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Just to clarify, I would not buy a house if there were open permits or no C of Os on key parts, such as extensions or decks. You're setting yourself up for higher taxes and -- who knows? -- maybe even fines. The seller should clear those up beforehand. Otherwise, the buyer takes on an unknown liability and it changes the cost of the house. It's bad enough that home inspection companies do such a poor job that you end up with costly surprises in terms of repairs. Why let yourself in for additional risk when a seller could easily clear up these administrative problems?
This sounds similar to when I was buying my house. There was an open permit on the garage that was built in 1955 but no C of O. The sellers rectified it and had it filed just before we closed. It didn't affect our tax assessment.
Another house we looked at did not have any permits or C of O's on the deck and pool (it was half in and half above ground). The seller didn't want to pay to remove it or handle any of the permits so I passed on it. I just didn't want any headaches because the basement was finished with a bathroom so we figured if there were no permits and CO's for the outside, I didn't want to get hit for anything on the inside.
Have you already put down a deposit and gone into contract on this house?
And congrats on the new home! Best of luck
There are only 2 permits opened. The double dormer makes sense because they dormered half the house front and back. But there is no garage. The tax assessment site has the dormer listed along with the deck(which has no CO). Im just curious why they filed for 2 permits both for a double dormer but one included a detached 2 car garage. I have not put a deposit down yet nor am i in contract. The contract will have to get hammered out as long as the sellers are willing to do what they need to do. Ive been recommended if I do go through with the purchase to have the seller put funds for the proper permits into an escrow account via my lawyer. I mean I dont know if Im in over my head or if I have it all in writing then Im good to go.
Also, once the inspector comes hasnt the codes changed since 1961? How can they approve an old dormer under current code?
The dormer will have to brought up to today's code. That will be an issue with electric and plumbing (if any). Its all on the seller. I would only close if I know my attorney is a good attorney (to adminster the escrow properly) ANd the escrow amount is very large! Worst case, you could be on the hook for more than $20,000- $30,000! Plus I would want more money for your time and risk!
What if the garage needs a variance and is built to close to the lot line. You could potentially be denied a variance and have to remove the garage. Now you just paided varaince fees, surveyor fees, attorney fees, demolition fees AND you have a house with no garage.
It might be unlikely that could happen. Happened to my client....total mess.
Last but certainly not least, get yourself a very good REAL ESTATE (yes, I am screaming) attorney. They are the experts in this. The good Friend of Joe, who is an attorney, may save you a few $$ on the legal costs and wind up costing you a whole lot more if this purchase is not properly handled.
In addition be aware that many lenders have pulled back on escrow accounts , especially for large amounts.
Ive been recommended if I do go through with the purchase to have the seller put funds for the proper permits into an escrow account via my lawyer. I mean I dont know if Im in over my head or if I have it all in writing then Im good to go.
1. Your bank probably won't give you a loan with an open permit. Our buyers' bank wouldn't (and they put 30% down)
2. There is another recent thread from someone who bought a house with open permits with money in escrow and now the town inspector is asking to see their basement (finished illegally).
Here's the thing - all the money in escrow doesn't change the fact that once you close, the house and all its problems are yours. As I stated previously, whether you buy the house or someone else does, the same title report is going to turn up the same issues that the seller must correct. Why let this become your problem.
And if by chance you DO get your mortgagor to agree to the loan with the open permits, and you choose to go forward, you better make damn sure you get an amount in escrow that will make it very painful for the sellers not to take care of these issues. But remember, they get to choose who does any work that is needed (as kbinspections pointed out, the dormer from 1961 is not going to be up to code, and will need some work to get the CO).
We had the same issue, for an extension, deck, and central a/c. THe title came back 2 weeks before our close date, so really messed things up. The sellers needed to close, we wanted to close. We took the responsibility for obtaining the permits. They were much older and it was just easier for us to handle. They paid for it, Money was put in escrow for this. Some things were not up to code and needed to be fixed. Everything worked out eventually, but I have to say the town of oyster bay is beyond annoying. If you are a person that gets stressed out easily, don't take this on. Depending in what town you are with, they may have you running in needless , waste of time circles.
My taxes went up because of the central A/c. The extension and deck were already on the tax bill.
We had the same issue, for an extension, deck, and central a/c. The sellers needed to close, we wanted to close. We took the responsibility for obtaining the permits. They were much older and it was just easier for us to handle. They paid for it, Money was put in escrow for this. Some things were not up to code and needed to be fixed. Everything worked out eventually, but I have to say the town of oyster bay is beyond annoying. If you are a person that gets stressed out easily, don't take this on. Depending in what town you are with, they may have you running in needless , waste of time circles.
Just curious, when you bought your house? As I indicated and Twingles seconded, in our experience the banks have gotten very selective on lending and especially with such problems as open permits for additions, they are none too happy about large escrow accounts, legal or not.
Just curious, when you bought your house? As I indicated and Twingles seconded, in our experience the banks have gotten very selective on lending and especially with such problems as open permits for additions, they are none too happy about large escrow accounts, legal or not.
The lending world has crashed and burned in the past two years. The lenders don't want to have to go through what you did in the event of a default on the buyers part. Not saying it doesn't happen just they have become VERY cautious.
Happened to a friend of mine. bought his house with no C of O and his taxes were $9100....when then seller finally filed all permits with the town for a deck, second story Bath and extra closet his taxes jumped to $18k. Thats why Nassau county is the Greatest place to live
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