Limitations and Conditions Not Affecting Value

Per, the following conditions or limitations to title have been determined by VA as not materially affecting the VA value estimate of residential property (whether or not enforceable by a reverter clause), provided there has been no breach of the conditions affording a right to an exercise of the reverter clause.

[38 CFR 36.4350]

When the limitation or condition is …

There is no material affect on the VA value estimate if …

Building or use Restriction

·   no violation exists, and

·   the proposed use by the veteran is not likely to result in a violation.

Violation of Building or Use Restrictions of Record

·   they have existed for more than one year,

·   are not the subject of pending or threatened litigation, and

·   do not provide for a reversion or termination of title, condemnation by municipal authorities, or a lien for liquidated damages which may be superior to the lien of the guaranteed or insured mortgage.

Easement

·   public utility/drainage easement along one or more of the property lines or easement for drainage or irrigation ditches, provided the exercise of the rights of such easement does not interfere with the use of any of the buildings or improvements located on the subject property

·   mutual easement for joint driveway located partly on the subject property and partly on adjoining property, provided the agreement is recorded in public records, or

·   easement for underground conduits which are in place and which do not extend under any buildings on the subject property.