Violations on Property I No Longer Own

If I sell a property with defaulted violations, can DOB (or DOF) go after me for the penalties even after I’ve sold it, or can they only go after the new owner?

bk11233

in General Discussion 8 years and 7 months ago

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petercornol | 8 years and 7 months ago

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How much are the violations? I am a real estate attorney and a broker, and generally in the contract of sale is a provision that allows the seller to use the contract deposit to clear encumbrances to title. Otherwise, as has been stated already, the title company will not insure clean title, and the lenders won’t lend. So unless you have an all cash deal already in place, you are severely restricting your potential market. And even an all cash purchaser is likely to want to negotiate the cost of clearing those liens out of the purchase price. Happy to discuss this further, website is www.gerardlawfirm.com for contact info.

petercornol | 8 years and 7 months ago

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How much are the violations? I am a real estate attorney and a broker, and generally in the contract of sale is a provision that allows the seller to use the contract deposit to clear encumbrances to title. Otherwise, as has been stated already, the title company will not insure clean title, and the lenders won’t lend. So unless you have an all cash deal already in place, you are severely restricting your potential market. And even an all cash purchaser is likely to want to negotiate the cost of clearing those liens out of the purchase price. Happy to discuss this further, website is www.gerardlawfirm.com for contact info.

joseph.ditta | 8 years and 7 months ago

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This is a common misconception. ECB violations, once docketed (meaning they can be treated as judgments) are valid as against the named respondent in personam and attach to the property in rem. DOF can go after the named respondent personally , even after the property is sold to a subsequent purchaser. The violation is ALSO a lien on the property. Typically, banks won’t lend on property with liens as the mortgage won’t be the primary lien. A hard money loan or cash purchase can be used to work around these liens.

rana-foroohar | 8 years and 7 months ago

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The new owner – they track with the property, not the person.

rana-foroohar | 8 years and 7 months ago

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The new owner – they track with the property, not the person.

slopefarm | 8 years and 7 months ago

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Three were a bunch of open violations and defaults on our house when we were buying. We held back in escrow an amount the title company agreed was sufficient to clear everything and took care of it ourselves out of the escrow funds.

But yeah, all of the violations will show up in the title search and they must be addressed in some way to satisfaction of buyer, title insurer, lender etc. before property can close.

daveinbedstuy | 8 years and 7 months ago

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DOB violations & fines are attached to the property. Unless it’s a cash deal you won’t be able to sell it. A bank won’t grant a mortgage on it and, depending upon the violations, there may be title issues.