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There is a home that my husband and I are trying to purchase. It is a REO property. It was disclosed to us that there is a extra room added onto the side of the property that there is no C O for. What would be involved in getting one? Would it be possible to if we are not the owners yet? Any help would be appreiated. thx!
Whatever you do, don't purchase a home without a CO. It could be big money to get it if you need to make changes to pass inspection for that room. It is a headache not worth it. The current owner is responsible for getting a CO and it could take months.
We had a similar issue with the home we're currently in contract with. The deck and mudroom were add ons from the 70's but were not permitted. The owners agreed to a price reduction which is great, and since we'll be tearing it all off ourselves this is money in our pockets.
Remember that you and the seller are essentially working toward the same goal and you should be able to work out a solution that is mutually beneficial.
I'd have an inspector look at it. If it looks solid and is up to code, it shouldn't be a big problem to get a CO.
Alternatively, if it's solid and up to code, then you can just leave it. You'll get the benefit of the extra space without getting a tax increase because of it.
Have the seller get the CO before you sign the papers on closing day!
Quote:
Originally Posted by trinisweetness
There is a home that my husband and I are trying to purchase. It is a REO property. It was disclosed to us that there is a extra room added onto the side of the property that there is no C O for. What would be involved in getting one? Would it be possible to if we are not the owners yet? Any help would be appreiated. thx!
My parents had to get a CO on their entire house when they sold it since there was no such thing as a CO when it was built OR when they bought it. It wasn't that big of a deal. They had even added a deck - they had to change the steps on the deck but that was it.
Look, most areas of the country don't have such strict CO rules. I find NY tends to over regulate in order to create more civil servant positions.
The buyer here should know that if they do make the seller get a CO, their taxes will increase significantly. So, they have to weigh that vs. the risk that some element of the addition is dangerous. That's why I recommended getting a good inspector to look at it.
Depending on the loan/bank, the proper CO's may need to be in order for closing to go through, so this may not be entirely up to the buyer/seller if such conditions exist.
Getting a CO usually takes many months, and cannot be completed in the time frame of contract-to-sale. Some plumbing COs can be accelerated but a CO for a room seems like a longer time frame. Often, money is put into Escrow for getting a CO. The buyer has the option of specifying this in the contract, withhold money ( could be 2% of purchase price, 10k or whatever it takes to get a CO) in escrow and make the sellers responsible for getting the CO if they need the escrow money. If the seller does not get a CO within 12 months, the escrow money will be paid out to the buyer. Discuss this with your attorney.
Many times, a variance will be required.. and that means you would need the blessings of your neighbors to have the extra room. You should contact the town.. or better, a drafting service that is experienced in obtaining COs and variances about this. If you need a variance, it costs more, and there is no guarantee you will get one, so take that into consideration.
Also be aware that your taxes will go up once you get a CO.
I'd have an inspector look at it. If it looks solid and is up to code, it shouldn't be a big problem to get a CO.
Alternatively, if it's solid and up to code, then you can just leave it. You'll get the benefit of the extra space without getting a tax increase because of it.
Thanks for the response. What type of inspector? Is it the one from the town? If so, can i do that even though we dont own the house?
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