No meters in newly renovated house

That’s great. Smart to have a per diem penalty. But sounds like the resolution was no drama which is the best kind of ending.

workisfun

in General Discussion 8 years and 6 months ago

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michaelsaur67 | 8 years and 7 months ago

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We are buying a 2-family-house in Ocean Hill. It is a rehab, but last minute, seller tells us there are no gas and electrical meters installed yet. He wants to close and offers $ 20,000 for this to be completed within 10 days. We are unsure how serious this is, and what the worst possible outcome could be. Does anyone has experience with that sort of thing?

michaelsaur67 | 8 years and 7 months ago

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Correction. He offers $ 20,000 in escrow.

robyim1 | 8 years and 7 months ago

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I had no meters when I bought my house and everything had to be completed to the utility companies statisfaction before they put the meters in. For me the gas company was more of a headache because they made us change some of the piping before I could get my meters. As for what is worst case scenario I suppose there could be many issues like open violations, liens against the house, improper installation, no permits etc. if the seller is willing to put some money in escrow maybe it’s okay. Good luck.

daveinbedstuy | 8 years and 7 months ago

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I assume this was last minute to signing the contract, not closing. Get a good inspector in there to assess what it needs.

michaelsaur67 | 8 years and 7 months ago

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Yes, we have not closed. Walk-through is tomorrow and I may have to bring inspector again to assess. Thank you.

jimhillra | 8 years and 7 months ago

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Definitely get an inspector. Clearances around meters are extremely important. You could end up having to move walls if the clearances aren’t there. And there may be plumbing or electrical in those walls, or other things which would add up. I might suggest making the sale contingent upon the installation of the meters, either by owner or by you.

daveinbedstuy | 8 years and 7 months ago

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If this rehab was done by a flipper, I’d make sure the inspector is VERY thorough. In a case like this I might even want to bring in a licensed electrician and plumber.

workisfun | 8 years and 7 months ago

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And $20k is not enough. If the seller stands behinds the work (both visible and behind the walls), he/she should be willing to put more money in. Could be a can of worms. Or not. Either way, you shouldn’t have to take the risk.

slopefarm | 8 years and 7 months ago

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Don’t accept the 10-day limitation, either. You can’t guaranty Con Ed and Nat Grid will show up, install meters and have everything AOK in that time frame.

What does your contract say about how the house will be delivered? What does your lawyer say? Arguably this is material and you would be within your rights not to close, but OTOH, this has me worried about the seller and you are better protected taking care of things yourself than expecting a flipper to do it who is worried about dwindling profit margin.

I would get my arms around what actually needs to be done with no room for doubt and then if you are comfortable that you have covered for surprises or that what remains is ministerial (scheduling Con Ed), then escrow more than enough proceeds and give yourself a generous time to complete. Otherwise, flipper needs to do it before closing.

slopefarm | 8 years and 7 months ago

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I will add — and this is from experience — if what you are buying is a home renovated for closing by a flipper, then inspect the hell out of the thing before you close. Hopefully you have some specs and conditions in your contract as to the scope and quality of work, compliance with code etc. Stand on every term to the fullest or you could have real headaches after the closing and no one to turn to but yourself.

robyim1 | 8 years and 7 months ago

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I just remembered. Gas company required me to make a copy of my deed and ID just to identify that I was the owner of the house. I had to wait awhile for this process before they allowed me to make an appointment for the meters. After that the meter guy inspected every gas connection in the house before installing the meters. He mentioned they were more strict due to recent gas related explosions in NYC.

Also the people are right about code. Even a good inspector probably doesn’t know every code since it’s two different trades. Ideally, you need a licensed electrician and plumber to tell you if everything was done up to code. If not and something needs to be changed it’s $$. Con Ed was easier but they tried to hit me up for unpaid bills even though I wasn’t the owner back then.

resident2 | 8 years and 7 months ago

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Did the Flipper get permits for the plumbing & electrical? Are all the permits signed off and cleared?
If they did not get permits for the work, how long was the building vacant before they started work on it? It is very strange that there are no metered and without some information as to why there are no meters it is difficult to say how easy or difficult it may be to get the meters installed.

michaelsaur67 | 8 years and 7 months ago

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I have not seen the permits for plumbing and electrical, but will demand to see them before closing.

nick521 | 8 years and 7 months ago

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Check the DoB website to see if they pulled any permits and if so, for what work…

slopefarm | 8 years and 7 months ago

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And if they pulled permits, you want the job signed off and closed with DOB before you close.

slopefarm | 8 years and 7 months ago

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And if they did not pull permits, you want to figure out if they were required to. And if they were required to file the job and pull permits, but did not. you need to stop and think a bit about your next move. But I am getting ahead of the story here.

michaelsaur67 | 8 years and 7 months ago

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Hi slopefarm, Thank you. I will inspect tomorrow during walk-through and see what the inspector says and see what the permit situation is. My guess is they did not pull the necessary permits, at least according to DOB. I appreciate your input.

daveinbedstuy | 8 years and 7 months ago

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If permits weren’t pulled, this is going to be a much bigger problem getting meters installed.

slopefarm | 8 years and 7 months ago

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Good luck with the inspection. Prime your inspector in advance about the issues that concern you. Ask for a detailed report on metering issues, mechanicals, structural work, workmanship, etc.