Garage or pool without C of o's? (Norwalk: bank owned, for sale)

Magdalena1 · 02-04-2011, 08:21 PM

A question in real estate field.
When you have a house for sale that has no C of O's for a pool, deck, or garage- is it possible for a bank to choose not to finance it?
Is there any chance for new buyers to change c of o before the closing?

Cambium · 02-04-2011, 08:38 PM

c of o = Certificate of Occupancy. If the home doesn;t have a certificate of occupancy inspectors will wave the red flag and banks wont finance it. They want to see documents of compliance of the building codes and the CO is one of them.

There was none for my house before closing and an open permit for the basement. Bank wanted a C of O to close so I had to get the home owners to close the permit for the basement in order to get that certificate.

So to answer your question, yes, Banks can choose not to finance it. They want to know their investment is for something that is actually ready for occupancy.

And I believe the seller has to obtain it first then the new owner takes it over after they close.

Magdalena1 · 02-07-2011, 12:58 PM

Ok thanks. The problem is that the house without c of o's was a foreclosure so bank owned the house. Therefore we got refused financing and never closed on that one.

Cambium · 02-08-2011, 08:04 AM

Quote:

Originally Posted by Magdalena1

Ok thanks. The problem is that the house without c of o's was a foreclosure so bank owned the house. Therefore we got refused financing and never closed on that one.

Interesting situation. The town should acknowledge the circumstances and have the permit closed or, you and the bank can sign a "hold harmless clause"

Was the pool, deck or garage started and just not finished? Or finished and just not closed? If its the latter then its simple, have town inspector come out, give you the final and permit closed, cased solved. If its the former then it gets tricky because the town doesnt want to close a permit until they see a completion of the project... If the project wasn't even started then gees, thats the simplest..town should close open permit and issue c of o.

Keep us updated if you plan to pursue purchasing that home. Maybe time to look for another bank if that one wants nothing to do with that property now.

Magdalena1 · 02-08-2011, 06:43 PM

Hi,

The pool and garage exists. The garage is in good condition, as for the pool not sure if it really works, and the lisitng agent doesnt know either. She said that buyers need due deligence for that matter. dThey were built some time ago-not sure when. It seems as the owners never bothered with getting permits, and now since its a bank owned house, there is noone who want to take a risk. The bank that we use to financing the property doesnt want to take a risk, and they said they wont mortgage it. In such case, not sure whose responsibility it is to get CO, but it seems that only someone who would pay cash could get the house.
In that scenario- can new owners get CO for it? Wont they have trouble selling it after sometime without it?
Anyways, we passed on that one.

Cambium · 02-08-2011, 07:45 PM

Quote:

Originally Posted by Magdalena1

Hi,

The pool and garage exists. The garage is in good condition, as for the pool not sure if it really works, and the lisitng agent doesnt know either. She said that buyers need due deligence for that matter. dThey were built some time ago-not sure when. It seems as the owners never bothered with getting permits, and now since its a bank owned house, there is noone who want to take a risk. The bank that we use to financing the property doesnt want to take a risk, and they said they wont mortgage it. In such case, not sure whose responsibility it is to get CO, but it seems that only someone who would pay cash could get the house.
In that scenario- can new owners get CO for it? Wont they have trouble selling it after sometime without it?
Anyways, we passed on that one.

Thanks for update... If it was a good deal on it or something you really liked, I would fight to get it. Sit down in the local town hall with the inspector..tell them you just need to have a c.o in order to purchase the property, tell them the truth that it might not pass inspection and tell them you'll do whatever it takes to satisfy them(inspectors). Whether its fix it up or tear it down...

Here's the kicker.... The taxes will go up once they know there's a pool and garage now. Good luck with your search.

Magdalena1 · 02-09-2011, 06:04 AM

Yes, your right. The taxes would go up thats for sure, and since Norwalk has rather high taxes- it would be about 10K for a year or even more. Cant afford it- especially that it would only get higher every year. Although the house itself was nice...but its a good market for buyers, we will find sth else.

Thanks for all you advice!