Got a mortgage on a property with no certificate of occupancy
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COO are a relatively new thing. Plenty of houses don't have them or did have them but they don't exist anymore. The standard building code makes it the responsibility of the city to retain the records, not the property owner. On an older house it's meaningless anyway since there could have been shoddy repairs.
It would be unusual for a house to have utilities if it didn't have a COO at the point they were connected, it's the doc that tells everyone it's ok to turn on the power.
Houses especially starter houses require maintenance and things break and wear out over time. You get what you pay for, pay your mortgage or you'll have trouble even renting an apartment.
It's also possible it was sold "as is"? We bought a vacant home, and our closing instructions told us to get a C.O. (we haven't done it though). We had a hard time getting power on not because it didn't have a C.O. but because the home hadn't had power in over a year. We had to apply to have the electrical system inspected by the township, then after they inspected they gave the go-ahead to the utility company that it was okay to turn the power on. Was a PITA because we had a 203K (rehab loan) with a time limit on when the work had to be done, and we lost over a month waiting for the township to inspect. We ended up paying mortgage AND rent for a couple of months until the house was livable.
This was on top of the whole-house inspection that was done prior to closing.
When my mother moved to assisted living, we sold her home "as is" too, as it needed tons of work. As long as it's disclosed "as is", there's not a requirement that everything be in working order when you sell a home. Of course we barely made more than she paid for it (less than she paid if you count mortgage interest all those years) but we just needed to get rid of it as soon as possible.
When my mother moved to assisted living, we sold her home "as is" too, as it needed tons of work. As long as it's disclosed "as is", there's not a requirement that everything be in working order when you sell a home. Of course we barely made more than she paid for it (less than she paid if you count mortgage interest all those years) but we just needed to get rid of it as soon as possible.
On the bright side, had she rented you would have gotten zero from all the years she paid rent.
On the bright side, had she rented you would have gotten zero from all the years she paid rent.
That’s true, but maybe we could’ve gotten her out of there before she declined so much. As it was, when we told her she couldn’t live there by herself anymore (Rowhome 90 minutes from me with laundry in basement and only bathroom on the second floor) we got “I am not selling this house until I get the roof fixed!” Okay, get the roof fixed...”I can’t afford to get the roof fixed!!” And I spend an extremely stressful 2 years working full time and driving back and forth from the shore to northeast Philly trying to keep her alive.
All the money in the end went to assisted living, but yes having the money from the sale help get her into assisted living even though she’s there on Medicaid now.
You guys are really passionate in your responses. I am in litigation with the seller and GC. I have great credit and intend on keeping it that way. I think I was just frustrated with everything happening. Thanks for your input.
Since we don't know where you are, it's hard to say, but ....
the lender would generally want the CO, and the title agent generally is responsible for obtaining it.
th lender wants it because it is a condition of their collateral.
the title company is not only getting it because a lender would require it, but they are supposed to be representing your best interest. At least in NC, the "title agency" (which is an attorney) represents your interest as well as the bank's.
Regardless, your first call is against the builder, who knew damn well they were supposed to have a CO. If you can't get satisfaction there - and the title company is likely helping on that front - then I would expect the Bank to seek relief (repairs and a valid CO) from the title company.
by the way - are the builder, the title company, and/or the lender ... any 2 of these 3 "related"?
When should a buyer be looking for a certificate of occupancy?
This is not something I had thought about much since I buy used residential properties.
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