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December 28, 2008
House's title not clear, can the bank close
Hi
I'm about to buy a single family house in Landmark area. The seller had build a deck before the house become a landmark without a permit. And the house has violation case open. The seller give me some discount and I have to take care of violation myself.
The deck can't be legalize because it's Special Planned Community Preservation District restrictions since 1974. And I don't want to remove the deck. Because if I remove it, I can't put it back.
Then the title of the house will not be clear. I talked to the bank, she said they can't close if the title is not clear. But my real estate broker recommended 1 mortgage broker to me and he said he can close even the title of the house is not clear.
Is this ever happen to anyone?
I don't want the house if the deck can't stay.
Please help me.
Thank you.
Comments
i think thats why you have title insurance. in case its a cloudy title.
Posted by: Ysabelle at December 28, 2008 12:39 AM
Sure, but they wont write title insurance if theres an open issue.
Posted by: slick at December 28, 2008 3:41 AM
Call ny state insurance and ask them about it. They regulate the industry.
Posted by: Ysabelle at December 28, 2008 11:39 AM
Pay a lawyer for a legal opinion. You should call the NY state insurance office, but do you want to gamble that the person on the phone has no clue what they are talking about? It is important, pay a lawyer. If you don't you might be very sorry.
Posted by: actually works in finance at December 28, 2008 7:14 PM
why does OP sound to me like Latke Gravis?
Posted by: bricktop at December 28, 2008 8:18 PM
I'm usually the first to say "don't worry 'bout it" with this stuff. But one general word of caution - when you say "your" broker, do you mean the seller's broker? If so, I'd suggest avoiding their recommendation on mortgage broker. Your lawyer should be able to give you a picture of the real risks associated with what you're looking to do. And if not, talk to a lawyer that can.
Good luck.
Posted by: Johnny at December 29, 2008 9:30 AM
Yes, I mean a seller's broker but she also my broker, too. I know that in this kind of economy, she don't make much money right now. She pushing me so hard, and tried to tell me that everything is easy. My lawyer didn't help much. So many thing I have to find out by myself and I'm so confused.
Help!!!!!!
Posted by: aehok at December 29, 2008 11:47 AM
In New York the broker works for the Seller not the buyer. Your lawyer is being paid to work for you! Maybe you need a new lawyer. ??
Posted by: SenatorStreet at December 29, 2008 12:21 PM
Would it help to call NYC Landmarks? sometimes they allow the owner to put money into an escrow account as security that they will correct violations or fix a problem. that might help you temporarily commit to resolution now, but actually do the work later when you have more time to realize a solution...
Posted by: rainmaker at December 29, 2008 12:40 PM
Did the broker recommend your lawyer? That wouldn't be in your interest. If the broker's pushing hard, and the lawyer's not helping, you need to find someone else to represent you on both counts. If you don't want the building without the deck, then you almost certainly don't want this building. Find out whether this deck is illegal because it was built without permits and doesn't meet code, or whether there's even more to the story. Find out whether LPC and DOB would approve a deck built to code. From what you described, there's very little chance the existing deck will ever be approved.
Posted by: vinca at December 29, 2008 12:53 PM
Its not the title that is cloudy! The title is the issue concerning the ownership of the house. You are talking about the legality of a deck. The title company can easily exclude guaranteeing that the deck is legal without clouding the title ownership issue at all. whether the bank will accept this an an exception to the title insurance policy is really totally up to the bank.
If its illegal and can't be legalized it will be the subject of a violation(as would tear it down and then rebuilding it later)....you know how many illegal decks are in NY City?
Posted by: smeyer418 at December 29, 2008 5:57 PM
Yes, I can tear it down and rebuild an illegal deck again later, but now it's landmark. If someone from DOB or LPC people come back and check it. What going to happen to me?
Posted by: aehok at December 29, 2008 6:15 PM
There won't be any problem with title however the violation will simply be transferred to you as the new property owner and you will be the one receiving the fines for the violation.
Posted by: momo284 at December 29, 2008 7:33 PM
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