For a Fannie Mae assignment, the verified subject parcel is a 120 ft by 180 ft rectangle. A 30 ft wide utility-easement strip lies within it, but no parcel boundary is transferred. What total subject site area is reported, separately from analyzing the easement’s effect?
Correct Answer
C) 21600 SF, with the actual easement rights/use effects analyzed separately
The subject’s total rectangular site area is 120×180=21600 SF. Report the actual subject site size and separately investigate/analyze the easement’s scope, compatible uses, development effects and market response. Restrictions can affect utility without subtracting their strip from legal parcel area; neither all usable nor automatically unusable follows from an easement label.
Why This Is the Correct Answer
Option C is correct because the site area is 120 × 180 = 21,600 square feet, and an easement within the parcel does not reduce its legal area. Fannie Mae guidance requires reporting the actual size of the site, not a hypothetical portion. The easement's rights and effects on use are then analyzed separately.
Why the Other Options Are Wrong
Option A: 21600 SF, and the easement does not affect any use of the site
Option A, 21,600 SF with the claim that the easement does not affect any use of the site, is wrong because, although the area is right, an easement can affect utility and must be analyzed rather than assumed to have no effect.
Option B: 16200 SF, because each easement strip is wholly unusable land
Option B, 16,200 SF because each easement strip is wholly unusable, is wrong because it subtracts the strip (30 × 180 = 5,400 SF) from the 21,600 SF site, and an easement does not reduce the site area or make the strip unusable by default.
Option D: 16200 SF, because the buildable area outside the easement is the site size
Option D, 16,200 SF because the buildable area outside the easement is the site size, is wrong because it reports 21,600 − 5,400 = 16,200 SF as if buildable area were site area; the actual site is 120 × 180 = 21,600 SF.
Easements burden, not subtract
An easement places a burden on the land, but the land stays in the parcel and in the site area.
How to use: Use this when an easement tempts you to reduce the reported site area.
Exam Tip
Report actual site size first, then analyze any restriction's effect as a separate step.
Common Mistakes to Avoid
- -Subtracting easement area from the reported site size
- -Assuming an easement has no effect on use
- -Treating buildable area as the legal site area
Concept Deep Dive
Analysis
This question tests the difference between reported site size and the effect of an easement. The parcel is 120 by 180 feet, or 21,600 square feet, and the easement transfers no boundary. Report the full site size and analyze the easement's effect separately.
Background Knowledge
An easement is a right held by another party to use part of a property, but the owner retains title to that land. Appraisers report the full legal site size and then consider how the easement's scope and restrictions affect use and value.
Real-World Application
A residential lot has a utility easement along its rear line. The appraiser reports the full lot size and notes that the easement limits building in that strip while still allowing landscaping or parking.
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