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Measuring Square Footage 1
MEASURING SQUARE FOOTAGE
Based on the North Carolina Real Estate Commission Guidelines
PART ONE/DAY ONE:
Three and hours classroom instruction and perorm a practice measuring
exercise.
PART TWO/DAY TWO:
Three and hours practical experience.
Sharon Montague, Education & Training Director & Bill Miller, a highly experienced
real estate agent in our south oce, will take the students to a vacant house. Thestudents will be broken up into groups to measure the house with our guidance
Each group will need a clipboard with either a legal pad or graph paper and a 100
oot tape with decimals. We measure the outside o the house rst and then go
inside to see i any inside measurements are required. We point out specic areaso concern to the agents.
We then return to the classroom and compute the measurements to determine the
square ootage o the home we just measured.
PART THREE/DAY THREE
Three and hours
Reconciling Data to Determine Price
Instructor: Bill Miller. This class walks the agents through the step by step processo compiling all o the data needed to make a decision as to how to determine an
estimate o value o a property.
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4 Measuring Square Footage
Comments on Reporting o Square Footage by Agents
Real estate agents are NOT required by the Real Estate License Law or RealEstate Commission rules to advertise the square ootage o listed properties or to
provide an up-ront disclosure o square ootage to prospective buyers or tenants
It is, thereore, permissible or an agent, a rm or a listing service to elect not to use
square ootage in marketing listed properties. Listing services in some markets
around the country make it a practice to not indicate square ootage in the data
shown or a listed property. Instead, they allow inormation on the number and typeo rooms to serve as the description o the size o the dwelling.
Thephrasereportingsquarefootagemeansany communication o a propertys
square ootage in any manner, including, but not limited to: By inclusion in anyadvertising o any type; by inclusion in property data provided to a listing service(which will be subsequently reported to prospective buyers); by inclusion in property
inormation sheets; or by oral communication.
INTRODUCTION
It is oten said that the three most important actors in making a homebuying
decision are location, location, and location. Other than location, the single
most important actor is probably the size or square ootage o the home. Not
onlyisitanindicatorofwhetheraparticularhomewillmeetahomebuyersspaceneeds, but it also aords a convenient (though not always accurate) method or
the buyer to estimate the value o the home and compare it with other properties.
AlthoughrealestateagentsarenotrequiredbytheRealEstateLicenseLawor
Real Estate Commission rules to report the square ootage o properties oered orsale (or rent), when they do report square ootage, it is essential that the inormation
they give prospective purchasers be accurate. At a minimum, information
concerning square ootage should include the amount o living area in the dwelling.
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Measuring Square Footage 5
Comments on Use o the Commissions Guidelines
When square ootage is being reported, an agent is NOT absolutely required to
use either the Commissions Guidelines or the ANSI guidelines. An agent may useany method he/she desires to calculate the square ootage so long as the squareootage is calculated and reported correctly. NOTE, HOWEVER, the ollowing
comments.
Thequestionofwhatguidelineswereusedbyanagentislikelytoariseonlywhen
there is a question raised about the accuracy o reported square ootage. Whenconsidering a complaint against an agent to demonstrate rom his/her persona
transaction records the method used to determine the square ootage. The agen
should be able to demonstrate that he/she used either the Commissions Guidelinesor other comparable guidelines.
Anagentwhomakesareasonableandconscientiousattempttopersonallymeasure
adwellingandcalculateitssquarefootageinaccordancewiththeCommissions
Guidelines, but who makes an honest mistake in the process,
Purpose and Use o Guidelines
The ollowing guidelines and accompanying illustrations are designed to assist
real estate brokers in measuring, calculating and reporting (both orally and in
writing) the living area contained in detached and attached single-amily residentialbuildings. When reporting square ootage, real estate agents should careully ollow
these Guidelines or any other standards that are comparable to them, including
thoseapprovedbytheAmericanNationalStandardsInstitute,Inc.(ANSI)which
are recognized by the North Carolina Real Estate Commission as comparable
standards.*Agentsshouldbepreparedtoidentify,whenrequested,thestandardsused.
* The ollowing materials were consulted in the development o these Guidelines:
TheAmericanNationalStandardforSingle-FamilyResidentialBuilidngs:Square
Footage-MethodforCalculatingapprovedbytheAmericanNationalStandardsInstitute, Inc.; House Measuring & Square Footage published by the Carolina
MultipleListingsServices,Inc.:andmaterialscompiledbyBartT.Bryson,MAI,
SRA,andMaryL.DAngelo.
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6MeasuringSquareFootage
will clearly are better with the Commission than an agent who makes a similar
mistakebutcannotdemonstrateuseoftheCommissionsGuidelines(orcomparable
guidelines) when determining the square ootage, or worse, who simply relies on
inormation obtained rom an unreliable source and makes no eort to personallyveriy the square ootage.
Factors the Commission Will Consider. When considering whether or not an agentacted reasonably to assure the accuracy o his/her representation as to square
ootage, the Commission will consider such actors as:
Was the agent the listing agent or an agent working with the buyer who was
showingsomeoneelseslisting?
Didtheagenthavefullaccesstotheproperty?
Howcomplexisthedesignofthedwelling?(Or,howdifcultisittomeasureandaccuratelycalculatethesquarefootageofthedwelling?)
Do these Guidelines provide guidance sucient or a reasonably knowledgeableand prudent agent to accurately measure and calculate the square ootage o the
particulardwelling?
Whatwasthesizeandpercentageoftheerrorinreportedsquarefootage? How reasonable were the judgments made by the agent when determining the
squarefootage?
Applications o Guidelines to RENTAL Transactions
TheGuidelinesgenerallymakereferencetotheirapplicationtosalestransactionshowever, the Guidelines are considered to be equally applicable to rental
transactions.
Licenseesengagedinthemanagementofapartmentsareespeciallycautionedtomake sure the advertised square ootage or units they manage is correct. It is airly
common or the owners or developers o apartment complexes to provide property
management personnel with property inormation that includes in the reported
square ootage or units areas such as outside storage rooms or balconies that are
partoftheareaunderatenantsexclusivecontrolbutclearlyarenotconsideredpart o living area under these Guidelines.
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Measuring Square Footage 7
Comments on Listing Agents Basic Duty and Responsibility or Accuracyo Reported Square Footage
In any real estate transaction, the listing agent has the primary responsibility or
assuring that square ootage inormation he/she reports is accurate. The listing
agent is the real estate licensee in the best position to ascertain the correct squareootage o a listed dwelling, as well as other inormation on the characteristics and
condition o the property. Note also that the listing rm shares ully the responsibility
o the individual listing agent in this regard.
Duty to personally measure and calculate square ootage.Alistingagentwhoreports
the square ootage o a dwelling without personally measuring and calculating the
square ootage greatly increases his/her potential exposure to Commission disciplinary
action (and probably also to civil liability) in the event the reported square ootage isincorrect to any signicant degree. The more unreliable the source o square ootage
inormation adopted by the agent, the greater the potential exposure o the agent.
