Certificate of Occupancy

The Village has passed a code change requiring ALL owners/sellers of ALL types of properties being sold within the village boundaries to obtain a NEW Certificate of Occupancy 60 day or earlier BEFORE the closing date.

As I understand after I sign a contract – seller will need to provide Certificate of Occupancy, but looking at current building condition, it is very problematic.

Owner is in nursing home and family just want to sell it for a Big Money, but do not want to fix anything.

Any idea how to work it out?

--161.69.xxx.xx

Certificate of Occupancy (by Vee [OH]) Posted on: Jul 18, 2017 8:27 AM
Message:

Add up the repairs needed to pass the inspection, deduct from asking price and slightly more for you troubles - many folks have unrealistic eyesight when selling, the houses re-enter the market 4 months later and again, just make the offer and sit on your price... --76.188.xxx.xx

Certificate of Occupancy (by Richard [MI]) Posted on: Jul 18, 2017 8:36 AM
Message:

That sure looks like it would impact fixer uppers. Why not check with the city and see if they will accept a signed repair contract to begin at closing. If not, how do they expect sellers like you describe and others who cannot afford to do the repairs to comply?

Another idea - if the city won't cooperate, why not give the sellers a deposit and get permission from them to fix the place up. Then do it, get the c.o. and then close.

If you think they might try something like keeping the place and not paying for the repairs, there's always liens but probably better to have a lawyer draw up the papers and have them sign in advance and all filed into escrow. Then when you get the c.o., papers are completed and your place closes. --66.188.xx.xxx

Certificate of Occupancy (by Robert,OntarioCanada [ON]) Posted on: Jul 18, 2017 8:41 AM
Message:

If major repairs are required then that has to reflected in the price. Talk with the town building inspector then see what has to be done. Minimum standards no loose or missing plaster. No loose or missing floor tiles. All surfaces on the walls painted no raw plaster or drywall. All the plumbing and electrical must work. Door locks including bathroom must work along with the roof does not leak. It may take some time to bring the property up to minimum building codes. --192.81.xx.xx

Certificate of Occupancy (by cjo'h [CT]) Posted on: Jul 18, 2017 8:44 AM
Message:

Luna, the fact that the owner is in a convalescent home UPS the price of the house,sad but this is America,supposed to be the richest country in the world,but one of the worst health care systems in the world,compared to some of the even third world countries.and that will never change as long as you keep electing the same bunch of imbeciles to office,they get their health care taken care off, but God help the little guy...............Charlie.................................................

--174.199.x.xxx

Certificate of Occupancy (by Luba [NY]) Posted on: Jul 18, 2017 8:55 AM
Message:

The owner of this house also own insurance company. Hope he is covered.

It is just so confusing… the city will not permit to sell without CO for any money.

I was thinking to ask if seller would agree to give me private loan and deduct repair cost, but doubt it will happen

--161.69.xxx.xx

Certificate of Occupancy (by Vee [OH]) Posted on: Jul 18, 2017 9:02 AM
Message:

Let it sit, no love lost, no money lost, another 400 places go to the auction every week in my area. --76.188.xxx.xx

Certificate of Occupancy (by Barb [MO]) Posted on: Jul 18, 2017 9:07 AM
Message:

Check with city to determine what the policy is to sell a home As IS, knowing it needs work. There must be one.

No way I would pay BIG MONEY for a home that can't pass inspection. Either lowball and see what happens, or pass until they are realistic. --131.151.xx.xx

Certificate of Occupancy (by LindaJ [NY]) Posted on: Jul 18, 2017 9:42 AM
Message:

I would talk with the village person in charge of this. Find out the fine print. Can you close and then repair if the unit is vacant? I can't imagine they require work to be done BEFORE sale on an lease occupied building. Do they want people to just abandon their property because they don't have the fix up money (which is why they want to sell?) Are you sure you have this straight? --96.236.xx.xx

Certificate of Occupancy (by Ken [NY]) Posted on: Jul 18, 2017 11:37 AM
Message:

How will they enforce it? the only thing I can think of would be some kind of requirement that the county clerk would have to cooperate with and I doubt that would happen.They may try to go after sellers but doubt they would get anywhere with that.I would go talk to someone at the clerks office and ask what happens if you file a deed in that town.I am curious what town this is? Whoever can figure this out and how to deal with might be the only guy in town capable of buying houses needing work there. --24.25.xxx.xxx

Certificate of Occupancy (by Robert,Ontario,Can [ON]) Posted on: Jul 18, 2017 11:56 AM
Message:

One may need a vendor take back mortgage then have all the rental units vacant then over a period of time renovate each rental unit. It is impossible to renovate when that involves completely gutting the bathroom, kitchen. The rent maybe far below what other rental units are which means the tenants will not want to move. After a period of time bathrooms wear out along the flooring in the rental units. --74.220.xxx.xxx

Certificate of Occupancy (by Robert J [CA]) Posted on: Jul 18, 2017 12:25 PM
Message:

I am a licensed building contractor with property inspection certification. Several times when I went to purchase a property, the Seller and Listing Agent said, "Everything is Permitted and Legal". What a bunch of "BS"!

So after entering into a purchase contract I have a City Inspector show up and write up the "violations". Building additions to the property without a permit or Certificate of Occupancy.

The seller then states the property is now "As-Is" and they refuse to do any repairs, modifications or obtain a permit. My contract, emails and text messages from the listing agent and seller said the property was all legal with permits of file. Now they are telling me something else.

So I file a lien on the property so they can't sell it to anyone else and record on the title the City's report of violation. And the house is Red-Tagged, no one live there over night.

Finally the price get's dropped and I take it as-is.

