Chapter
1 Appraisal and Property Requirements Unique Properties: Shared
Lots with Undivided Interest, Page 1-17b
Properties,
including condominiums, with legal descriptions that read "An
undivided 1/2 (or 1/3,) interest in and to Lot. . . . ." are
NOT eligible for mortgage insurance. If requested
to do an appraisal on a property with this kind of legal description,
the appraiser should REJECT the property as the
lot is not considered a Fee Simple entity. The lender should be
notified of the Reject as soon as it is determined.
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