Responsibility or the errors o others. Square ootage inormation taken rom tax records
is likely to be highly unreliable, and square ootage inormation obtained rom the selleror rom a previous listing may also be unreliable. The square ootage reported by a State-
licensed or State-certied appraiser in an appraisal report (assuming there have been no
additions to the dwelling) is likely to be considerably more reliable than the above-mentioned
sources,butstillmightbeinerrorornotderivedinaccordancewiththeCommissions
Guidelines. It is important to emphasize that when a listing agent relies on the square
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8MeasuringSquareFootage
ootage determined by another person, the agent assumes ull responsibility or
the accuracy o that persons square ootage measurements and calculations.
Responsibility to veriy accuracy o advertised square ootage. A listingagent is
expected to veriy that the square ootage reported in any orm o advertising, includingMLS property sheets and data banks, is correct. It is no deense or the listing agent
to claim that a clerk made a mistake when entering the data.
Absolute perection in reporting square ootage accurately is NOT expected!!
The Commission realizes that any ve competent agents who might be asked todetermine the square ootage o even an average house may very well come up with
ve dierent answers. However, i the Guidelines are ollowed, the dierences should
be slight and insignicant.
There is no fxed margin o acceptable error. Contrary to popular belie, the
Commission does not have a xed acceptable percentage o error that agents
can rely on. The percentage o error that would be considered acceptable varies
according to the design and characteristics o each particular dwelling. For examplea relatively small error o only a ew percentage points in a dwelling with a simple
rectangular design and no particularly unusual or complex design characteristics maybe considered a signicant error. On the other hand, a somewhat larger degree o
error might be acceptable or a dwelling that is odd-shaped or has many unusua
eatures that substantially complicate the process o measuring and calculating square
ootage. The Commission will apply a reasonably knowledgeable and prudent agent
standard when considering complaints involving errors in reporting square ootage.
A range may be used when reporting square ootage. Remember, there is no
requirement that square ootage be advertised or disclosed up ront. Consequently
i a listing agent or listing service chooses to report square ootage as a range, thenthis is acceptable. Note, however, that reporting square ootage as a range, then this
is acceptable. Note, however, that reporting square ootage as a range may not be
satisfactorytomanyprospectivebuyers!Also,MLSsystemsmaynotbedesignedto
permit entry and reporting o a range.
Suggestion to licensees:Ifyoudontknowhowtoproperlycalculatethesquarefootage
of someportion ofa particularproperty, andyou cantobtain reliable, competent
assistancetosolvetheproblem,eitherdontreportthesquarefootageorreportthesquare ootage as a range.
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MeasuringSquareFootage9
Comments on Duty Agents Working with Buyers
Reliance on listing data. The Commission recognizes that it is totally impractica
and unreasonable to require an agent working with a buyer to routinely veriy the
square ootage o all properties shown to the buyer. Thus, the Guidelinesprovide that
anagentworkingwiththebuyerisasellersagentorabuyersagent!
In a substantial majority o transactions, an agent working with a buyer will be able
to rely on the square ootage inormation provided by the listing agent and will not be
expectedtopersonallyverifythesquarefootage,eveniftheagentisabuyersagent
However, when there is a red fag situation, the agent working with the buyer thenhas a duty to veriy the square ootage.
Red Flag-Whatismeantbythisterm?
Aredagsituationexistswhenthereisanerrorinreportedsquarefootagethat
should be obvious to a reasonably prudent agent showing a dwelling to a prospective
buyer.
Example 1:Asimplerectangularhousewithonly1200squarefeethasareported
squarefootageof1450(a21%error).Areasonablyprudentagentshouldprobably
recognize this problem when showing the house.
Example 2: An average-size house with common design features has a largeunnished room (e.g., an enclosed porch) that was improperly included in the reported
squarefootage.Areasonablyprudentagentshouldrecognizethesquarefootage
error when showing the house.
Example 3: During a showing, the agent notices that the listing data shows the
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10 Measuring Square Footage
dimensionsofthelivingroomtobe30x15,buttheagentorbuyernoticesthatthe
room appears shorter, and upon checking, nds the room dimensions to actually be20x15.Thisshouldprobablyserveasaredagtoareasonablyprudentagent
who should check to make sure the error in reported room dimensions is not refected
in the reported square ootage or the dwelling.
Corrective Action in Red Flag Situations:
1. The rst action to be taken by an agent working with the buyer when he/she
encounters a red fag situation is to promptly point out the suspected error to boththe buyer and the listing agent. The appropriate action or agents to take ater that
is determined primarily by their agency status.
2. The listing agent, upon being alerted to the potential problem, must then recheck
the reported square ootage and correct any error in the inormation reportedThe listing agent will want to make sure all prospective buyers have the corrected
inormation.
3.Asellers subagent working with the buyer may rely on the veried or corrected
square ootage gure reported by the listing agent ater being alerted to the redfag.
4.Abuyers agent, under agency law, has a higher duty to the buyer than does
asellerssubagentworkingwithabuyer. Consequently, it isnotsufcient fora
buyersagenttosimplyreportasuspectedproblemtothelistingagentandthenrelyonthelistingagentsrecheckingofthesquarefootage.Under the Guidelines, when
there is a red fag, a buyers agent must independently measure and calculate the
square ootage i the buyer has any urther interest in the dwelling.Thebuyers
agent must then advise the listing agent o any errors he/she nds.
Note: Asapracticalmatter,theagentworkingwiththebuyercanfrequentlyndthe
error very easily and then simply report the problem and the correct square ootage to
the listing agent and buyer. When it is very easy or the agent working with the buyer to
personallycheckthereportedsquarefootage,evenasellerssubagentmaywanttodo
so prior to contacting the listing agent, especially i the buyer is particularly interested inthepropertyand/oriftheagentsrmlistedtheproperty.
Square Footage Questions Raised by the Buyer
Query/Discussion Point: What should an agent working with a buyer do when the
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Measuring Square Footage 11
buyerraisesaquestionaboutthereportedfootage?Whendoessuchaquestioncreatearedagsituation?
Answer/Comment: Every question raised by a buyer about the reported square ootage
doesnotnecessarilyconstitutearedagundertheCommissionsGuidelines. Common
sense must prevail in these situations.
Example 1: Anagentshowingahousenoticesnoredagregardingthesquarefootage.
The buyer, however, makes the ollowing comment to the agent: Some o these rooms
seemawfullysmall.Doyouthinkthishousereallyhas2250squarefeet?Istheagen
requiredtopersonallyverifythesquarefootage?
Answer/Comment: The agent working with the buyer would have no duty under the Rea
Estate License Law and these Guidelinesto veriy the reported square ootage, even i the
agentisabuyersagent,unlessthe buyer can provide some logical reason or suspecting
thesquarefootageisincorrect.Thebuyersgutfeeling,standingalone,isnotenoughtoconstitutearedag.(Iftheagentsharesthebuyersgutfeeling,thenmaybetheagent
shoulddouble-checkthesquarefootage.)Itisverylikelythatinthissituationabuyers
agent would also have no duty under the common law o agency to personally veriy the
square ootage. The agent should, however, be especially alert or red fags wheneve
a buyer has raised any question about the accuracy o reported square ootage. Theagent should explore with the buyer why the buyer thinks the reported square ootage
isincorrect.Mostoften,thebuyersconcerncanbeeasilyresolvedwithouttheagent
having to measure the entire house and completely recalculate the square ootage.
