Hi Nick, I see you’re a local resident in my area!

I would definitely have to agree with some of my colleagues here.

Typically in many cases but not all, the “buyer” is responsible for obtaining the Certificate of Occupancy (C.O), and for any lender required repairs in addition to general repairs. It is highly recommended in situations like this, that you make yourself aware of what condition the property is in. If you feel the home will need a substantial amount of work, it is advisable to have a home inspection done prior to making an offer.

It is also within your right to hire a licensed NJ real estate attorney to further guide you through the process. This individual will work with you and coordinate their efforts with your realtor to ensure the transaction goes smoothly. In South Jersey we are accustomed to not working with attorneys for real estate transactions as in Northern NJ but in situations like these I would recommend using one. The price for using one in the grand scheme of things will give you piece of mind.


John Agnello
Realtor®
Long & Foster, Real Estate Inc.
(609) 320-6700 –Cell
(856) 856-2338 –Office

Wed Apr 23 2008, 20:39

When you are in this kind of legal terrritory on a purchase, the best advice is to hire a competent, experienced real estate attorney to guide you through all the legal issues so that there are no surprises. You have raised many complex issues and you need a good attorney. If you need some names, contact me and I'll send you some attorney's names.

Thu Apr 17 2008, 05:09

Nick-
I wish I saw your post earlier.
1. The inground oil tank-I beleive it is the present homeowners issue and I am almost 100% certain that this must be removed BEFORE the sale of the house. On my bloghttp:// www.camdencountyrealestatenews.com I have posted something you may find interesting about programs for inground oil tank removal. YOUR REALTOR should advise you about buying a home with an inground tank. There may not be any issues at all, just be cautious.
2. Bad Heater etc...thats the way they are selling the house, that's the way you are buying it. Everything is a negotiation, but this seems like a hardship case.
3. I would never pay someone's liens, you never know whats hidden..this is what title insurance is for...

if i can help you further, just give me a call.

Wed Mar 26 2008, 08:34

Nick,

You must have a valid reason to lien a property and subsequently take ownership through foreclosure. You can't just lien property without cause.

At the time of a sale the title to the property must be cleared of all encumbrances (liens) in order to transfer to a new buyer (you) and be insured. If you are borrowing money to purchase the property your lender will require that the title be insured - but if you are paying cash, you aren't required to purchase title insurance - your call but in this case, I would purchase it no matter what.

Having said that, the clarity of the title has nothing to do with the condition of the property.

You would need an inspection to understand the state of disrepair of the property and any estimates to repair items that need attention. Some lenders and some insurance underwriters care about the condition of a property before they will lend or underwrite. Again, if you're paying cash, you can carry your own risks and chose not to get homeowners insurance but I wouldn't suggest it.

As for "satisfying all money's owed on the house", yes, to pass title, all liens would have to be paid off and that usually comes from the seller's proceeds. But in a short sale, the seller has no proceeds - so the lender may agree to take some reduction to the debt owed on the property as a purchase price - but they may require you to cover any other outstanding debts/liens.

Good luck, hope this helps.

Fri Sep 21 2007, 10:33

Hello Nick. Your question calls for several answers. First of all, in a short sale, the seller asks the lender(s) to take less than what is owed on the property. That's why it's called short sale. One of the things the lenders take into consideration when making a decision is the seller's overall financial situation. While the seller does not have to be insolvent, the seller cannot offer to pay for things such as repairs, closing costs, removal of hazardous waste, etc. Since the seller does not have money to bring to the table, it is possible that the short sale will only be successful if you agree as part of the contract to pay for certain outstanding house related debts such as tax liens, mechanic's liens. In the end, the closing agent or attorney cannot settle the sale or close escrow unless there is enough money brought to the table to satisfy all the liens.

I am not sure that I understand your last question regarding you putting a lien on the house and have ownership of it because of the lien. I am not sure why you'd be able to put a lien on the house and how you'd be able to get ownership of the hosue because of the lien. Can you explain your thinking.

Lastly, but not least. The undergroung oil tank would concern me as I don't think you can just dig it up yourself. An inground oil tank is considered hazardous waste because of the potential of discovering an oil leak. If an oil leak is discovered, you as the new owner can be responsible for the hazardous waste cleanup. I would under no circumstances agree to dig up the oil tank before the close of escrow and I would be extremely cautious about buying a property that has an inground oil tank without knowing for sure that there's no leak. You said you'd have to pay to dig up the oil tank if necessary. Who will determine whether it's necessary?

Fri Sep 21 2007, 10:33