Updated Certificate of Occupancy
What is involved in closing/updating a Certificate of Occupancy? We are well into the process of getting a mortgage and have already had the bank send someone to do an appraisal. Our lawyer just got the title search back and there is an exception. The sellers had gotten a permit to build an “enclosed porch”…
What is involved in closing/updating a Certificate of Occupancy? We are well into the process of getting a mortgage and have already had the bank send someone to do an appraisal. Our lawyer just got the title search back and there is an exception. The sellers had gotten a permit to build an “enclosed porch” in 2001 there was never “signed” off – I’m guessing this means inspected at completion and thus an updated COO was never issued. (The enclosed porch is really more like an addition, complete with windows, sliding doors and heating.) Our mortgage lock is only good for 60days, what impact will this have in the process? How serious is this and how hard and quickly can it be rectified?
in the same vein, would the owner of a three family house used as a two family need to change/update their CO to reflect its use as a 2-family? what if they convert to one family. it seems like under-utilizing wouldn’t be a problem – the rules guard against over-utilization – but i wonder if dept of buildings would think the same way.
I wouldn’t call this a nightmare, I would call it a headache (though not a small one). Your bigger headache sounds like your own attorney. Can you or can’t you get a mortgage given the current situation? If not, the seller will clearly want to cure this, or run into the same problem with the next potential buyer. Speak with the seller and find out what information they still have: the original plans, permits, name of architect, expediter and contractor. Speak to an expediter and find out whether it might be possible to get a Letter of No Objection from the DOB (which will not resolve the CO issue, but may quiet it for a while). Were any violations issued (because as new owner, you will inherit them and their penalties, if they were). From what I understand from your post, there’s plenty of missing information you need to obtain before you can figure out how to proceed.
If the addition is “legal” and permitted it has to be completed “signed off” at the DOB, you just dont want to do it – its not your problem and a headache. You could take it on and it would probably work itself out with time and money. Im no expert but my thought is that the DOB issues are seperate and distinct from title searches and any deed restrictions or liens. A friend of mine bought a house with an illegal partially completed deck on the back as attractive as the deck was his lawyer told him to have it removed prior to closing, dont know why exactly, but I guess it was simply a liability. They filed and rebuilt the deck correctly afterwards. The bottom line I think is that its not a quick fix
Sam, I am not sure how we cannot go there. A bank will not issue a mortgage without a clear title, correct?
All, I had no idea this would be such a nightmare! What are our alternatives? Can the seller simple remove the addition and we can negotiate a price reduction? Will that clear the title? I guess we don’t have a very good lawyer. We had shown him printouts of the DoB filings where we had seen for ourselves that there did not seem to be a close out for the final inspection. I had wanted to include a contingency that we would get our mortgage applications costs back if we could not get one through no fault of our own or credentials and he disuaded us from doing that . Though he saw the DoB flags he said he could ascertain anything until the title search and that was that. Anyways I thought since there was a permit to do thecwork that the rest of this might not be as bad as starting from scratch but it certainly doesn’t sound like it.
Is this something you could have gotten a contingency for? Sucks. I sympathize.
***Bid half off peak comps***
Pretty much as JP2 described. If the use of the property has been amended (through construction of the enclosed porch), then an amended CO is required. From what you’ve written, title is not clear and you will not be able to obtain a mortgage. If you really want the property, you should discuss with your attorney an escrow account, concessions on time and costs involved in obtaining the amended CO, some way of addressing your mortgage lock/rate, etc.—but none of those will solve the CO and title problem. You can start by speaking with an expediter. Scott Schnall on Atlantic Ave. has been recommended on this site many times, for good reason. Whether through the DOB and/or through the original architect, your first big task or stumbling block will be finding original stamped and perforated approval of plans for the porch. In all likelihood, in order to close out the CO, the current owners will need to file an Alt. Type I, No Work application, which will involve architects, drawings, and lots of time and money.
it’s a nightmare -don’t go there unless you have to. And I can’t imagine why you would have to.
This is probably more complicated than you want to hear. Whether they even filed for a new C of O os the first thing to determine. Closing the application out is another issue that may be seperate or related depending on the type of filing. I will tell you it would probably be a miracle if you could close out the application in two months, old architect or whomever may have to be superceded, lots of paperwork, were propor inspections performed – can of worms. A Lawyer by himself cannot solve this problem unless it becomes a negotiating tactic and you del with the whole mess after closing. Get all the paperwork prooving its legit and get some to review it architect/expediter to tell you what the hell you have got. Also go online to the DOB BIS website and search by address if you havent allready. Will be basically unintelligable but maybe helpful
Your lawyer should be able to work out these details on the sign off and the closing. If not, he’s not a good real estate lawyer. I may be wrong but I don’t think this type of work would have any effect or change the CO.