An additional concern not already noted; lets assume its done and the SW most 5 acre corner was described (where the house is). The other 57 acres are mainly east and north of the described parcel. As is the main highway access and driveway. Is the bank ONLY encumbering the lower 5 acres? Doubtful. In which case no easements need be created. But it raises another issue. They have said they are lending 80% LTV and encumbered everything. But they only loaned on the 80% value of 8% of the total property. Isn’t THAT consumer fraud? Does the investor of the bundled security over in France or Germany know abut this improperly described parcel where the legal description in the appraisal does not match the legal description of the property encumbered?

What is MY liability? I described only five acres and wrote an appraisal saying that is what THAT segment is worth. Now the seller comes back and says the bank encumbered everything, including the 57 acres outside of the ‘site’ described in my report! The owner thinks I should have to pay of the loan or whatever it takes to clear the remaining 57 acres.

I don’t see how this can be legal for a GSE (except as a hypothetical exercise); OR for an appraiser to prepare for a GSE. We cannot knowing prepare a misleading appraisal report.

I think we have focused on a dirty little secret of the lending industry where the rules and circumstances have been parsed beyond all reason to turn ‘hypotheticals’ into something they were never intended for, nor are they legally suitable for (except maybe for non GSE, private portfolio lenders).