A house's attached garage was built two feet over the side setback line decades ago and the county has never objected. The appraiser should:
Correct Answer
B) Report the apparent encroachment and consider its effect on marketability
Why this is correct: The appraiser must report the apparent encroachment (improvement crossing a property line) and consider its potential effect on marketability and value, as it creates a title defect and risk. Why the other choices are wrong: 'Treat the encroachment as legally extinguished by the passage of time' is wrong; adverse possession or prescription requires specific legal conditions not assumed here. 'Order the garage removed before completing the report' is wrong; the appraiser does not have enforcement authority. 'Value only the portion of the house inside the lines' is wrong; the entire property is appraised, with the encroachment considered as a defect. Exam tip: Disclose encroachments and analyze market reaction; don't assume they are cured.
Why This Is the Correct Answer
Why this is correct: The appraiser must report the apparent encroachment (improvement crossing a property line) and consider its potential effect on marketability and value, as it creates a title defect and risk. Why the other choices are wrong: 'Treat the encroachment as legally extinguished by the passage of time' is wrong; adverse possession or prescription requires specific legal conditions not assumed here. 'Order the garage removed before completing the report' is wrong; the appraiser does not have enforcement authority. 'Value only the portion of the house inside the lines' is wrong; the entire property is appraised, with the encroachment considered as a defect. Exam tip: Disclose encroachments and analyze market reaction; don't assume they are cured.
More Property Description Questions
A property is located in FEMA flood zone AE with a base flood elevation of 485 feet. The lowest floor is at 487 feet. What is the significance for the appraisal?
In a leasehold estate, the tenant's interest in the property is called:
A residential property is located in a subdivision governed by covenants, conditions, and restrictions (CC&Rs) recorded in 1985. One CC&R prohibits detached accessory structures over 12 feet in height. The property currently has a 14-foot-tall detached garage built in 2012. No enforcement action has been taken. How should the appraiser reflect this violation in the appraisal report?
Why is a street address alone insufficient as a legal description in an appraisal report?
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In the rectangular survey system, a section contains how many acres?
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When appraising a tenant's interest in a property under a long-term lease with below-market rent, the appraiser is valuing which property right?
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