For a Fannie Mae assignment explicitly using legacy traditional appraisal forms under B4-1.2-01, which statement correctly addresses condo units and the detached-project exception?
Correct Answer
D) Attached units use 1073; all-detached projects may use 1004
Under the cited legacy traditional-report policy, attached condo units use Form 1073. Units in projects consisting solely of detached dwellings may use Form 1004 with the specified project, HOA fee and maintenance information. UAD 3.6 assignments follow their applicable supplement and report conventions.
Why This Is the Correct Answer
Option D is correct because, under the cited legacy policy, attached condo units are appraised on Form 1073. Units in condo projects consisting solely of detached dwellings may be documented on Form 1004 if the appraiser includes an adequate project description, HOA fee information and the quality of project maintenance. This captures both the rule and its exception.
Why the Other Options Are Wrong
Option A: Each condo unit must use Form 1073, with no detached exception
Option A requires Form 1073 for each condo unit with no detached exception. The guide expressly allows units in all-detached condo projects to be documented on Form 1004.
Option B: Each condo unit must use Form 1004, attached or detached
Option B requires Form 1004 for each condo unit, attached or detached. Form 1073 is the form for condo units, and Form 1004 is allowed only for units in projects consisting solely of detached dwellings.
Option C: Form 1073 is reserved for appraisals of co-op units
Option C says Form 1073 is reserved for co-op units. The cited guide describes Form 1073 as the report for one-unit properties in condo projects, not a co-op-only form.
Attached 1073, Detached May 1004
Attached condo units go on 1073; units in all-detached condo projects may go on 1004 with project details.
How to use: Use this pairing on legacy form-selection questions for condo units.
Exam Tip
Watch for words like may and solely detached; the exception is permissive and limited to projects of only detached dwellings.
Common Mistakes to Avoid
- -Using Form 1004 for attached condo units
- -Forgetting the project information needed for a detached exception
- -Thinking Form 1073 is for co-ops only
Concept Deep Dive
Analysis
This question tests which legacy Fannie Mae form applies to condo units and the exception for detached-only projects. Form 1073 is used for traditional appraisals of units in condo projects. Units in projects consisting solely of detached dwellings may instead be documented on Form 1004 with the required project information.
Background Knowledge
Fannie Mae's legacy appraisal forms are tied to property types, with Form 1004 for one-unit residential properties and Form 1073 for individual condo units. A detached condo unit physically resembles a single-family house, which is why Form 1004 is permitted with added project information. Assignments under newer reporting conventions follow their applicable requirements.
Real-World Application
An appraiser receives a legacy-form order for a detached cottage in a condo project made up entirely of detached homes. The appraiser uses Form 1004 and adds a description of the project, the HOA fees and the level of project maintenance.
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Project A: each owner holds title to an individual unit plus an undivided interest in the common elements. Project B: each owner holds fee title to a lot and its dwelling, and a mandatory owners' association owns and maintains the common areas, funded by assessments. How does Fannie Mae classify the two projects?
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In a covered Fannie Mae assignment, the primary dwelling has 2,100 square feet expressly meeting the applicable finished above-grade definition, plus a 400-square-foot unfinished attic and an 800-square-foot unfinished below-grade level. What is the stated finished above-grade area?