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My wife and I finally found a house that we liked. We made an offer, negotiated, settled on a price and thought, "Yay! We're finally buying our first home." Everything seemed to be going well. The bank approved us for the mortgage, inspection turned up nothing untypical for a house of it's age. Survey and appraisal were also fine. On receiving the title report, the bank gave us the OK to close.
A day or two later, my attorney caught this one line in the title report: no certificate of occupancy on file for original structure. So now we're in a holding pattern, waiting for this to be resolved.
The house itself has changed hands multiple times over the last 25 years, in addition to having CO's issued for other updates such as kitchen remodel and tank removal. I guess we're fortunate that the seller is motivated and willing to work to resolve this issue before closing, but it begs some questions:
- Why did our bank not catch the issue before giving the OK to close?
- Why was it missed on prior sales?
- How long does it take to resolve a situation like this?
From my side, we learned a lesson about rate locking for the mortgage. Once we signed the contract and had an "on or about date" we locked in a rate with a little wiggle room (approx. 7 days) - partly because the rates were starting to trend up and partly because of mortgage costs. Now, given that we probably will not close before our lock expires, we're looking at paying $1-2k for a rate extension.
At first I was mad ... now I can't help but laugh at how life can throw up some pretty nasty surprises. We love the house, so we're going to persevere with the deal.
A day or two later, my attorney caught this one line in the title report: no certificate of occupancy on file for original structure. So now we're in a holding pattern, waiting for this to be resolved.
The house itself has changed hands multiple times over the last 25 years, in addition to having CO's issued for other updates such as kitchen remodel and tank removal...
How old is the house? If it's really old (<1938), then of course it isn't really a problem, and I would be surprised that people are observing the fact, since it wasn't required nor especially common before 1938. If it is not, then it is quite challenging. I would want to know how it even happened and why if I could.
How old is the house? If it's really old (<1938), then of course it isn't really a problem, and I would be surprised that people are observing the fact, since it wasn't required nor especially common before 1938. If it is not, then it is quite challenging. I would want to know how it even happened and why if I could.
Originally built in 1922. I asked the same question, but according to my attorney there should bea "pre-date" letter on file with the town to that effect. However, there is not one of those either. If it's as simple as getting a pre-date letter added to the property file then it may not take so long, but if the town requires a CO it could take an age and a wad of cash to get the as-built property drawings done and and inspector to sign off.
Since there are some knowledgeable people here I'm going to hijack the thread to ask a related question if you don't mind. My brother lives in Westchester and had a central air system installed without a permit. I told him at the time he should just get one. Now he is thinking about selling his house. Is he going to run into problems? How do potential buyers know to even to ask about this? What is the likely outcome of this situation? Just pay a fine and be done with it? Or is he going to have to rip out the whole system?
Most town will require you open a permit even after the work has been finalized and obtain Certificate of Occupancy. I know in some towns/villages they charge a penalty at the time of opening permit due to the fact that it was not opened when work started.
As for the lender/attorney finding out that no permit was opened to install new AC, that is tricky. Most will not. However, if you advertise your home as having "brand new AC units" and the real estate agent or buyer remembers this and title comes in and no permits had been open, that would be a way it would be found out. Don't underestimate the real estate agent! They would likely pick up on that when they go to town hall to get property records.
Most town will require you open a permit even after the work has been finalized and obtain Certificate of Occupancy. I know in some towns/villages they charge a penalty at the time of opening permit due to the fact that it was not opened when work started.
As for the lender/attorney finding out that no permit was opened to install new AC, that is tricky. Most will not. However, if you advertise your home as having "brand new AC units" and the real estate agent or buyer remembers this and title comes in and no permits had been open, that would be a way it would be found out. Don't underestimate the real estate agent! They would likely pick up on that when they go to town hall to get property records.
Thanks! One follow up question to this - is it true that not having the permit for the ductwork/ac installation, it could void the homeowners insurance?
If you read your village code, a strict interpretation would mean you need a permit/C.O. if you change a light bulb. Some say it is easier to ask for forgiveness than permission.
in what town do you need a permit for central air? never heard of that.
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