BPO Reporting Guidelines Complex or Unacceptable Properties

Transcription

1 External Circular BPO Reporting Guidelines Complex or Unacceptable Properties Circular No.: Date: May 23, 2013 Distribution: BPO Providers Vendor Management Companies Effective: May 23, 2013 Purpose: This circular is intended to assist BPO Providers in identifying complex or unacceptable properties and to offer some practical guidance. LandSafe is committed to providing assistance, whenever possible, to ensure the BPO Providers submit quality BPO reports with credible Price Opinions. Definition and Examples of Complex Properties A complex residential property may be defined as atypical for its market area in terms of physical characteristics, locational influences, and non-conforming or illegal uses. Completing a BPO report on a complex property may require additional information and analysis to develop a credible price conclusion. The following provides guidance to completing a complex assignment; some examples of properties or conditions that may constitute a complex assignment include: Unique construction such as Berm or earth homes, geodesic domes, or very modern architecture Positive or negative locational influences such as waterfront properties, landfill, highway, airport Homes that front a private airport, have panoramic views, commercial or agricultural zoning Unusual physical characteristics such as over-improvements, atypical lot size, fire damage Environmental issues such as Chinese drywall, toxic soil conditions, hillside erosion or slippage Leasehold, Condotel, Co-op Landlocked parcel The BPO Provider must determine: Property Type and BPO Provider Competency 1. If the subject property type is different from what is indicated in the engagement letter, notify the LandSafe Scheduler before proceeding. For example: The BPO is ordered as a single family and the BPO Provider confirms the subject property is actually a duplex. Is the subject truly a one to four family property? Upon inspection, the BPO Provider discovers the subject property is operating as a Bed and Breakfast. The BPO is ordered as a SFR and the inspection reveals the subject property has extensive fire damage. Should the order be changed to a land only BPO? Page 1 of 5

2 2. Competency to complete the assignment? If you determine, at any point in the assignment you are not competent to complete a credible report or do not have access to necessary data sources, then LandSafe Fulfillment must be notified immediately by at BPOHelp@bankofamerica.com and/or immediate contact with the LandSafe Scheduler. Your competency for this assignment should include: Access to adequate and reliable subject property information, comparable market data, and market information to: o Access to sufficient primary market data such as Multiple Listing Service and reliable public data sources needed to complete the BPO report assignment. The BPO provider must contact the LandSafe Scheduler if there is insufficient subject property and/or comparable market data. Knowledge and experience with: o The local real estate market area o The subject property type Examples of Acceptable Complex Property Analysis EXAMPLE #1: The following is an acceptable Price Opinion Analysis/Conclusion of a Berm home but could be useful for other atypical property types such as Geodesic Domes, Log Houses, Ultra-Modern homes, etc. Page 2 of 5

3 EXAMPLE #2: The subject is a Place of Worship legally converted to a Single Family Residence. EXAMPLE #3: MLS reports the subject is a landlocked parcel. Page 3 of 5

4 Unacceptable Properties The following BPO orders were found to have property types that DO NOT qualify as either residential land or one to four family properties. The BPO Provider should IMMEDIATELY call LandSafe should the property type be found as anything other than residential land or a one to four family residential property. A: Expired listing on subject property reports SIX residential units: B. Tax records confirmed this is legally a mixed use property. (Two commercial units on the ground floor and two residential units on the upper levels.) Page 4 of 5

5 C. Active listing on subject property reports vacant acreage parcel zoned General Business: Contacting LandSafe Questions Should you need additional assistance or have questions, please contact the BPO Fulfillment team at Page 5 of 5