Example 2:Abuyerisveryinterestedinmakinganofferonalistedhouseandthe
buyer asks the agent working with him/her to veriy the reported square ootage. Upon
questioning the buyer, it becomes apparent to the agent that the buyer has no particular
reason or questioning the reported square ootage, but the buyer says it is very important
to him/her to know the exact square ootage, and the buyer insists that he/she would likeor the agent to make sure the reported gure is correct. The agent notices no red fag.
Istheagentrequiredtopersonallyverifythesquarefootage?
Answer/Comment: I the agent is a buyers agent, the agent is obligated to personally
verifythereportedsquarefootage.Agencylawdutiesrequireanagenttocomplywithhis/
herprincipalsreasonableinstructionsandtoexerciseskill,careanddiligenceinserving
the principal. Unlike the situation in Example 1, where the buyer casually questioned
thesquarefootageandwasntthatconcernedaboutit,herethebuyerclearlyexpressed
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12 Measuring Square Footage
major concern about the square ootage and emphasized its importance to him/her.
On the other hand, i the agent is a sellers agent, the agent is NOT legally obligated to
honorthebuyersrequestandpersonallyverifythesquarefootage.
Note: As a practicalmatter, anagent working with a buyer, regardless of his/heragency status, will obviously need to do something to satisy the concern o the buyer in
Example 2 above. Typically, concerns expressed by a buyer about the reported size othe property will ocus on a particular room or area rather than the total reported square
ootage or the entire dwelling. In those very common situations, the agent working
with the buyer should simply measure and calculate the square ootage o the entiredwelling. However, it may occasionally be necessary or an agent working with a buyer
toverifythesquarefootagejusttosatisfythebuyer,eveniftheagentisasellersagent
and has no legal obligation to do so. One possibility is or the agent to suggest that he/
she and the buyer measure the house together.
Inexperienced Agents and Unusual Situations
Real Estate agents are expected to be able to accurately calculate the
area of most dwellings. Agents who are inexperienced in calculating
square ootage should seek the assistance o their broker-in-charge or
moreexperiencedagents.Andwhereacomplex,odd-shapeddwellingis involved, which presents measuring problems not contemplated by
these Guidelines, even experienced agents should seek the help o a
State-licensed or State-certied appraiser or an experienced engineer or
architect to assist them in solving the problem.
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Measuring Square Footage 13
Comments on Inexperienced Agents and Unusual Situations
The Commission expects licensees to have the knowledge and ability to personally
measure and accurately calculate the square ootage o dwellings to the extent thatthe square ootage problem they are acing is one contemplated by the concepts
and methods presented in these Guidelines. The Commission recognizes, howeverthat inexperienced agents will generally need more assistance rom their broker-in-
charge or other more experienced agents. The Commission also recognizes that the
Guidelinesdo not address every situation that an agent might encounter. Thus, any
agent, regardless o their experience, may occasionally need to seek assistance romothers when they are conronted with an unusual situation not addressed by these
Guidelines.
A licensee who makes a conscientious eort to personally determine square ootage
using these Guidelines and who seeks assistance when uncertain how to solve anunusual problem will always are better beore the Commission than a licensee who
does not do these things.
Caution: Remember that agents who simply rely on the square ootage determined
by another person will be held strictly accountable or any errors made by the otherperson.
Comment on Agents Who Choose to NOT Report Square Footage
The logic behind this position is that a real estate seller should be able to expect to
receive rom a listing rm the level o service that is customary in their communityunless the rm has contracted with the seller to provide a lesser level o service
Clearly, in a market where square ootage is routinely advertised, the ailure to
advertise square ootage or a dwelling would place the owner o that dwelling at a
competitive disadvantage.
Agents Who Choose to NOT Report Square FootageIn areas where the prevailing practice is to report square ootage in the
advertising and marketing o homes, agents whose policy is NOT to calculate
and report square ootage must disclose this act to prospective buyer and
seller clients beore entering into agency agreements with them.
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14 Measuring Square Footage
MEASURING
General Rule
The amount o living areaand other area in dwellings is based upon exterior
measurements.
General Procedures and Suggestions
Aone-hundred-foot-long tapemeasureisrecommendedforuseinmeasuring
the exterior o dwellings, and a thirty-oot retractable tape or measuring interior andhard-to-reachspaces.Atapemeasurethatindicateslinearfootageintenthsofa
oot will greatly simpliy your calculations. For best results, take a partner to assist
you in measuring. But i you do not have someone to assist you, a screwdriver or
other sharp tool can be used to secure the tape measure to the ground.
Beginatonecornerofthedwellingandproceedwithmeasuringeachexterior
wall.
Round o your measurements to the nearest inch (or tenth-o-a-oot i your
tape indicates ootage in that manner).
Makeasketch o the structure. Write down each measurement as you go, and
recorditonyoursketch.Aclipboardandgraphpaperarehelpfulinsketchingthe
swelling and recording the measurements.
Measureliving areaand other area, but identiy them separately on your sketch.
Lookforoffsets(portionsofwallsthatjutout),andadjustforanyoverlapof
exterior walls (Fig. 3) or overhang in upper levels (Fig. 5).
Exception to using exterior measurements: When you cannot measure anexterior surace (such as in the case o attics and below-grade areas), measure the
perimeter walls o the area rom the inside o the dwelling. Remember to add six
inches or each exterior wall and interior wall that you encounter in order to arrive at
theexteriordimensions(Fig.2,3,4,6).
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Measuring Square Footage 15
CommentonAccuracyinMeasuringandCalculating
You may be wondering why the Guidelines call or measurements to the nearest
inch or tenth o a oot and rounding o total square ootage to the nearest squareoot when you have already been told that absolute precision in reporting square
ootage is not essential. It is true that the Commission is not concerned about
very small, insignicant errors and will be reasonable in its expectations regardingaccuracy o reported square ootage. Nevertheless, licensees should still strive
to be as accurate as possible when determining square ootage. Several small
errors can be compounded into a signicant error i one is not careul.
Measure all sides o the dwelling, making sure that the overall lengths o the ront
and rear sides are equal, as well as the ends. Then inspect the interior o thedwelling to identiy spaces which cannot be included in the living area.
You may also nd it helpul to take several photographs o the dwelling or later use
when you return to your oce.
CALCULATING SQUARE FOOTAGE
From your sketch o the dwelling, identiy and separate living arearom other
area. I your measurements are in inches (rather than tenths-o-a-oot), convertyour gures to a decimal as ollows:
1=.10ft. 7=.60ft.
2=.20ft. 8=.70ft.
3=.25ft. 9=.75ft.4=.30ft. 10=.80ft.
5=.40ft. 11=.90ft.
6=.50ft. 12=1.00ft.
Calculate the living area(and other area) by multiplying the length times the width oeach rectangular space. Then add your subtotals and round o your gure or total
square ootage to the nearest square oot. Double-check your calculations. When
in doubt, re-check them and, i necessary, re-measure the house.
