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Old 07-30-2014, 10:13 AM
 
10 posts, read 28,825 times
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Quote:
Originally Posted by SandyJet View Post
Of course. I closed on a house with COs open for a dormer, third bathroom, florida room and two decks. My inspector said it was to code and I had 20K in excrow to pay for permits.

Permits got done six months later, cost me like 2k, got money out of escrow and seller got 18K back.
So well how does it work.....so in your case looks like you were responsible for dealing with the permits post closing. Did you know that everything was upto code before closing ? Also was the inspector hired through you or the seller ?
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Old 07-30-2014, 10:16 AM
 
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Quote:
Originally Posted by twingles View Post
I doubt your lender will close with these permit issues in play. You really need to get a straight answer on this from lender/attorney/agent.
If they will allow it ask for a LOT in escrow. Get an estimate what cost will be to remedy any defects and ask for double that because once all is said and done it will be that much. Remember once you own that house you own ALL it's problems. And once you let the town on your property they can make you fix anything they want before giving you a CO for the deck.
We had an open permit on
Out house and lender would not close till we closed it. And our buyers were putting 30% down and highly qualified. In the end I was glad to walk away without an escrow hanging over me.

Well that's a good point so I will double check on that. However on phone my loan originator (lender) said that we do not need these issues to be closed at least from the bank side. Then I said well the title company needs it cleared though.
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Old 07-30-2014, 10:20 AM
 
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Originally Posted by 85dumbo View Post
I'm house hunting, and seems like every house has some non-permitted patio, bathroom, finished basement.
Such a pain in the ass with these, and selling agent always says its fine/no big deal.
I don't even bother putting offer on these houses anymore.
I agree....the listing agents keep telling everything is clean.....then we sign the contract and end up knowing that there are issues after doing a title search which doesn't leave enough time to fix the issues until close....I just dont understand how can I make sure the listing agent is not lying that the house we are considering doesn't have permit/CO issues.....what a pain this is !!!!
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Old 07-30-2014, 10:26 AM
 
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Originally Posted by pidge1114 View Post
I closed on my house where the deck had no CO. I was still able to close, I just had to sign something saying I was aware the deck was without a permit, with the risk down the road of paying penalties to get one, or having to rip it down.
The document which you signed was provided by whom ? Was it the seller attny/bank attny or title company ?
In your case the seller just absolved himself from doing anything and hence all is your problem now......
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Old 07-30-2014, 10:32 AM
 
1,606 posts, read 2,946,325 times
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Quote:
Originally Posted by owner2b View Post
The document which you signed was provided by whom ? Was it the seller attny/bank attny or title company ?
In your case the seller just absolved himself from doing anything and hence all is your problem now......
It was between the 2 attorneys.

Yes basically it is my problem, but as long as I don't bring the town onto my property, it won't be an issue. It happens all the time though. Especially with finished basements with kitchens that may have been used for apartments.

Not saying you should do it that way, but just know that sales happen with out having COs.
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Old 07-30-2014, 10:36 AM
 
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Originally Posted by pidge1114 View Post
It was between the 2 attorneys.

Yes basically it is my problem, but as long as I don't bring the town onto my property, it won't be an issue. It happens all the time though. Especially with finished basements with kitchens that may have been used for apartments.

Not saying you should do it that way, but just know that sales happen with out having COs.
Yes the houses being old people have just built things but without permit due to the excessive amount of time and process it takes.....

I hope you dont mind me asking but why didn't you take the escrow route....unless the seller was adamant on take it or leave it kinda......

But then did your lender and title company agree to that too.....this is the part which is more confusing. I can understand the buyer himself fine with taking on these issues but what about the lender & title companies ?
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Old 07-30-2014, 10:42 AM
 
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Originally Posted by owner2b View Post
Yes the houses being old people have just built things but without permit due to the excessive amount of time and process it takes.....

I hope you dont mind me asking but why didn't you take the escrow route....unless the seller was adamant on take it or leave it kinda......

But then did your lender and title company agree to that too.....this is the part which is more confusing. I can understand the buyer himself fine with taking on these issues but what about the lender & title companies ?
The bank and title company did not care.

I didn't go the escrow route because we were getting an amazing deal on the house, so if it ever does become an issue, then I'd have to eat it I guess. But wouldn't be a problem unless I try to put a pool in my yard to call attention to it.
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Old 07-30-2014, 10:55 AM
 
4,538 posts, read 6,412,643 times
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Quote:
Originally Posted by owner2b View Post
So well how does it work.....so in your case looks like you were responsible for dealing with the permits post closing. Did you know that everything was upto code before closing ? Also was the inspector hired through you or the seller ?

Actually it is a funny story. I knew he added a third bathroom and a small deck. My inspector checked it out. Cost to demo a bathroom and deck are well under 20K so we were happy with 20K.

My lawyer put in contract seller would pay for all open COs. Turns out when inspector came he noticed dormer done without a permit and a second deck with out a permit. That work was done two owners ago. The owner I bought house from did not even realize it and now was stuck paying for all permits.

The prior owner paid for a useless CO expeditor. I ended up taking day off of work, dealing with TOH, had an inspector come to my house one or two times and fixed a minor electrical issue. Total was not much, submitted receipts and got paid and got permits.

Other than the TOH inspector asking for some Cash in hand to speed process to which I responded I just bought and not selling in next 20 years and I can only get money from escros with a receipt so I dont think you are getting any cash from me I was ok.
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Old 07-30-2014, 10:58 AM
 
4,538 posts, read 6,412,643 times
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some people want to close on a house with no permit for stuff like central AC or a deck. Why it just jacks taxes and decks and central ACs dont last forever, you can always get the permit 5-20 years down the road when you redo it and save on 5-20 years worth of taxes
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Old 07-30-2014, 11:18 AM
 
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Quote:
Originally Posted by pidge1114 View Post
The bank and title company did not care.

I didn't go the escrow route because we were getting an amazing deal on the house, so if it ever does become an issue, then I'd have to eat it I guess. But wouldn't be a problem unless I try to put a pool in my yard to call attention to it.
Well you are correct....just spoke to the bank and they say you are clear to close so you should be fine....rest with the issues just hold the sellers money in escrow and they have to fix it......ughhhhh !!!
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