co-op
424) Co-Op Unit
10/19/08
Dear H2,
I have been asked to appraise a unit in a co-op. Can you tell me the difference between that and a condo? Do I use the condo form? This is for a private individual.
Loretta Laubach loretta@vanderwerffandassociates.com
Dear Loretta,
Both condominiums and cooperatives are forms of ownership. The USPAP does not cover what form to use. It requires that this be determined as part of the Scope of Work discussion with the client. Appraising co-ops is a specialized skill. Fannie Mae has a Form 2090 which is specifically designed for appraising individual cooperative ownership interests. If you are going to use a Fannie Mae form, this would be the one to use. You should also consider using a short form narrative report. The USPAP requires that you either have the necessary skills or that you get help from someone who does. Be sure you get the help you need on this assignment.
H2
I have been asked to appraise a unit in a co-op. Can you tell me the difference between that and a condo? Do I use the condo form? This is for a private individual.
Loretta Laubach loretta@vanderwerffandassociates.com
Dear Loretta,
Both condominiums and cooperatives are forms of ownership. The USPAP does not cover what form to use. It requires that this be determined as part of the Scope of Work discussion with the client. Appraising co-ops is a specialized skill. Fannie Mae has a Form 2090 which is specifically designed for appraising individual cooperative ownership interests. If you are going to use a Fannie Mae form, this would be the one to use. You should also consider using a short form narrative report. The USPAP requires that you either have the necessary skills or that you get help from someone who does. Be sure you get the help you need on this assignment.
H2