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16MeasuringSquareFootage
Basic Area Calculations and Illustrations
R ectangle (oR SquaRe )
Area=LengthxWidth Area=20x10
Area=200SquareFeet10
20
c i R c l e
Area=R2
R (radius)= Diameter(1/2 x 20=10)
(Pi) = 3.14 Area=3.14x102
Area=3.14x(10x10) 20 Area=314SquareFeet
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Measuring Square Footage 17
tR i a ng l e
Area=Base x Height 2
Area=10x152 Area=1502
15 Area=75SquareFeet
10
Area= Base x Height 2
Area=25x102
Area=2502
Area=125SquareFeet
25
--
- 10--
---
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15
20 10
18MeasuringSquareFootage
tRap e zo i d
Area = (Base A + Base B) x
Height
Area=(20+30)2x15
20 Area=502x15
BaseA Area=25x15
Area=375SquareFeet
Base B 30
AlternativeSolution
1. DivideAreaintoaRectangleandaTriangle
2. CalculateAreaofRectangle(20x15=300)
3. CalculateAreaofTriangle(10x152=75) 4. AddResultsofSteps2and3
(300+75=275 SquareFeet)
20
15
---
--
-----
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MeasuringSquareFootage19
Comments on Heated Standard
Basic Rule: I an area does NOT have a conventional heating system, do
NOT include the area as living area.
Exception: For a dwelling with no conventional heating system that is
intended only or summertime (warm season) use in an area that is very
warm all season (or example, a beach cottage), it is acceptable to report
LIVINGAREACRITERIA
L
iving area (sometimes reerred to as heated living area or heated square
ootage) is space that is intended or human occupancy and is:
1. Heatedby a conventional heating system or systems (orced air, radiant, solar, etc.)
that are permanently installed in the dwelling-not a portable heater-which generates
heat sucient to make the space suitable or year-round occupancy;
2. Finished, with walls, foors and ceiling o materials generally accepted or interior
construction (e.g., painted drywall/sheet rock or paneled walls, carpeted or hardwood
fooring, etc.) and with a ceiling height o at least seven eet, except under beams,
ducts, etc. where the height must be at least six eet our inches [Note: In rooms
with sloped ceilings (e.g., nished attics, bonus rooms, etc.) you may also include as
living area the portion o the room with a ceiling height o at least ve eet i at least
one-hal o the nished area o the room has a ceiling height o at least seven eet.];
and
3. Directly accessible rom other living area(through a door or by a heated hallway
or stairway).
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20 Measuring Square Footage
the unheated square ootage as living area provided an appropriate note is included
in the remarks section o MLS data and any prospective buyer is advised that there
is no conventional heating system.
Comments on Rooms with Sloped Ceilings
It is important or agents to be careul when applying the living area criteriato rooms
with sloped ceilings. Such rooms are requently encountered, but they also requently
do not ully satisy the living areacriteria. Special attention must be paid to properly
determining i a room with a sloped ceiling meets the ceiling height criteriaand to
determining the amount o square ootage to include in living area or rooms that
satisy all the criteria.
Above-grade and Below-grade
Real Estate appraisers and lenders generally adhere to more detailed criteria in arriving
at the living areaor gross living area o residential dwellings. This normally includes
distinguishing above-grade rom below-grade area, which is also required by manymultiple listing services. Above-grade is dened as space on any level o a dwelling
which has living areaand no earth adjacent to any exterior wall on that level. Below-grade is space on any level which has living area, is accessible by interior stairs, and
has earth adjacent to any exterior wall on that level. I earth is adjacent to any portion
o a wall, the entire level is considered below-grade. Space that is at or on grade isconsidered above-grade.
Reporting a Single Living Area Square Footage Figure
While real estate agents are encouraged to provide the most complete inormationavailable about properties oered or sale, the Guidelinesrecognize that the separate
reporting o above-grade and below-grade area can be impractical in the advertising
and marketing o homes. For this reason, real estate agents area permitted under these
Guidelines to report square ootage o the dwelling as the total living area without
a separate distinction between above-grade and below-grade areas. However, tohelp avoid conusion and concern, agents should alert purchasers and sellers that the
appraisal report may refect dierences in the way living areais dened and described
by the lender, appraiser, and the North Carolina Building Codewhich could aect the
amount o living areareported.
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Measuring Square Footage 21
Comments on Allowing the Reporting o a Single Living Area SquareFootage Figure
The square ootage guidelines or single-amily residential dwellings developed bytheAmericanNationalStandardsInstitute, Inc. (ANSI) call for thesquarefootage
o living area to be reported separately as above-grade and below-grade rather
than as a single gure or total living area. This is also the practice ollowed byappraisers(andpossiblysomeothers),andtheUniformResidentialAppraisalReport
(URAR)standardformusedformostresidentialappraisalscallsforseparateentries
or above-grade and below-grade.
AlthoughtheCommissionunderstandsthelogicbehindthispractice,theCommission
believes it is in the best interest o both real estate consumers and licensees to permit
the reporting o the square ootage o a dwelling as a single gure or the total livingareawhen homes are being advertised and marketed. Reporting o square ootage
as above grade and below grade would be unnecessarily conusing to many realestateconsumers.Acharacterizationofportionsofapropertyasbelowgradecan
in some instances, be quite misleading and could be prejudicial to the property owner
Agentsshould,however,makeitapracticetoadvisesellersandbuyersthattheymay
encounter appraisal reports with the square ootage reported as above-grade and
below-grade.
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22 Measuring Square Footage
Primary Space Included in Living Area-Finished Rooms Used or
General Living
Determining whether an area is considered living areacan sometimes be conusing.
Finished rooms used or general living (living room, dining room, kitchen, den,
bedrooms, etc.) are normally included in living area. For other areas in the dwelling,the determination may not be so easy. For example, the ollowing areas [shown onthe next two pages] are consideredliving areai they meet the criteria (i.e. heated,
nished, directly accessible rom living area):
Examples o Other Space Included in Living Area
I the Living Area Criteria is Met
o Attic, but note in the listing data that the space is located in an attic (Fig. 2).
[Note: I the ceiling is sloped, remember to apply the ceiling height criteria.]
o Basement (or Below-Grade), but note in the listing data that the space is
located in a basement or below-grade (Fig. 1). [Note: For reporting purposes,
a basement is dened as an area below the entry level o the dwelling which is
accessible by aullfight o stairs and has earth adjacent to some portion o at
least one wall above the foor level.]
o Bay Window, i it has a foor, a ceiling height o at least seven eet, and otherwise
meets the criteria or living area(Fig. 2).
o Bonus Room(e.g., Finished Room over Garage) (Fig. 3). [Note: I the ceiling is
sloped, remember to apply the ceiling height criteria.]
o Breezeway(enclosed).
