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I posted a question but not clearly described, now I post again to clear the whole story, thanks for your guys help.
5 days before closing, our attorney noticed us the we have to fix C/O for basement before closing and showed us the contract which states seller don't provide C/O for basement and above ground pool etc. at closing, at this time we already signed contract and get loan from bank.
When we signed contract we were told basement has no C/O and our agent told us a lot properties sold without C/O as long as attorney and lender accept it, attorney didn't say anything about C/O when we sign contract.
Now attorney told us Seller suddenly somehow let town officer walked in and then they found the basement has egress window which not satisfy code, we asked her why they allow them walk in and when it happened our attorney said no clue about that, seller estimate fixing egress window will cost $2200 they will extend a credit of $1000 if we want to leave the basement as it is. I definitely want to let seller fix the window issue but then attorney told us it is not an option to us and seller will either dismantle the basement or give us a credit of $1,000.00 towards we obtaining the C/O, and emphasized we are not in a position to cancel the contract and obtain our downpayment back.
Anybody can advise how can we handle this case, again thank you very much.
So it sounds like what happened here is there was a permit pulled for the basement at some point in the past, and the permit was never closed, so the CO was never issued. Now the seller is trying to close the permit, so they let the town in to do the inspection, and it's not to code. All of this was known to all the parties at the time of contract, and either was not conveyed to you, or was not conveyed in a way that you understood.
YOUR attorney is now telling you this is your problem.
I suggest you either read your contract carefully or - since it's sounds like English is not your first language - hire another attorney to read it for you and tell you exactly what you are in for.
What does your lender say? Are they willing to close without the CO? Some lenders won't do it.
Our lender don't care C/O at all. All we know at contract time is there is no CO for basement if we knew basement not to code then it should be different story we may ask for price down or walk way.
The contract items regarding C/O is:
"At closing, Seller shall deliver to Purchaser a Certificate of Occupany or Compliance covering all structures presently erected upon the subject premises, except for any shed, above-ground pool, or finished basement which will be removed without allowance or abatement of purchase price if same is an impediment to closing as determined by the Purchaser's lender. if the said structures were erected prior to the time when the governing authority issued such Certificates, the Seller shall deliver a letter from the said Governing authority indicating such facts."
My suggestion assuming everything you wrote. And without checking contract with a good attorney.
If I'm stuck as your attorney says. I'd close as is. Fix the window. Then sue my agent and the seller in small claims for repair. And I would not accept. Or sign anything else regarding their offer of 1000.
My suggestion assuming everything you wrote. And without checking contract with a good attorney.
If I'm stuck as your attorney says. I'd close as is. Fix the window. Then sue my agent and the seller in small claims for repair. And I would not accept. Or sign anything else regarding their offer of 1000.
YOUR attorney is now telling you this is your problem.
I suggest you either read your contract carefully or - since it's sounds like English is not your first language - hire another attorney to read it for you and tell you exactly what you are in for.
Why? I think the OP has been taken advantage of. A native English speaker would have trouble with a lot of contacts/legalese. They drop this bombshell on him and expect him to fall into lockstep so they can collect their money.
I agree with loveithateit - don't sign anything else, document everything, close on the house, make it all right with the town and then start suing. At some point all of this BS with COs, RE agents, lawyers and towns on LI has to be made right and not on the backs of the citizens.
Is it legal to list house for sale with open permits? Can I treat basement as illegal since it is not to code and withdraw contract?
Happens all the time. A person close to me bought a house with a finished basement w/ a full bathroom a deck and small 10 x 7 extension off the kitchen, none of these things had permits or c/o's. The Prior owner never filed anything so the town has no idea. The lender didn't care and either did the buyer. With that said the purchase price of the home was based off the house having no extension, finished basement and a 4th bathroom.
Just my opinion but most likely 70% of all finished basements on LI have no permit's or c\o.
Happens all the time. A person close to me bought a house with a finished basement w/ a full bathroom a deck and small 10 x 7 extension off the kitchen, none of these things had permits or c/o's. The Prior owner never filed anything so the town has no idea. The lender didn't care and either did the buyer. With that said the purchase price of the home was based off the house having no extension, finished basement and a 4th bathroom.
Just my opinion but most likely 70% of all finished basements on LI have no permit's or c\o.
This ^ if the buyer dosent make an issue of it (and most don't) houses with all sorts or improvements sans proper permits are sold and bought all the time.
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