Underwriting conditions

[metropaul]

Has anyone ever had a condition like this?:

1. Appraiser to state the mineral rights do not materially alter the contour of the property or impair its value or usefulness for its intended purposes.

 

[Sid Pachter]

As a former UW, I never asked for something like you noted. However is there anything you omitted in the thread that could prompt an UW to make the inquiry.

 

[The Warrior Monk]

That's a condition that is likely specific to your area.

 

[metropaul]

I have never had a condition like that here in my area. I have also consulted with (4) of my appraiser peers and they have also never heard of anything as such.

 

[Michael Tipton]

When all else fails, ask to speak with the UW to determine what motivated the condition.

 

[Kevin Little]

We do appraisals in coal country where severed coal rights are quite common...it has always floored me that some of the deeds stipulate that any company removing the coal in the future was not liable for any damage done to the surface of the land or the improvements...they could collapse your house into a sink-hole, smile and say "tough luck, kiddo!", and leave.

Somehow, I think the courts would ignore the deed, given those circumstances...

 

[stefan olafson]

Get a hold of the underwriter and find out if he/she has a window in her/his office? Can they see outside and discover reality?

Sure mineral rights come up from time to time. What minerals are they asking about?

Just wondering

 

[Greg Bell]

Has anyone ever had a condition like this?:

1. Appraiser to state the mineral rights do not materially alter the contour of the property or impair its value or usefulness for its intended purposes.

U W just out of college.Strips on the weekends to make ends meet..

 

[Restrain]

In Anderson County, Texas and other east Texas counties, homes and even small communities routinely get demolished as the strip mine advances. You may have some former burger-flipper that doesn't understand the difference between hard mineral rights and oil/gas rights, and is worried that an oil well may affect the surface contour.

However if the home is built over a salt dome and the removal of the oil causes the salt dome to collapse, I guess an oil well can be said to affect the surface contour as well.

 

[metropaul]

This is what the UW said in reply:

[FONT='Arial','sans-serif']We only need him/her to state that verbage on the appraisal. It is a FNMA requirement and it also is in our guidelines. [/FONT]