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Measuring Square Footage 23
o Chimney, i the chimney base is inside the living area. I the chimney
base is outside the living areabut the hearth is in the living area,
include the hearth in the living areabut not the chimney base (Fig. 1).
oClosets, i they are a unctional part o the living area.
o Dormers(Fig.6).
o Furnace (Mechanical) Room, also, in order to avoid excessive
detail, i the urnace, water heater, etc. is located in a small closet in
the living area, include it in living area even i it does not meet other
living area criteria (Fig. 4).
o Hallways, i they are a unctional part o the living area.
o Laundry Room/Area(Fig.6).
o Ofce(Fig. 1).
o Stairs, i they meet the criteria and connect to living area(Fig. 1, 2,
3,4,5,6).Includethestairwaywiththeareafromwhichitdescends,
not to exceed the area o the opening in the oor. I the opening
or the stairway exceeds the length and width o the stairway, deduct
the excess open space rom the upper level area. Include as part o
the lower level area the space beneath the stairway, regardless o its
ceiling height.
o Storage Room(Fig.6).
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24 Measuring Square Footage
Comments on StairsBasic Rule #1- Include as part o the lower level area the space beneath the stairwayregardless o its ceiling height.
I the lower level rom which a stairway ascends is living area, the area occupied b
the stairway, including all space directly beneath the stairway, is always included in th
lower level square ootage or living area.
Basic Rule #2- Include the stairway with the area rom which it descends, not to exceethe area o the opening or the stairway exceeds the length and width o the stairwaydeduct the excess open space rom the upper level area.
I the upper level rom which a stairway descends is living area, and the opening o
the stairway on the upper level is no larger than the total area occupied by the stairway
then there is no deduction rom the square ootage or the upper level living area. NoteA vast majority o stairways have openings to the upper level that are smaller tha
the total area occupied by the stairway and no adjustment to the upper level squar
ootage will be necessary.
Astairwayopeningontheupperlevelthatislargerthantheareaoccupiedbythe
stairway is ound in dwellings that have vertical interior open space with the stairwa
located in the open area, such as a dwelling with an open oyer.
When the opening on the upper level that is larger than the area occupied by thestairway is ound in dwellings that have vertical interior open space with the stairwa
located in the open oyer.
When the opening on the upper level is larger than the area occupied by the stairwayonly include the area o the stairway (as determined on the lower level) in the squarootage or the upper level. In other words, the portion o the opening on the uppe
level that exceeds the area o the stairway is NOT included in the square ootage o
the upper level.
Suggestions or Measuring Stairways in an Open Foyer or Other Open Space
Straight Stairway- Standing on the lower level, measure rom the bottom o the stairs t
the point beneath the stairs where the stairs connect to the upper level to determine th
length o the area occupied by the stairs, then multiply the length by the width o the stairs
Stairway with Angled Turn (Dogleg) Divide the stairway into sections and measure i
the manner described or a straight stairway, then add together the gures or each section.
the turn in the stairway orms an angle that is less than a right angle, it is acceptable to squareo the turn and calculate the area o each section as a rectangular-shaped area rather than to
calculate the area o each section as a trapezoidal-shaped area.
Curved Stairway- Standing on the lower level, measure beneath the stairway along the
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Measuring Square Footage 25
line o the curve as best you can to determine the length o the area occupied by the
stairs, then multiply the length by the width o the stairs.
Stairs that Flare Out at the Top or Bottom For the portion o the stairs that
fare out, use an averagewidth determined by measuring the width o the stairs at
the middle o the section that fares out. Unless the fare out portion o the stairs is
signicantly wider than the rest o the stairs, it is also acceptable to simply ignore thefared-out area and to treat the stairs as though they were straight.
Spiral Stairway-Atruespiralstairwayhasatwo-dimensionaloorareaintheshape
o a circle. The technically correct way to determine the area is to determine the
radius(one-halfthediameter)ofthestairwaysoorareaandapplytheformulafordetermining the area o a circle. It is also acceptable to square o the foor area
beneath the spiral stairway, thus creating a square, and to use the gure calculated or
the square area.
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26MeasuringSquareFootage
CommentsonRoomAdditionsandOtherStructuralModications
Note that the heated living area standard requently comes into question with regard
to room additions or remodeled areas such as sunrooms, enclosed porches, converted
garages and attics. Listing agents should always inquire about the heating system or
areas such as these that requently do not have conventional heating systems.
The Commission does not expect licensees to possess the expertise to determinewhether a conventional heating system is truly adequate, nor is it necessary or a
licensee to consult with a heating and air conditioning specialist when a question
arises about heating. Licensees are, however, expected to be a (1) recognizewhether or not an area has a conventional heating system and (2) employ a
common sense approach to determining whether an area is adequately heated. I
a licensee enters a reezing cold room in the winter, it is reasonable to expect that
licensee to at least make an appropriate inquiry into the matter. (Try turning on the
heat and seeing i it warms up!)
OTHER AREA
Note that in the listing data and advise purchasers o any space that does NOTmeet the criteria or living areabut which contributes to the value o the dwelling;
or example, unnished basements, unnished attics (with permanent stairs),
unnished bonus rooms, shops, decks, balconies, porches, garages, and carports.
HELPFUL HINTS
Ducts, Chases, Returns, etc.
Concealed in the walls o nearly all residential construction are pipes, ducts,chases,returns,etc.necessarytosupportthestructuresmechanicalsystems.
Althoughtheymayoccupyliving area, to avoid excessive detail, do not deduct
the space rom the living area.
Room Additions and Other Structural Modifcations
When measuring and reporting the living areao homes, be alert to any remodeling,
room additions (e.g., an enclosed porch) or other structural modications to assure
that the space meets all the criteria or living area. Pay particular attention to the
heating criteria, because the heating system or the original structure may not beadequate for the increasedsquare footage. Although agentsare not required to
determine the adequacy o heating systems, they should at least note whether there
are heat vents, radiators, or other heat outlets in the room beore deciding whether to
include the space as living area.
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Measuring Square Footage 27
Comment on Vertical Interior Open Space
House designs with vertical interior open space such as an open oyer
are becoming increasingly more popular in new houses and are causing
signicant problems in situations where agents (and builders, designers,appraisers,andothers)dontknowhowtoproperlydeterminethesquare
footageofhouseswithsuchafeature.Agentsneedtobeespecially
careul when determining the square ootage o houses with verticalinterior open space. Sometimes the open space covers a very large area,
not just the oyer, and improper treatment o such space can produce avery large error in reported square ootage. Because the reported square
ootage o houses with vertical interior open space is requently in error,
anyagentworkingwithabuyer,especiallyabuyersagent,shouldbe
especially alert to the possibility that the reported square ootage may be
incorrect.
Common Wall between Living Areaand Other Area
When an area that is NOT part o the living area(e.g., a garage) shares a commonwall with the living area, treat the common wall as the exterior wall or the living
area; thereore, the measurements or the living area will include the thickness o the
common wall, and the measurements or the other area will not.
Vertical Interior Open Space (e.g., Open Foyer)
Interior space that is open rom the foor o one level to the ceiling o the next higher
level is included in the square ootage or the lower level only. However, any area
occupied by interior balconies, lots, etc. on the upper level or stairs that extend to the
upper level is included in the square ootage or the upper level.
