Splitting new construction duplex into separate addresses and getting PID

Dallas, Texas
Mortgage Brokers & Lenders
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Splitting new construction duplex into separate addresses and getting PID

Trey Belmore
Lender · Dallas, TX · Member since 2023 · 18 posts · 6 votes

Does anyone have experience with trying to refinance a new construction property that was built as a 2 unit but split into two separate 1 unit attached properties? We are trying to refinance these as two separate DSCR cash out refinances that will close simultaneously and payoff the construction loan. The issue is my underwriter is saying we cannot close the new address until there is a tax parcel (PID) with Dallas County. The client has created the new address, we have two new surveys and legal descriptions, and he has filed a deed transferring the new address to an LLC he owns 100% and has filed the walls in agreement. My underwriter is saying we cannot close until we have a PID on the new address which could be until 2027. This makes no sense to me but curious if anyone has run into this before or has experience. TIA!

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  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    13h

    I do this all the time in Nashville. Pretty much my bread and butter on a daily basis, I deal with splitting parcels. It is actually a very common practice here in Nashville, where you will essentially legally subdivide private and common elements on the same lot. It might be different here because it is such a common practice that it doesn't take long at all to get the parcel viewer to show the new address. So, it sounds like you have legally split the address; however, it's not showing in their online system.

    I completely understand your underwriter in this situation because, technically, even though everything is recorded, if it's not showing online, it is technically not yet done. The fact that you're saying it'll take until next year honestly sounds absurd to me. In my local market, the actual responsible party for creating and setting new addresses is the Nashville Department of Transportation.

    I have had an issue once exactly like this, where I had legally subdivided a parcel and could not close a loan because it was not correctly reflected in the parcel viewer. And that's when I found out that the Department of Transportation is actually the one that sets the addresses.

    So, what I would do if I were you is contact your local Department of Transportation there in Dallas; go ahead and contact them and see if you can get someone to assist you with this. That's what I did, and they resolved the issue within two or three days.

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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 173 posts · 51 votes
    12h

    @Trey Belmore This sounds less like a DSCR issue and more like a title and collateral issue. If each loan is intended to be secured by a separate property, the lender and title company need to confirm that each unit is a legally distinct, insurable parcel with its own legal description and tax account. A new address, survey, deed, and party-wall agreement may support the separation, but they do not necessarily create the separate parcel record the lender requires. Dallas Central Appraisal District notes that a split based on a filed deed or plat is received through the County Clerk and may not be reflected until the following calendar year if it occurs after January 1. I would ask the underwriter whether this is an investor guideline or a title requirement, obtain the title company's written position, and see whether the lender will accept recorded plat or condominium documents plus evidence that the parcel split is pending. If not, possible alternatives may be refinancing the property temporarily as one two-unit asset, requesting an extension or modification of the construction loan, or moving the file to a lender whose collateral guidelines allow the split to be completed after closing. A Texas real-estate attorney and the title company should confirm that the documents actually created two separately financeable estates before you spend time shopping the file.

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