Seller Refusing to Get COs?

I'm about to sign the contract on a wonderful home and the seller is refusing to get the COs for the garage and the deck. He said that the structures were there when he bought it and he doesn't feel like putting up with all the BS of applying for the permit. It's not a money thing, it's strictly a matter of principle and convenience for him. The bank will provide the financing without them.....WHAT TO DO??????

Re: Seller Refusing to Get COs?

Hmmm, I know in our case, the bank would not allow the sale to take place without the COs (these were for conversion to gas heating). It delayed our closing, but the sellers got the COs.

Check with your lawyer, but I think he will have to get the COs if he wants to sell. I would not buy without those COs anyway--you'll be responsible for getting them at some point, and if the structures are not up to code, you may have to tear them down.

Re: Seller Refusing to Get COs?

If the bank is willing to let it go (which I am surprised they are) then it is totally up to you. Realize though, at some point, you are probably going to have to get it - and depending on where you live, it may impact your taxes. You may go years and years without it being an issue, so it's your call.

Is it possible that the structures are original? You can go down to Town Hall and see the plans. We bought a dormered cape and the dormer was put on when the house was originally built, so the town already knew it, and no CO was needed.

ETA: Also, not all decks need CO's. Not sure where you are buying, but the Town of Islip does not require them if they are less than 18" off the ground.

Message edited 8/20/2008 7:33:41 PM.

Re: Seller Refusing to Get COs?

We had the same issue with the home we are purchasing. Our seller had to get the CO b/c the bank (Chase) would not issue us the loan without it. I would not purchase the house w/out it. It's going to become your headache in the long run if you try to sell the house.

Re: Seller Refusing to Get COs?

Can you ask your lawyer to get money held in escrow pending your getting the CO after closing? You'd have to go to the hassle of getting the CO but if it doesn't go through you shouldn't have to pay full price for the house. You're purchasing a house with a garage with a deck. If you have to remove them, not only would you have paid for them and no longer have them but you'd also have to pay to have them removed. I'd either insist on the CO or money held in escrow until it's resolved. You don't want to find out after the fact that you paid for something you're not keeping.

Re: Seller Refusing to Get COs?

I would check the rules of your town.ie
- how far off the property line the shed has to be
- how big of a deck needs a C.O.

I know our shed didn't have a C.O., but when we wanted to put a pool in the town called it out on the survey. we had to rip it down.

I would research it and see if it would cause you problems in the future. If you dont plan on doing any work, you might be ok.

Re: Seller Refusing to Get COs?

personally, if the bank was willing to make the loan, I'd go for it and worry about the permits later on when and if I sell....

Re: Seller Refusing to Get COs?

You should check with your lawyer, but we were told that the town can come after you for back taxes for all the years the structures were there and not taxed.

We bought our house with the stipulation that we would take care of the missing CO for a storage room over our garage. However, we bought from my ILs, so we knew that if they came after us for back taxes my ILs would pay for those. We wouldn't have bought the house from a stranger since we shouldn't have to pay their tax burden.

Re: Seller Refusing to Get COs?

Re: Seller Refusing to Get COs?

Re: Seller Refusing to Get COs?

we were in contract for a house and found out the owners refused to get the C/Os for alot of work that was done in the house (extensions, electrical upgrades, etc.). our lawyer advised us not to go ahead with it. one day when either the town finds out, or you go to sell you are responsible for getting them and it can get very expensive.

the house we just bought required a C/O for the converted garage to den. the owner was willing to do the paperwork. we held money in escrow until the C/O comes in. right now it's up to the town, but once we get the C/O the previous owner will get her money back.

IMHO it's worth it now to have the sellers get it. you also dont know if the structure is sound or built propertly. you want to do this the right way...it's a HUGE investment.

Re: Seller Refusing to Get COs?

Re: Seller Refusing to Get COs?

Judgement call. We had a situation like that for a 2nd floor deck on a high ranch. The RE agent called the deck a "gift" and said the same as yours did - the seller refused to get the CO because they bought the house without getting one.

We envisioned the worst case scenario - having to rip down the deck and rebuild, the cost of doing that, and were curious as to what other things in the house weren't on the up and up. The whole thing left a bad taste in our mouths.

We didn't counteroffer and just left it as is. The house we wound up buying had all CO's up front.

Re: Seller Refusing to Get COs?

We had a similar problem with a house we were in contract for. The sellers were giving us a really hard time about getting COs for the deck and garage conversion. We wound up backing out of the deal.