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28MeasuringSquareFootage
Comment on Measuring Condominiums
It is legally possible or a condominium to be dened in the recorded plat
or the condominium regime in such a manner that a portion o exterior
walls, rather than merely interior space, would be owned by the unit
owner. Agents arenot, however,expected tocheck therecordedplat
in the register o deeds oce. The best practice is or agents to simplymeasure paint-to-paint and to not include the thickness o any exteriorwalls or common walls.
Comments on Using Blueprints or Building Plans
Agentsmay safely rely onblueprints orbuildingplans for determining
square ootage only or proposed construction or or dwellings whichare not suciently completed to measure accurately. Once a dwelling
has been built, the agent must measure the structure and calculate the
square ootage. I blueprints are used to determine the square ootage
o a proposed dwelling or purposes o marketing, then the listing agent
should personally veriy the square ootage ater construction is complete
i the sale o the dwelling has not already been closed.
The reason or permitting only limited reliance on blueprints and building
PROPOSED CONSTRUCTION
For proposed construction, your square ootage calculations will be
based upon dimensions described in blueprints and building plans. Whenreporting the projected square ootage, be careul to disclose that you have
calculated the square ootage based upon plan dimensions. Thereore,
the square ootage may dier in the completed structure. Do not rely on
any calculations printed on the plans.
ATTACHED DWELLINGS
When measuring an attached single-amily home (e.g., townhouse,duplex, condominium, etc.), use the same techniques just described. I
there is a common wall, measure to the inside surace o the wall and
add six inches. [Note: In the case o condominiums, do not include the
thickness o exterior or common walls.] Do not include any common
areas (exterior hallways, stairways, etc.) in your calculations.
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MeasuringSquareFootage29
plans is that changes are very commonplace during the construction process, and
some o these changes can be substantial.
ILLUSTRATIONS
For assistance in calculating and reporting the area o homes, reer to the
ollowing illustrations showing the lising area shaded. To test your knowledge,an illustration and blank worksheet or a home with a more challenging foor
planhas alsobeen included. [See gure 8.] (Followingcompletionof the classexercise, your instructor will review with you a completed worksheet or the Practice
Floor Plan.)
In reviewing the illustrations, assume that or those homes with basements, attics, etc.
the exterior measurements shown have been derived rom interior measurementstakingintoaccountwallsandpartitions(seepage16). Wherethere isacommon
wall between living area and other area (see page 30). the measurements shown inthe illustrations include the thickness o the common wall in living area except in the
condominium example where the wall thickness is not included.
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30 Measuring Square Footage
INTRODUCTION
OnJuly1,1999,theNorthCarolinaRealEstateCommissionpublishedabooklet
titled Residential Square Footage Guidelines. For many years, the Commission
received numerous complaints involving the inaccurate reporting o square ootage or
homes listed or sale. The inaccuracies were the result o various problems, including:
Carelessness on the part o the agent, particularly the listing agent, when measuring
a house and calculating square ootage; a lack o understanding by the agent o theproper method or determining square ootage; improper reliance on the square ootage
reported by another party (e.g., seller, previous listing agent, tax records, etc.); and the
absence o generally acceptable guidelines or determining square ootage. The primar
purpose o the Guidelinesis to assist real estate licensees and encourage greater
uniormity and accuracy in determining and reporting the square ootage (living area)contained in single-amily residential buildings/units.
The Guidelinesweretaughtinthe1999-2000RealEstateUpdateCourseandarebein
taught in the Salesperson Prelicensing Course. They generally have been very well
received by licensees and are believed to have improved substantially that accuracy oreported square ootage or residential properties.
CONCERNS WITH AGENTS RESPONSIBILITY SECTION OF RESIDENTIAL
SQUARE FOOTAGE GUIDELINES
During 2000 and early 2001, the Commission became aware that many licenseeshad some concerns about the Agents Responsibility section o the Guidelines,
particularly the statement that listing agents are expected to personally measure th
properties they list and accurately calculate their square ootage and the accompanyinstatement that The listing agent wil be held accountable or the accuracy o square
ootage inormation the listing agent reports to prospective purchasers The primaryconcern was that, under the Guidelines, agents, especially listing agents, were
generally expected to personally determine the square ootage o dwellings in almost
every transaction without exception, and that even when the Guidelinespermitted
an agent to obtain the assistance o a more qualied person, the agent would still
be held responsible or the accuracy o square ootage determined by such person,regardlessofthepersonsqualications.Manylicenseesindicatedthattheybelieved
this expectation was too harsh and asked the Commission to consider a wider range ocircumstances under which reliance upon the expertise o others would be reasonable.
There also was some concern that the Guidelinesdid not provide sucient guidance
as to the expected degree o accuracy regarding reported square ootage. It is true thareading the Guidelinesalone could convey the impression that an extraordinary high
degree o accuracy was being demanded o agents when they determine and report
square ootage. The Commission was asked to provide clarication in the Guidelineso
this matter.
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Measuring Square Footage 31
Important Reminder
Real estate agents are NOT required by the Real Estate License Law or Real
Estate Commission Rules to report the square ootage o properties oered or sale or
rent. Thus, agents may elect to not report square ootage at all to clients or customers.
However, any signicantly incorrect square ootage that is reported either orally orin writing would constitute a misrepresentation o a material act (either willul or
negligent, depending on the circumstances). This is why it is very important to assure
that any reported square ootage is reasonably accurate.
REVISIONS TO AGENTS RESPONSIBILITY SECTION OF RESIDENTIAL
SQUARE FOOTAGE GUIDELINES
In response to the concerns expressed by members o the industry, the
CommissionmadesubstantialrevisionstotheAgentsResponsibilitysectionofits
Residential Square Footage Guidelineseective May 9, 2001. In act, the entiresection was rewritten in an eort to address the concerns mentioned above.
Presented below are portions o the actual text o the Guidelines, identied by the
specic point addressed in the quoted text o the Guidelinesis labeled Text, is
indented on both sides and appears in italics.
BASICCOMPETENCYSTANDARDEXPECTED
Text
Real estate agents are expected to be able to accurately calculate the square ootage
o most dwellings. When reporting square ootage, whether to a party to a real estate
transaction, another real estate agent, or others, a real estate agent is expected toprovide accurate square ootage inormation that was compiled using these Guidelines
or comparable standards.Comments
This basic general standard is the same as that expressed in the previous version o
the Guidelines. This indicates that the Commission expects any licensed real estateagent to possess the knowledge and skills necessary to measure and calculate the
square ootage omostresidential properties. Aswillbeapparentfromareadingof
the remainder o this section, the Commission recognizes that many agents may not
possess the ability to accurately determine the square ootage o dwellings o complex
designorwhichpresentunusualmeasurementproblems.Anexampleofsucha
propertyistheoneshowninFigure8oftheGuidelines. On the other hand, agentsshould be capable o determining square ootage o a substantial majority o dwellings
that have relatively common design eatures, such as those dwellings illustrated in
Figures 1-7 o the Guidelines.
Additionally,theabovequotedtextrestatesapointalsomadeintheIntroduction
to the Guidelinesproviding that, when square ootage is reported by an agent, the
Commission expects the reported square ootage to have been compiled using these
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32 Measuring Square Footage
Guidelinesor comparable standards.
