A rectangular lot measures 120 feet by 180 feet. The site contains a 30-foot-wide public utility easement running the full 180-foot depth along one side. Under USPAP and common appraisal practice, what is the legally permissible site area used for valuation analysis?
Correct Answer
C) 21,600 square feet, but the easement must be disclosed as a limiting condition affecting highest and best use.
USPAP Standards Rule 2-2(a)(v) requires disclosure of all relevant property characteristics, including encumbrances such as easements. While the *legal lot area* remains 21,600 sf (120 × 180), the easement is a limiting condition that may affect highest and best use and marketability — it is not subtracted from the reported site area unless local zoning or deed restrictions prohibit *any* use within it. Appraisal practice (per URAR and Fannie Mae Selling Guide B4-1.1-02) mandates reporting total legal lot area, with easements disclosed separately. Option C is correct: the full area is reported, but the easement must be disclosed as a limiting condition. Options B and D incorrectly reduce site area; Option A fails to address required disclosure.
Why This Is the Correct Answer
USPAP Standards Rule 2-2(a)(v) requires disclosure of all relevant property characteristics, including encumbrances such as easements. While the *legal lot area* remains 21,600 sf (120 × 180), the easement is a limiting condition that may affect highest and best use and marketability — it is not subtracted from the reported site area unless local zoning or deed restrictions prohibit *any* use within it. Appraisal practice (per URAR and Fannie Mae Selling Guide B4-1.1-02) mandates reporting total legal lot area, with easements disclosed separately. Option C is correct: the full area is reported, but the easement must be disclosed as a limiting condition. Options B and D incorrectly reduce site area; Option A fails to address required disclosure.
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