reported as a single legal unit. Couple of weeks later, I get a call from the lender...they want me to appraise the property as two legal units. Sorry, no can do, I have a document stating that they are one unit with an clause required by the HOA that the assembled parcel could never be subdivided. Lender states "But it was never recorded." And I state "True, but its still a legal document although I would not have been aware of it had you not provided it to me." Lender calls back the next day..."It's no problem with the UWer if you appraise the property as two legal units". No can do, sorry. Lender calls back next day..."The closing attorney says its no problem if you appraise the property as two legal units." Really? Huh. Please have the attorney provide a letter to me stating that I can do that. No letter, no more phone calls, no more assignments. Not a horrible loss. But since the lender was located in an office right next door to mine, I had to deal with "Dagger eyes" for a while.

Property consisting of multiple legal entities is valued by a single appraisal everyday. Look out for surplus/excess land and subdivision potential.

 

[JTRock]

Thanks for the good information.

 

[Caterina Platt]

Kenneth,

I think the key to your issue is that the assembledge of the two parcels was never recorded. Until the county has recorded the transaction, legally (as per my understanding and experience) the re-platting has not taken place.

 

[Ken B]

This was more than a few years ago, so I don't remember all the details. I have no idea why the document was never recorded. I'm not an attorney, but recording a document merely provides public notice. I don't believe it is necessary to be valid, although I would have thought the HOA would have required recording the document.

The property is located in a somewhat rural area and lots are served by private septic systems. Some lots did/do not perk and it was not unusual for a lot owner to purchase an adjacent lot which did not perk at a low price and assemble it with the sister lot.

Since the HOA signed off on the document and prohibited the future subdivision of the assembled parcels (after assemblage, the owner only paid HOA fees on one lot instead of two in a gated subdivision with fairly substantial HOA fees), if the owner ever tried to market the two parcels separately, a lawsuit would be very likely. Regardless, if an attorney had expressed an opinion that the property had existed as two parcels rather than one, I would have likely acted on that opinion. No letter was issued, so I didn't "play ball." In all likelihood, the lender got another appraiser (and paid another fee) to appraise the property as two lots and did not provide the new appraiser with a copy of the document assembling the parcels.

 

[RSW]

I would report both legals is they are recorded in the same deed. Or if the lender wanted them combined into one appraisal.

 

[Walter Kirk]

A postal address is not a legal address. If the property address covers more than one legal parcel and the client has not given me an instruction to the contrary I would note all legal descriptions and value the whole