DOB ECB Lien Violation - Retaining wall

We closed on a house with a whole bunch of ECB violations with a mortgage. We insisted that we be able to hold back some of the purchase price in escrow to cover the cost of remedying the issues, paying the fines and clearing the violations. We made sure there was substantial headroom in the escrow for unanticipated costs. then we took care of the issues ourselves after closing and drew on the escrow fund to cover costs, and released the balance of the escrow when the violations were all cleared.

slopefarm

in General Discussion 8 years and 4 months ago

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namahs | 8 years and 4 months ago

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We are looking to buy a potential property and noticed that there is a DOB ECB Lien violation opened since 2008 on the property. We brought the issue up with the seller agent and they said maybe the seller resolved the issue and DOB did not record the fix. They will get back to us. Anyone dealt with an ECB Lien violation? I assume this stops the property from being transferred?

The violation is their rear wall of property, their neighbor land seems to be higher so there is a retaining wall but it looks to be compromised. Should we avoid this type of property due to the potential issues with the retaining wall?

“FAILURE TO MAINTAIN EXTERIOR RETAINING WALL-HAZARDOUS. DEFECTS NOTED:AT REAR YARD OF PROPERTY SECTION OF RETAINING CONCRETE WLL APPROX: 8 FEET HEIGHT SECTION OF RETAINING CONCRETE CRACKING AT VARIOUS LOCATIONS”
[32299305613_918566af6b_k](//muut.com/u/brownstoner/s3/:brownstoner:RMzl:32299305613_918566af6b_k.jpg.jpg)

daveinbedstuy | 8 years and 4 months ago

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Get a knowledgable Brooklyn real estate attorney. You won’t get a mortgage if they see an open violation. The issue with the retaining wall should be part of the inspection process.

Arkady | 8 years and 4 months ago

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You can try to track down the paperwork. I had a similar thing happen when I cleared 2 Hazardous Violations but both checks were credited to just one of them even though that meant it had been overpaid while the other one remained on the books incorrectly. Get the violation number & a copy of the check that was written to pay for it. Then DOB can track it.

resident2 | 8 years and 4 months ago

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It always amazes me how “Brokers” take listings and do not do a lien/violation check ahead of time and discuss it with their client, the seller as to what the situation is, what can be represented etc. How the transaction is going go to deal with it.
If the seller wants to sell it As-Is with the ECB violation it should be disclosed up front. If the seller has the paperwork etc to clear it, it should have been done before showing it for sale.
There are some Banks that will close on it, if this is the only issue, depending on how big of a mortgage (not a 90% loan) etc. you need.
Get an estimate from a qualified contractor, add on for expediter fees to do the permit and clearing work etc. The Bank will want that amount held in Escrow to insure that the work will get done. Do not ask the seller to do it, they would have done by now if they were capable. But also it is not in their interest to do the best job.

danielherbst | 8 years and 4 months ago

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I don’t think that an ECB violation would present problems with transferring the deed unless the bank would have a problem with it. Plenty of deals are done with ECB and DOB violations still on the property.
Your buyers agent should be able to do some research for you and see if the ECB has been cleared off. The burden of proof would be on the seller to prove that they dealt with the issue.
It sounds like a very large retaining wall if it is 8 ft tall. That would be my concern. A big job like that may cost you well over what you would guess. Follow resident2’s advice and get a quote from a contractor on price and speak with an expeditor.
Also, make sure to be clear about who is responsible for paying for the violation. If the sellers can, they will try to make it your problem, try to negotiate that they will pay the fines.

alterboy | 8 years and 4 months ago

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Properties are bought and sold with ECB violations all the time. The main issue though is not the ability to buy or sell but the costs of resolving or fixing the violation. After acquisition, you will be responsible for all of the costs and clearing the violation unless your seller agrees to take care of it prior to the transfer or if you make sure the seller leaves enough in escrow so that, if you are forced to, you can use the money to clear the violation yourself. No need to track down paper work because it is all about making sure you are covered in the contract of sale. Do not accept an as-is purchase contract.