DEGREEOFACCURACYREQUIREDText
While an agent is expected to use reasonable skill, care and diligence when
calculating square ootage, it should be noted that the Commission does not expect
absolute perection. Because all properties are unique and no guidelines can
anticipate every possibility, minor discrepancies in deriving square ootage are notconsidered by the Commission to constitute negligence on the part o the agent.
Minor variations in tape readings and small dierences in rounding o or conversion
rom inches to decimals, when multiplied over distances, will cause reasonable
discrepancies between two competent measurements o the same dwelling. In
addition to dierences due to minor variations in measurement and calculation,discrepancies between measurements may also be attributable to reasonable
dierences in interpretation. For instance, two agents might reasonably dier about
whether an addition to a dwelling is suciently nished under these Guidelines to be
included within the measure living area. Dierences which are based upon an agentsthoughtul judgment reasonably ounded on these or other similar guidelines will notbe considered by the Commission to constitute error on the agents part. Deviations in
calculated square ootage o less than ve percent will seldom be cause or concern.
Comments
The text in the revised version seems to be basically sel-explanatory. While
the text in this version provides clarication in the Guidelinesregarding the degree
o accuracy expected by the Commission, it does not represent a change in theCommissionspositiononthismatter.Aswasexplainedduringthe1999-2000Update
Course, the Commission does not expect absolute perection in deriving squareootage and is unconcerned about very minor, insignicant errors such as those
described in the above-quoted text o the revised Guidelines.
Althoughtheabovequotedtextindicatedthatdiscrepanciesinreportedsquarefootage
o less than ve (5) percent will seldom be cause or concern, it should be mentioned
that there is no xed margin o acceptable deviation.
Whether a particular discrepancy is considered problematic depends on the
circumstances o the particular case, including the size o the dwelling and complexityo its design. It is possible that a discrepancy greater than ve percent might be
acceptable or some dwellings, especially those that are quite large and also have
unusual and complex design eatures. On the other hand, a discrepancy o more
than ve percent might be considered problematic or a very small house (e.g., onewith 1,000 square eet) that has a simple rectangular box design with no eatures to
complicatethemeasurement.Asisclearlyimpliedbythequotedtext,theCommission
will apply a common sense reasonableness standard when considering complaints
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Measuring Square Footage 33
involving errors in reported square ootage.
AGENTS RESPONSIBILITY TO PERSONALLY MEASURE AND DERIVE SQUARE
FOOTAGE
As a general rule, the most reliable way or an agent to obtain accurate squareootage data is by personally measuring the dwelling unit and calculating the square
ootage. It is especially recommended that listing agents use this approach ordwellings that are not particularly unusual or complex in their design.
Text
The above provision refects a signicant clarication in the Guidelinesregardingthe responsibility o a listing agent with regard to square ootage that is to be reported
The previous version o the Guidelinesindicated fatly: When reporting square
ootage, listing agents are expected to personally measure the properties they list and
accurately calculate their square ootage, listing agents are expected to personally
measure the properties they list and accurately calculate their square ootage.BecausetheCommissionsrevisedGuidelinesgrant agents more fexibility to rely on
square ootage determined by certain other qualied proessionals (a point that will be
discussed subsequently), the statement indicating that a listing agent is expected to
personally measure and calculate square ootage has been replaced by statements
indicating that personal measurement and calculation is generally the best way or anyagent to assure that reported data is accurate and that it is especially recommended
that listing agents use this approach or dwellings that are not particularly unusual
or complex in design. This point will be better understood ollowing the subsequent
discussions o reliance on square ootage reported by other persons.
The Commission still strongly recommends that listing agents personally measure the
dwellings they list and calculate their square ootage i square ootage is to be reported.
RELIANCE ON SQUARE FOOTAGE REPORTED BY OTHER PERSONS-GENERAL
STANDARD
Text
As an alternative to personally measuring a dwelling and calculating its square
ootage, an agent may rely on the square ootage reported by other persons when it is
reasonable under the circumstances to do so.
Comments Itistheabove-quotedsentencefromtherevisedsectiononAgent
Responsibility that refects the most signicant change rom the previous version.
Under the OLD GuidelinesThe previous version o the Guidelinesindicated that inexperienced agents
should seek assistance rom their broker-in-charge or more experienced agents
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34 Measuring Square Footage
and that Where a complex, odd-shaped dwelling is involved which presents measuringproblems not contemplated by these Guidelines, even experienced agents should seek
the help o a State-licensed or State-certied appraiser or an experienced engineer
or architect to assist them in solving the problem(s). When considered in conjunction
with the provision in the ormer Guidelinesrequiring listing agents to personally
measure most houses they list and calculate their square ootage, these provisions in
the ormer version o the Guidelinesmade it appear that an agent could rely on
square ootage determined by other qualifed persons only when the agent was
inexperienced or was dealing with a property o complex design.
Under the NEW GuidelinesThe new version o the GuidelinesreectsaneasingoftheCommissions
previous statement regarding reliance by an agent on square ootage reported by other
persons. This is particularly true with regard to a listing agents responsibilities,
since under the old guidelines, listing agents were expected to personally measure mos
dwellings they list and to calculate their square ootage.
The text o the revisedGuidelinescited above sets orth the general standardthat an agent may rely on the square ootage reported by other personswhen it is
reasonable under the circumstances to do so.
To assist the reader in better understanding the general standard, the remaindero the paragraph in the Guidelinesthat includes the above-cited text, as well as the two
paragraphs that ollow in the Guidelines, all provide examples o circumstances under
which it would be reasonable or not reasonable to rely on square ootage reported by
other persons. These examples are discussed urther below.
RELIANCE ON LISTING AGENTS REPORTED SQUARE FOOTAGE BY AGENTS
WORKING WITH A BUYER
Text
Generally speaking, an agent working with a buyer (either as a buyers agent or as a
sellers agent) may rely on the listing agents square ootage representations except
in those unusual instances when there is an error in the reported square ootage thatshould be obvious to a reasonably prudent agent. For example, a buyers agent would
not be expected to notice that a house advertised as containing 2200 square eet oliving area in act contained only 2000 square eet. On the other hand, that same agent
under most circumstances, would be expected to realize that a house described as
containing 3200 square eet really contained only 2300 square eet o living area. Ithere is such a red fag regarding the reported square ootage, the agent working with
the buyer should promptly point out the suspected error to the buyer and the listing
agent. The listing agent should then veriy the square ootage and correct any error in
the inormation reported.
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36MeasuringSquareFootage
o the square ootage they report, even experienced agents may wish to rely upon a
competent state-licensed or state-certied appraiser or another agent with greaterexpertise in determining square ootage. For example, an agent might be conronted
with an unusual measurement problem or a dwelling o complex design. The house
described in Figure 8 in these Guidelines is such a property. When an agent relies
upon measurements and calculations personally perormed by a competent appraiser
or a more expert agent, the appraiser or agent must use these Guidelines or othercomparable
standards and the square ootage reported must be specically determined in
connection with the current transaction. An agent who relies on anothers
measurement would still be expected to recognize an obvious error in the reported
square ootage and to alert any interested parties.Comments
This paragraph is intended to provide examples o some situations when it would be
reasonable to rely on the square ootage determined by someone other than the listing
agent.
