401: The Subject Property

The first section of our appraisal report forms is used to identify and describe the location of the subject property; to provide information about property taxes and special assessments; to indicate the occupancy status of the property; to describe the property rights to be appraised; to summarize financing data and sales concessions; and to identify the borrower, the current owner, and the client.

The appraiser must identify the subject property by its complete property address and legal description; a post office box number is not acceptable.  The appraiser should indicate the nearest intersection if a house number is not available.  When the legal description is lengthy, the appraiser may attach the full description as an addendum to the appraisal report, or may refer simply to its location in the public records.

The appraiser must identify the property rights to be appraised as "fee simple" or "leasehold." In addition, the appraiser must indicate whether the subject property is located in a PUD or condominium project, if the appraisal for a PUD or condominium unit is documented on the Uniform Residential Appraisal Report (Form 1004) or the appraisal for a PUD unit is documented on the Small Residential Income Property Appraisal Report (Form 1025).

The appraiser must state the total dollar amount of the loan charges and/or concessions that will be paid by the seller (or any other party who has a financial interest in the sale or financing of the subject property) and provide a brief description of the items on the appraisal report form.  If the appraiser knows that the appraisal will be used for a refinance transaction, he or she should indicate that on the form.