Appraisers' Free Forum

Not recorded yet. Talked to the agent, and know her to actually be honest and ethical. Here's the situation. Owner bought the house a week ago from the builder. He is an employee of the builder, but builder wanted out from every property in the S/D (PUD, active adult community), and closed on it 4/3/08 for 150k.
He's got a buyer already. Buyer is paying 190k, which is actually in line with the values in the community. This property is one of the last ones built in the community.
Now, the new owner and the agent both confirm that it is owned by him, and I have the emails from both stating as such.
It is not yet recorded in online data services, and the report is due tomorrow. Surprise that it is a rush.
Simple report. However, owner of public record and owner I have do not match.
I have seen this done before. I've placed a copy of the email from the reportedly new owner in the appraisal, explaining it fully, and based on the hypothetical condition that this is correct and true information.
How would you approach it?

One way would be to request a copy of the deed. Include it in the report.

Is Georgia a race-to-the-courthouse state? Does recorded title govern? If so, then get'em to record that deed. Here in TN, if the deed isn't recorded, it may as well not exist. The last *recorded* instrument is the one that governs.

We're not the title company nor are we the investigators for title research. Report what you know, include what you want, and send it on. If you "splain, splain, splain" then you're covered. That's how I've done them - show the owner of record that is available - show the borrower and answer that question on page 1 as requested - let the mortgage company handle it.

Basically, that is exactly what I did, Otis. I explained the situation, what the records showed, and what information I had, and sent it on.

benluby wrote: However, owner of public record and owner I have do not match.

Why not just report what is and let somebody else worry about it?

That's what I did. I decided I have enough of a headache. Let the title company earn their money.

Good. Not your problem. The deal sounds incestuous and thereby suspect. Who would buy something, try and refi it and not record the deed? Somebody is fooling your agent friend. But not the appraiser's problem. If some underwriter wants you to find out why, that is definitely outside of the SOW and should be worth $$$. I doubt anything in appraisal credentialing qualifies you to figure it out. Had an underwriter ask yesterday why a market is not declining.

benluby wrote:How would you approach it?

The other comments are fine... we are not the title company. However, if you have an agent telling you it's closed, why not ask her who the title company was, then call them up and ask for a copy of the deed (and closing statement if they'll do it).

I agree with Edd... doesn't sound arms length to me. Still, it is data.

Here's the rest of the story, that I got from discussing it with the agent and the current seller. New construction. Builder is working two S/D about 60 miles apart. Same plan in both. The other S/D (never worked in it), is more profitable to him. He sold this one and about five others identical to his employees. (Found records of four.) for the cost to build.
This guy got his bargain, and immediately sold it to a buyer who wanted to live in it, turning a tidy looking profit.
The builder's loans were fixing to mature, so he dumped, from what I was told.
Interesting situation, and one where one of those involved has turned it around rapidly. (He sold it within a week of closing, prior to his own closing he had a sales contract.)

benluby wrote:Here's the rest of the story, that I got from discussing it with the agent and the current seller. New construction. Builder is working two S/D about 60 miles apart. Same plan in both. The other S/D (never worked in it), is more profitable to him. He sold this one and about five others identical to his employees. (Found records of four.) for the cost to build.
This guy got his bargain, and immediately sold it to a buyer who wanted to live in it, turning a tidy looking profit.
The builder's loans were fixing to mature, so he dumped, from what I was told.
Interesting situation, and one where one of those involved has turned it around rapidly. (He sold it within a week of closing, prior to his own closing he had a sales contract.)

Interesting, and not that uncommon. Still, that was not a sale at mv, and definitely not arms length.

I remember a similar deal from back when times were good. I found a sale that didn't fit... it was much lower than other sales within the subdivision. I tried to figure out why and could not. So, I called the builder. He said, "Well, we had a bunch of starts up north and were running into a little cash flow problem. So, we put that one on sale just to move it fast." Also known as 'quick sale value.'