Unpermitted Main House

[Tim The Enchanter]

You didn't run? Oye.

Probably not worth faking your own death over, but sounds like giant pita.

 

[Terrel L. Shields]

Still sounds like the case can be made that the house is far older than the zoning and in my state, "discovery" is the responsibility of the assessor, not the homeowner. If they forgot to put you on the rolls, that is their problem.

 

[J Grant]

Even homes far older than zoning or permits are typically assessed and taxed and thus are recognized as legal structures. This property per the OP is not assessed as a dwelling nor taxed. While all of us would love to live without paying property taxes , at some point it could become an issue, and either entire home be subject to code inspections or back taxes if used as residence for X years paying no taxes etc. And it will be almost impossible to find another comp with same legal status.

I'd run it by lender, see if they want you to proceed. If they do, imo, Marion's post had good advice re tax and legal disclosure. Impact on marketability very hard to predict, I'd imagine some buyers would shy away yet these folks poured money into remodeling...without permits of course because they wanted to be under the radar and live tax free. Which means any other sale of the property might have to be an all cash deal to a similar minded buyer. (limited buyer pool though plenty of tax cheats around so who knows)

 

[Meandering]

The OP does not need sales of homes that are not on the tax rolls, as the assumption is part of the pre-printed Fannie crap, that the legalities of the subject do not impact it's ability to be sold.

All the OP needs to do is,

estimate the taxes that would apply to the property once the current owner straightens the permit and taxing issues with the municipalities.

Put in a bold statement about the taxing and permit issues the OP is aware of.

Disavow appraiser responsibilities for those issues as they are covered by the pre-printed language and are beyond the expertise, training, education and knowledge of the appraiser.

Appraise as if the issues did not exist.

Do not use an HC or EA, but rather refer readers back to limiting condition 1 of the pre-printed form.

Recommend the client hire a local real estate attorney who can answer any further questions regarding permits, costs, and taxing authority issues.



.

 

[J Grant]

"1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title."

Since appraiser can not assume title is good and marketable, this may be an unacceptable assignment on the URAR form.

Above is what the Fannie form actually says. The appraiser did become aware of a legal/title matter during research and would be misleading not to disclose it. What they found is a serious issue, not a minor one, so serious they could possibly lose silence if they do not disclose it. Of course a lender is concerned if a property is legal and can be sold and an issue this glaring can impact marketability including price /whether it could be financed.

First discuss with lender, and discuss making report subject to a title search. If they say do report as is and you want to proceed, disclose everything and say title search highly recommended.

 

[Meandering]

No J,

You are mixing two sentences together, when they are individually complete thoughts.

The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal.

Right, so the appraiser became aware of the information, determined the information is legal in nature and beyond the expertise of the appraiser, thusly the appraiser recommends the client retain a local RE lawyer.

The appraiser assumes that the title is good and marketable and will not render any opinions about the title.

Even though the appraiser has become aware of "matters of a legal nature that affect either the property being appraised or the title to it,"
the appraiser "assumes that the title is good and marketable"

.

 

[The Warrior Monk]

FWIW, there are various websites and apps that have historic aerial imagery, though what is available can vary widely depending on location. If this imagery is available in your area, you may be able to determine if the home was in existence prior to zoning, in which case it can be reasonably assumed that it is legal and preexisting (and possibly nonconforming, if applicable). If it can be determined through imagery that it was built after zoning, the situation is much more problematic from a valuation standpoint. In that case, it is necessary to bring the property into compliance will have to be determined, and will vary depending on municipality. It can vary from simply filing some paperwork to removing the residence.

 

[J Grant]

What did the buyer buy when they purchased the property as a foreclosure? Some deed exists, the property as a whole is taxed or shows on public records as what... a lot with sheds or a manufactured home ( that has been removed?) What was there when they bought it before they did the remodeling.

The current owner bought a of property...what was it...a lot with out buildings on it (and they turned an out building into a house?) Or did they buy a lot with a house on an unknown date, and the house was never assessed in public records/ taxed?

 

[Tim The Enchanter]

or a manufactured home ( that has been removed?)

Could it be a trouse? Did you look under for wheels or a frame?