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adanna285
LIF Zygote
Member since 11/17 4 total posts
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New Home Buyer / C/O Questions
Greetings all,
My husband and I are recently married and looking to purchase a home in Babylon. The entire process has been extremely frustrating. After many, many, many, months of looking we fell in love with a home.
The seller is due to close on another home and really needs to close ASAP (we are due to close in a little under 30 days since she wants a fast closing). We asked the agent if the home has all its proper permits / C/Os since we do not want any surprises later (first time home owners new to Long Island).
We were told "yes, the home is completely legal." So far it seems there is a C/O regarding the finished basement which has been provided to our lawyer. However, the house has a HUGE deck and pool and we have not received anything for those items. I am starting to believe the seller wasn't completely honest about the permits for the deck and pool.
Through this process, we have noticed most of the homes we looked at had structures without permits (mostly apartments and garage conversions). It seems quite a few homes on Long Island have had work done without permits.
My question. Has anyone purchased a home without proper permits? What were the consequences? Should we walk away and lose the money we have already spent (appraisal ordered, inspection done, lawyer paid, survey requested, ect). We REALLY love the home. Our agent basically acts like its no big deal and says most of the homes she sells has C/O problems : /
Any advice or personal experiences are sincerely appreciated.
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Posted 11/2/17 9:38 AM  |
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jamnmore
LIF Adult
Member since 6/16 989 total posts
Name:
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New Home Buyer / C/O Questions
It is a matter of personal preference. You may have problems with the mortgage process if there are structures/improvements that do not have a C/O. It depends on the type of mortgage from what I understand.
My home had a 2nd kitchen with no c/o. I did not have any problems with the process. It is in fact done all the time. In the future, if you sell you may have problems but you may not. If you are going to be in the home forever, you will probably never have a problem.
I know people who have in ground pools, decks and full covered front porches all without a C/O and have zero problems. Does it mean they never will, no. It will only be a problem if you sell or if you decide to do a major improvement and need town approval.
That's my take on it, I could be wrong.
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| Posted 11/2/17 10:26 AM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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New Home Buyer / C/O Questions
i personally wouldn't have a problem with no C/O for a deck and pool. I care more about living structures. My current house didn't have a C/O for the deck. I put in my contract that if the bank required it, the seller would have to pay for the permit. But the bank never asked for it.
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| Posted 11/2/17 10:56 AM |
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loveus
LIF Adolescent
Member since 9/13 684 total posts
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New Home Buyer / C/O Questions
Personally I like everything in order. I would want the proper permits so there aren't any headaches in the future. Have them apply or hire an expediator for permits. You can still close and have money put in escrow so there aren't any delays.
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| Posted 11/2/17 1:03 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
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Re: New Home Buyer / C/O Questions
Posted by loveus
Personally I like everything in order. I would want the proper permits so there aren't any headaches in the future. Have them apply or hire an expediator for permits. You can still close and have money put in escrow so there aren't any delays.
If you ask for the sellers to hire an expediter, there's a good chance they will tell you that they won't and they will move on to the next buyer. If you love the home, I wouldn't walk away from the deal because of no CO for a pool and deck. As long as you can still get your mortgage, I would continue to go forward
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| Posted 11/2/17 1:58 PM |
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New Home Buyer / C/O Questions
It's very common on Long Island for pools, decks, sheds, basements, etc. to not have a CO. Many people don't legalize things until they're ready to sell or until the town says something. Many sell without ever fully legalizing their houses. Frequently, sellers don't know what is legalized unless they take the time to go down to the town and check the building file. The Sellers may have bought it that way, or they assumed whoever they hired legalized it, or they just didn't know they had to get a permit for that particular improvment.
Many attorneys on Long Island have a standard clause in their contract of sale saying that COs are not required for decks, pools, sheds, garages, finished basements, etc., and if there is any issue with the mortgage, then seller can remove.
It likely won't be an issue at least not until you go to get a permit for something else. Then the town might notice it and require you to get a CO, but then you can just roll that application into what you're already applying for. It all depends on what you plan to do in the future, and how comfortable you are with it.
The way I would think about it is if I had to take the pool and deck down tomorrow, would I still want the house. If the answer is yes, then I think it's worth the risk. If the answer is no, then move on.
Also, in home ownership there are always going to be unknown annoyances that will come up. We made sure the COs were correct for our first house, and then afterward, we found out that the town had incorrectly issued the CO on our house, so it was invalid. We had to go through the entire permit process and pay penalties for getting the permits after the work was completed even though there was no way for us to know if was wrong until someone from the town told us it was wrong. Honestly, there was no way for to know before we bought. Buying a home is always a dice roll, and usually there is some unknown disaster lurking somewhere in the house.
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| Posted 11/2/17 3:11 PM |
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loveus
LIF Adolescent
Member since 9/13 684 total posts
Name:
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Re: New Home Buyer / C/O Questions
Posted by chilltocam
Posted by loveus
Personally I like everything in order. I would want the proper permits so there aren't any headaches in the future. Have them apply or hire an expediator for permits. You can still close and have money put in escrow so there aren't any delays.
If you ask for the sellers to hire an expediter, there's a good chance they will tell you that they won't and they will move on to the next buyer. If you love the home, I wouldn't walk away from the deal because of no CO for a pool and deck. As long as you can still get your mortgage, I would continue to go forward
I realize with today's market the buyer usually doesn't have much leverage. I said to be firm with asking since they said they have permits and they need to close asap. I'm sure the sellers would negotiate instead of starting over with new buyers.
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| Posted 11/2/17 9:19 PM |
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M514
Hi
Member since 8/10 6011 total posts
Name:
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New Home Buyer / C/O Questions
When we bought our house, the seller didn’t have a CO for the garage conversion. We were able to close and put money in escrow until the issue was resolved.
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| Posted 11/3/17 7:42 AM |
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New Home Buyer / C/O Questions
Also, if the seller is not willing to get permits, you could try to negotiate some off the price. You made the offer with the assumption that everything was legal. If you're willing to take it without the proper permits, then you could try to get the cost of those permits off the sale price.
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| Posted 11/3/17 9:03 AM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
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Re: New Home Buyer / C/O Questions
You may not be able to close without the C/O's being cleared up even if you hold $$ in escrow to resolve the issue after the closing. For example, FHA loans will not close with any open issues. For other types of mortgages, it is up to the underwriters.
Does the pool and deck show up on the exisiting survey? It's relatively easy to go down to Babylon Town Hall and get copies of the c/o's for the house if you feel like the sellers aren't complying.
You *might* be able to close without the pool/deck being legal by holding some $$ in escrow until the c/o is issued. Unfortunately, it would then become YOUR issue to resolve. A pool and deck can be a big c/o issue to resolve - I don't know if I'd buy a house without the c/o's on those items.
If the seller knew they had to close quickly, they should have done their due diligence and had all their ducks in order for a quick sale.
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| Posted 11/3/17 10:17 AM |
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nycbuslady
LIF Adult
Member since 9/15 1066 total posts
Name:
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New Home Buyer / C/O Questions
I think the issue is the price. If your offer was based on the non-compliant things being there, but then you'd potentially have to take them down, I would lower my offer.
Message edited 11/4/2017 1:54:10 PM.
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| Posted 11/4/17 1:53 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
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Re: New Home Buyer / C/O Questions
Do you have a lawyer? Your laywer would have to get all the paperwork for open COs. Then it's really up to your mortgage company. If they will let you close with open COs, it's not an issue. If they care, then the sellers would either have to close them out or let you walk.
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| Posted 11/4/17 5:23 PM |
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