A recorded easement that does not appear on the property's survey should be:
Correct Answer
A) Identified from the title report and analyzed
Investigate the title information and actual recorded instrument to determine whether and how the easement burdens the subject. Analyze relevant rights and market effects and explain material discrepancies. Lack of a survey depiction does not establish nonexistence, and an appraiser cannot extinguish an easement by editing a description.
Why This Is the Correct Answer
Option A is correct because the appraiser should identify the recorded easement from the title report and recorded instrument, then analyze the rights involved and their market effect. The effect of an easement must be analyzed to reach a supported opinion of value. A missing survey depiction does not prove the easement does not exist, and material discrepancies should be explained.
Why the Other Options Are Wrong
Option B: Assumed not to exist on the property
Option B assumes the easement does not exist on the property. A recorded easement can burden the property even if the survey does not show it, so its absence from the survey does not establish nonexistence.
Option C: Reported if the easement is plainly visible on site
Option C reports the easement only if it is plainly visible on site. Many recorded easements, such as underground utility rights, are not visible, yet they still need to be identified and analyzed.
Option D: Removed from the legal description
Option D removes the easement from the legal description. An appraiser has no authority to extinguish or edit away a recorded easement; that requires a legal release or other proper action.
Recorded means real
If it is recorded, treat it as potentially real even when the survey is silent; read the instrument and analyze it.
How to use: Use this when title documents and survey disagree about an easement.
Exam Tip
Choose the answer that investigates and analyzes rather than assumes, ignores or deletes. Visibility on site is not the test for whether an easement exists.
Common Mistakes to Avoid
- -Relying only on the survey and ignoring the title report
- -Reporting only easements visible during the site visit
- -Assuming an appraiser can remove an easement from the property's description
Concept Deep Dive
Analysis
This question tests how an appraiser handles a recorded easement missing from the survey. A recorded instrument is evidence of a right that may burden the property, so the appraiser identifies it from title information and analyzes its effect.
Background Knowledge
Easements are commonly disclosed in title reports and recorded documents. Surveys may omit some easements, and discrepancies between title and survey are common issues to investigate. USPAP calls for identifying relevant easements and encumbrances, and their effect on value depends on location, scope and market response.
Real-World Application
A title report lists a recorded drainage easement that the borrower's survey omits. The appraiser reviews the recorded instrument, notes the discrepancy in the report and analyzes whether the easement affects site use or marketability.
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