Reliable local information confirms that a duplex was lawfully established and may continue after rezoning to single-family use. Which status and further appraisal investigation fit these facts?
Correct Answer
D) A legal nonconforming use — and whether it can be rebuilt if destroyed
The stipulated lawful continuing duplex is a legal nonconforming use. Investigate the actual reconstruction, expansion and discontinuance provisions and their relevance to marketability and value; continued use does not guarantee rebuilding after destruction. A variance or conditional-use approval is not established by these facts. Neither an automatic shutdown nor a fixed value discount follows solely from the label.
Why This Is the Correct Answer
Option D is correct because a use that was lawfully established and may continue after a zoning change is a legal nonconforming, or grandfathered, use. Fannie Mae guidance requires the appraisal to reflect any adverse effect of the nonconforming use on value and marketability, so the appraiser investigates reconstruction, expansion and discontinuance provisions, including whether it could be rebuilt if destroyed.
Why the Other Options Are Wrong
Option A: An illegal use that must be closed down within one year of rezoning
Option A is wrong because the facts state the duplex was lawfully established and may continue, so it is not an illegal use. Nothing in the facts supports a one-year closure requirement.
Option B: A variance, renewable on application
Option B is wrong because a variance is a specific grant of relief that the facts do not establish. The duplex continues because it was lawfully established before the rezoning, not because of a renewable variance.
Option C: A conditional use pending public hearing
Option C is wrong because a conditional use pending public hearing would be a use still awaiting approval. The facts describe an established use already allowed to continue, not a pending conditional use.
Grandfathered, but can it rebuild?
A grandfathered use may stay, but ask the follow-up question: could it be rebuilt if destroyed?
How to use: Use this whenever a property's use predates a zoning change that no longer allows it.
Exam Tip
For legal nonconforming uses, choose answers that pair the status with investigation of rebuild and continuation rules rather than assuming shutdown or a fixed discount.
Common Mistakes to Avoid
- -Calling a grandfathered use illegal
- -Confusing a legal nonconforming use with a variance or conditional use
- -Assuming a legal nonconforming use may be rebuilt after destruction without checking local rules
Concept Deep Dive
Analysis
This question tests identifying a legal nonconforming use and the follow-up investigation it requires. A lawfully established duplex allowed to continue after rezoning to single-family is a legal nonconforming use, and the appraiser should investigate whether it could be rebuilt if destroyed and how that affects value and marketability.
Background Knowledge
A legal nonconforming use is one that was lawful when established but does not conform to current zoning. Local rules may limit expansion, reconstruction after damage or resumption after discontinuance. Fannie Mae requires the appraiser to report the zoning compliance status and reflect any adverse effect of nonconformity on value and marketability.
Real-World Application
An appraiser values a duplex in an area rezoned to single-family after it was built. The appraiser confirms its legal nonconforming status with the zoning office, reviews whether it could be rebuilt as a duplex after a casualty loss, and comments on any effect on marketability.
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