--47.156.xx.xx

Certificate of Occupancy (by Luba [NY]) Posted on: Jul 18, 2017 12:27 PM
Message:

Ken, this happening all around lower Westchester area. Dobbs Ferry, Sleepy Hollow, Ossining…

They want fee for the initial inspection and after one more fee to check how repairs was handled, not to count all permit’s fees.

Robert, you have a crystal ball!

Tenants lived there for more than 10 years; rent is about 40-50% below market. Owner let tenant to paint, put new floors etc. Leaking pipes, wood windows, cracked plaster, you name it.

Looks like latest updates was done in sixties and after the house was just milked to the bones.

--161.69.xxx.xx

Certificate of Occupancy (by Luba [NY]) Posted on: Jul 18, 2017 1:13 PM
Message:

Robert J., you was able to put lien on a property because they was lying or because you was in contract? --161.69.xxx.xx

Certificate of Occupancy (by Robert,Ontario,Can [ON]) Posted on: Jul 18, 2017 3:29 PM
Message:

If the rent is 40 to 50 per cent below the market then there will not be funds to bring the rental units up to decent standards. Will require vacant possession along with a vendor take back mortgage for a period of up to two years. Unit by unit will have to be completely renovated which is going to involve a lot of work. New plumbing, flooring, bathroom renovation, kitchens will all have to redone. The windows, roof, structural may also require work. The tenants will not be interested in paying market even though all the rental units are brought up to decent standards. After all the renovation work is done then it will possible to get a certificate of Occupancy. This may involve getting permits when work is done which is going to be expensive. --74.220.xxx.xx

Certificate of Occupancy (by Luba [NY]) Posted on: Jul 18, 2017 5:22 PM
Message:

What does it mean " a vendor take back mortgage"?

Current owners don't have a mortgage.

My future mortgage company need to wait for a couple of years? --69.120.xxx.xxx

Certificate of Occupancy (by JR [ME]) Posted on: Jul 18, 2017 5:42 PM
Message:

Luba, you say the apartment building is run down, with scads of deferred maintenance, numerous code violations, needs a certificate of occupancy, which will be problematic; for which the sellers want "big money" but refuse to fix anything or carry owner finance?

Is this the best deal you can find?

Robert J., I love your "stories". Just what kind of a lien can you place on a property that you don't own, haven't done work on, or have the real owner owe you any real money? I have never heard of a "liars lien" before. Do tell us all about it. --98.13.xx.x

Certificate of Occupancy (by Luba [NY]) Posted on: Jul 18, 2017 6:09 PM
Message:

JR, believe it or not, but it is the best deal I can get.

This 5 unit building cost a little bit more than 2 family in good shape. --69.120.xxx.xxx

Certificate of Occupancy (by Ken [NY]) Posted on: Jul 18, 2017 6:26 PM
Message:

Get a good attorney,i don't think they can stop a closing from happening because you didn't get a certificate of Occupancy.If I was closer I would consider buying there just for the fight --24.25.xxx.xxx

Certificate of Occupancy (by BRAD 20,000 [IN]) Posted on: Jul 18, 2017 6:27 PM
Message:

Luba,

This seems odd. How can anyone sell a home that needs some repairs? I think this woudl add to blight - properties sit because they cannot be repaired.

Talk to the inspectors and ask about this property specifically. I want them to make a list of items to repair in order to pass. With that list I can get quotes.

My approach would be "Help me clean up this building so the neighborhood looks better."

Do all 5 units need to pass before the sale? Maybe one unit?

BRAD --68.50.xx.xxx

Certificate of Occupancy (by Luba [NY]) Posted on: Jul 18, 2017 6:37 PM
Message:

Ken, if it will be closer, I will buy in your area

Some properties selling "cash only", but I just don't have half a million in cash.

I am trying to brainstorm workable ideas.

--69.120.xxx.xxx

Certificate of Occupancy (by Ed [PA]) Posted on: Jul 18, 2017 7:03 PM
Message:

Lot of small towns pass ordinances like this. You could get a lawyer to fight to get the law declared illegal but a lot of money from your pocket. I've bought on a land contract and not recorded the deed to get around these kind of ordinances. You can put a percentage down with a few payments for 12 to 24 months or as long as you think it will take to bring the building up to code. At the end of your agreement you do a cash out refi with a bank mortgage to payoff the seller. Record the deed at the cash out refi, the municipality doesn't know it's sold until the deed is recorded. I owned one house 5 years before recording the deed. --96.236.xxx.xxx

Certificate of Occupancy (by Robert,Ontario,Can [ON]) Posted on: Jul 18, 2017 7:12 PM
Message:

A vendor take back mortgage is where the owner or vendor is giving you the mortgage where payments are made to the owner or vendor for the period of the mortgage. This type of mortgage is common here where it allows more difficult properties to sell which are not easily cash flowing. After the property is brought into shape then starts to cash flow a person goes to the bank or other financial institution for a conventional mortgage. Usually the interest rate is 6 per cent on vendor take backs. If the town or city has a high vacancy rate then would steer clear of that type of property. Usually for first few years a lot of money will have to be spent bringing up all the rental units along with making other repairs. The only to minimize costs is by doing most of the work yourself along with shopping at the Habitat for Humanity restores for building materials along with viewing videos on You Tube on how to do things. One will have acquire many skills. So this is a double edge sword up and down. So first one has to determine what needs to be done to get the certificate of occupancy or can that be done later once all the rental units are renovated. There are not many buyers who are willing to take on projects like that. --74.220.xxx.xxx

Certificate of Occupancy (by Vee [OH]) Posted on: Jul 19, 2017 5:16 AM
Message:

This sounds like a 3500bux house, my kind of deal but start bidding at 2200 and go up in 40bux increments. --76.188.xxx.xx

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Certificate of Occupancy

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