RELIANCE ON SQUARE FOOTAGE DETERMINED BY PERSONS OTHER THAN
THE LISTING AGENT.
From a reading o the above-quoted text, one can see that it is probably
reasonable to rely on square ootage determined by persons other than the listing
agent i:
The other person determining the square ootage possessesspecial expertise
in measuring residential properties and calculating their square ootage.
The other person utilizes the CommissionsResidential Square Footage
Guidelines(or other comparable standards) in determining and reporting thesquare ootage.
The determination o square ootage made by the other person is made in
connection with thecurrent transaction.
The other person with special expertisepersonallymeasured the property and
made the calculations.
Note that reliance on the square ootage reported by other qualied proessionals
is no longer limited to situations where the agent is inexperienced or the dwelling
is o complex design, although these continue to be circumstances which would
tendtojustifyseekingassistancefromanotherqualiedperson.Agentsmayrelyon the square ootage reported by other persons in any transaction so long as theconditions described above are met, nor do these listed conditions describe all o the
possiblecircumstanceswhichmightreasonablyjustifyrelianceuponanotherpersons
measurement.
RelyingonAppraisers
The Guidelinesspecically provide the example o relying on a competent state-
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Measuring Square Footage 37
certifed or state licensed-appraiser.Astate-certiedorstate-licensedappraiser
may generally be assumed to be competent unless the agent is aware osome inormation that would make a reasonably prudent agent suspect that the
appraiser is not competent to determine the square ootage. To rely on the square
ootage determination o an appraiser, the ollowing conditions must be met:
(1) The appraiser must use these Guidelines(or comparable guidelines) to determine
and report the square ootage.(2) The determination must be made in connection with the current transaction. Thus
as will be noted again later in the Guidelines, square ootage determined by an
appraiser in connections with an appraisal perormed in connection with a previoustransaction generally may notbe relied upon.
(3) The appraiser must have personallydetermined the square ootage. I the square
ootage was not personally determined by the appraiser reporting the square
ootage (or by another competent appraiser acting or the appraiser reporting the
square ootage), the square ootage may not be relied upon. (Note that square
ootage determined or a state-certied or state-licensed appraiser by an appraisertrainee, which is a airly common practice in the appraisal industry, generally
maynotberelieduponwithoutverication.Arealestateagentgenerallyshould
possess expertise in determining square ootage that is comparable or superior to
that o an appraiser trainee. I, or example, a listing agent is considering reliance
on square ootage reported in an appraisal perormed or the property owner, thelisting agent should rst veriy rom the appraiser that he/she , or another certied
or licensed appaiser, personally pulled the tape and calculated the square
ootage.)
RelyingonAnotherRealEstateAgent
The Guidelinesalso cite the example o relying on square ootage determined by
anotherrealestateagentwithgreaterexpertise.Actually,itisnotalwaysreasonableto
rely on another agent who has greater expertise in determining square ootage, and it
is not always necessary that the other agent have greater expertise-it depends on the
actual level o expertise possessed by the agent who will be determining the squareootage.
Example1:Anagentwithonemonthofexperiencegenerallywouldnotbejustied
in relying on square ootage determined by an agent with two months o experience.Althoughtheagentwithtwomonthsofexperiencemayhaveslightlygreaterexpertise
than the agent with one month o experience, the more experienced agent would
almost certainly be considered as not possessing sucient special expertise to justiy
reliance on his/her determination by the less experienced agent. The inexperienced
agent who wants to engage the services oanother agent to determine square ootage would need to identiy and employ the
services o an agent who possess special expertise in this area. One must look at an
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38MeasuringSquareFootage
agentsoverallqualicationsandreputationwhendeterminingwhetheritisappropriate
to rely on square ootage determined by that agent. It is not sucient to look only at anagentsyearsofexperience.
Example2:Anagentwith15yearsexperienceinresidentialsalesisperfectly
competent to personally determine the square ootage o most dwellings. However,the agent engages the services o a licensed assistantin his brokerage activities and
wants to be able rely on square ootage determined by the licensed assistant. Thelicensed assistant had two years o residential sales experience prior to aliating with
the agent. Over a period o several months, the agent spends a substantial amount
o time training the assistant on how to measure and calculate the square ootage omany dwellings with a wide variety o design eatures. The assistant has measured
manypropertiesandhasbecomequiteprocient.TheCommissionsGuidelines
are used as the basis or such training. The agent is satised that the licensed
assistant now possesses special expertise in determining the square ootage. In
such circumstances, the agent is probably justied in relying on the square ootage
determined by his licensed assistant even though the assistant has substantially lessexperience, and perhaps less expertise in determining square ootage, than does the
agent.
When relying on square ootage determined by another real estate agent, the same
three conditions as are listed above or relying on appraisers must be satised.
Relying on Other Proessionals
It is possible that another proessional other than real estate agent or appraiser
could be relied on under the Guidelineseven though no such additional proessionals
are specied in the Guidelines. I any such other proessional were to be used,however, the agent relying on square ootage determined by such person would bearthe burden o showing the person actually possesses the necessary expertise AND
that the same three conditions as are listed above or relying on appraisers have been
satised.
ADDITIONAL LIMITATION ON RELIANCE ON SQUARE FOOTAGE DETERMINED
BY OTHER PROFESSIONALS
Anagentwhoproperlyreliesonaqualiedprofessionaltodeterminedsquare
ootage in accordance with these Guidelinesis not relieved o all responsibility or the
accuracy o the reported data in every case. The agent is still expected to recognize anobvious error in the reported square ootage and to alertany interested parties. The reliance by an agent on the qualifed proessionals
square ootage determined must always be reasonable. Anagentmaynotengage
a third party to determined square ootage and then simply turn a blind eye to what
is an obvious error in the resulting area measurement or the means by which it was
obtained.
8/6/2019 J. Measuring Square Feet
39/39
ADDITIONAL EXAMPLES REGARDING RELIANCE ON SQUARE FOOTAGE
DETERMINATIONS OF OTHER PERSONS
Text
In areas where the prevailing practice is to report square ootage in the advertising
and marketing o homes, agents whose policy isnotto calculate and report squareootage must disclose this act to prospective buyer and seller clients beore entering
into agency agreements with them.Comments
This provision was also included in the previous version o the Guidelines.
AgentsarenotrequiredbytheRealEstateLicenseLaworCommissionRuletoreportthe square ootage o properties oered or sale or rent. However, the practice is
so commonplace that real estate consumers may reasonably expect that an agent,
especially a listing agent, will do this. The ailure to provide some prospective buyers
or renters with the square ootage o a listed property may very well adversely aect
themarketabilityofthatpropertyandmayimpairaprospectivebuyersorrenters
ability to make an inormed decision to buy or rent. Thereore, these Guidelinescontainthe above-quoted instruction in order to assure that prospective clients are aware
inadvanceofenteringintoanagencyagreementoftheagentspolicytonotreport
square ootage.