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We are in contract on a home with a closing date in or around March 30th. The title report revealed that there is no certificate of occupancy for a partial garage conversion. We requested that the sellers obtain the proper C of O. With that being said we are almost sure that the c of o will not be obtained by the date of our closing. It seems our options at this point are to 1. Delay the closing until proper co is fully obtained OR 2. Request that the seller put money in escrow. However, we are not sure how much money to expect in escrow for the cost of the c of o and any other issues that may arise in the process. We have consulted with our attorney and should hear back this week but we are looking for information from individuals in this forum who have had similar experiences. This is our first home buying experience so we are very careful in making any decision without guidance. Any advice/input would be greatly appreciated! Thanks in advance.
Not a big deal, I closed on my house with outstanding COs seller just put money into escrow until the CO paperwork came in. Only issue was I had to go to town to drop some stuff off and town did final inspection a few months after I closed. But seller paid out of escrow. And that was worst case.
I would say most folks would not even have asked for this CO. It is not a big deal. Expanding square footage, dormered, yes yes yes get CO but a small deck, garage conversion where door is still up that type of stuff is worse case down the road you get caught you have to remove it.
My case guy dormered house, put a third bathroom and a deck with no CO.
This is good advice. There are a couple of considerations:
1. The town or village may determine that the conversion was not done properly and requires additional work be done in order to get the C/O. This is where the escrow will help.
2. You will want to understand the impact of the C/O on your property taxes, which may affect your desire to buy the house. The impact could very well be negligible, but you should get an idea from someone who knows.
This is good advice. There are a couple of considerations:
1. The town or village may determine that the conversion was not done properly and requires additional work be done in order to get the C/O. This is where the escrow will help.
2. You will want to understand the impact of the C/O on your property taxes, which may affect your desire to buy the house. The impact could very well be negligible, but you should get an idea from someone who knows.
Thank you! So should we put more in escrow in the event the town determines the conversion was not done properly? What if we close without The COs and it costs more than $5,000-$10,000 to correct?
Thank you! So should we put more in escrow in the event the town determines the conversion was not done properly? What if we close without The COs and it costs more than $5,000-$10,000 to correct?
If it costs more to correct, you're on the hook.
I don't think $5000-$10000 is enough.
Would you be willing to have this partial garage conversion go back to being a full garage?
Would you be willing to have this partial garage conversion go back to being a full garage?
I would prefer that the garage conversion remain with the proper COs in place. We put an offer on the house being under the impression everything was done legally and correctly. I would hate to see it go but I think it would only be fair for the seller to escrow at least the cost of correcting the issue (converting back to the garage-if need be-getting the proper COs-and converting the garage back to part of the house). Am I wrong to feel this way? I am just unsure how much all of this would cost. I want to be sure there's enough in escrow in the event it becomes our (the buyers) issue.
It's really hard to say as we don't know the scope of work they did.....how well it was done in the first place...and then there's the inspectors.
If you get one that really wants to play hardball.....bring all electrical up to code, etc. with fines, permits and the work......you're talking easy $20K when all is said and done.
If you really, really like this house...have seen no others like it... I'd think I'd opt for returning it to a garage. Then, once you're settled in the house.. have lived with it for awhile.. if you need extra space, then convert it properly.
Though.. you may not like having to pay extra property taxes with the additional living area.
We are in contract on a home with a closing date in or around March 30th. The title report revealed that there is no certificate of occupancy for a partial garage conversion. We requested that the sellers obtain the proper C of O. With that being said we are almost sure that the c of o will not be obtained by the date of our closing. It seems our options at this point are to 1. Delay the closing until proper co is fully obtained OR 2. Request that the seller put money in escrow. However, we are not sure how much money to expect in escrow for the cost of the c of o and any other issues that may arise in the process. We have consulted with our attorney and should hear back this week but we are looking for information from individuals in this forum who have had similar experiences. This is our first home buying experience so we are very careful in making any decision without guidance. Any advice/input would be greatly appreciated! Thanks in advance.
We had a similar issue.
Are you working with an attorney? The attorney advised 2x the cost of any necessary renovations should the CO be denied. So if an inspector comes in, says the room is going to collapse in a heap around you unless it's converted back to a garage, you have more than enough money in a fund to deal with the necessary work. You don't want to be stuck correcting someone else's project.
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