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.