Buying Property with missing CO's (banks, price, inspection, lenders)
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I know there are a number of threads on this forum about this, but they don't match entirely my scenario so i was hoping for some input...
The current owner applied for permits for their dormer, small extension, and bathroom (in the dormer), but never got the CO's for it. Keep in mind, the permit(s) were filed back in 1960. I just pulled copies for my records.
I plan on working with my CU for financing on this and will be gutting the entire interior. Once I do that I am willing to take the risk on filing for the CO at this point since i am re-doing all the electric(with proper permits, etc...)...my question is this...does anyone have experience dealing with the credit unions/banks in this type of situation? Are they willing to work with you at all?
We were in the process of getting COs when we sold our house 19 months ago (on LI). The bank would NOT let the buyers close without COs - period. These were well qualified buyers putting down about 30%.
I think the only way you can get around this right now is with a builder's loan. I know someone selling a house without COs and originally they were going to get the COs but they then got a buyer who was getting a builder's loan.
The problem with these people getting COs now is that the stuff they did 30 years ago is not going to be up to today's code and it will be a major pain to make that happen.
Many people pull permits but never get the final inspection. Tha could also influence how it is looked at.
This post was moved here from the Long Island forum - LI is a hotbed of houses that have all sorts of work done that was never permitted, most of it done, historically, by weekend warriors and their friends. All of these chickens are now coming home to roost, as banks realize what they are taking on with these non-code-compliant projects, and cash-strapped towns and villages on LI see DOLLAR SIGNS for the permits AND a way to keep the people in patronage jobs on the dole.
It's an extremely difficult area to be a buyer because even if you can get a house for a semi-decent price, you really have no idea what you're getting into.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Our issue is that the building department was formed in 1961 and there were no building permits issued before then. The agency also tossed out a bunch of permit information in the 1980's because they didn't have the storage space to keep them.
It's sort of a nightmare now with lenders who will not understand that.
If there is not a CO, try getting a Certificate of Existing Use. We had that problem on Long Island ; the house was old, built in 1929 and the Towns records were burned I guess in the 50's.. So as a result, we needed a CEU. First we had to go to the tax office and get records to proove that taxes were paid before 1959, then we needed an updated survey. This showed two small decks which we did not build, but didnt have CO's (small ; I mean one was 3x8 and an entryway). So we got a demo permit, got the CEU issued and was able to go ahead with the sale.
Our issue is that the building department was formed in 1961 and there were no building permits issued before then. The agency also tossed out a bunch of permit information in the 1980's because they didn't have the storage space to keep them.
It's sort of a nightmare now with lenders who will not understand that.
My parents' house was built in 1933 and there was no CO because they didn't exist then. When they went to sell the house after living there from 1961 to 2004, they had to get one. The town told my dad they needed the building plans to make sure there had been no changes made. Can you believe my packrat dad still had them??? Hoarder win!
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,225,232 times
Reputation: 6468
Quote:
Originally Posted by twingles
My parents' house was built in 1933 and there was no CO because they didn't exist then. When they went to sell the house after living there from 1961 to 2004, they had to get one. The town told my dad they needed the building plans to make sure there had been no changes made. Can you believe my packrat dad still had them??? Hoarder win!
I am going to research okaydorothy's suggestion in a little more detail. The house was built in the early 50's and a rear-dormer was added on (permit applied for) in 1953. I went to the town and pulled the paperwork myself. There was one small rear extension done in 1967, but then that was it; nothing changed after that.
If there is not a CO, try getting a Certificate of Existing Use. We had that problem on Long Island ; the house was old, built in 1929 and the Towns records were burned I guess in the 50's.. So as a result, we needed a CEU. First we had to go to the tax office and get records to proove that taxes were paid before 1959, then we needed an updated survey. This showed two small decks which we did not build, but didnt have CO's (small ; I mean one was 3x8 and an entryway). So we got a demo permit, got the CEU issued and was able to go ahead with the sale.
Thanks for this info. Even though i just replied, i found out this is only good for houses built before 1938...oh well, back to the drawing board.
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