A room addition built without a permit but finished to residential standards should be:
Correct Answer
C) Described, measured, and its permit status disclosed
Why this is correct: USPAP's ethics rule requires disclosure of any material information affecting value. The addition is physically part of the property and contributes to value, but its non-permitted status is a material fact affecting marketability and must be disclosed. Why the other choices are wrong: 'Included in GLA with no mention at all of the permit status' omits required disclosure. 'Excluded entirely from the GLA calculation' ignores the space's contributory value. 'Valued at the cost the owner reports spending' uses an unreliable basis instead of market evidence. Exam tip: When in doubt about a physical feature's inclusion, measure it, describe it, and disclose any issues.
Why This Is the Correct Answer
Why this is correct: USPAP's ethics rule requires disclosure of any material information affecting value. The addition is physically part of the property and contributes to value, but its non-permitted status is a material fact affecting marketability and must be disclosed. Why the other choices are wrong: 'Included in GLA with no mention at all of the permit status' omits required disclosure. 'Excluded entirely from the GLA calculation' ignores the space's contributory value. 'Valued at the cost the owner reports spending' uses an unreliable basis instead of market evidence. Exam tip: When in doubt about a physical feature's inclusion, measure it, describe it, and disclose any issues.
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A property is zoned for commercial use but is currently being used as a single-family residence. This use was established before the current zoning. This situation is called:
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A property is described as beginning at the intersection of Main Street and Oak Avenue, then proceeding north 150 feet, then east 100 feet, then south 150 feet, then west 100 feet to the point of beginning. This is an example of which type of legal description?