Open permit means, the work is not finalized and there is not a fInal permit filed
With the Planning and Building dept. You undertake liability of finishing the Open permit items
After the purchase.
Since, it is being renovated there might one or more open permits. If the work is done to code it
Will be easy to complete and get the Final permit, if sadly the work is sub standard then after the close you
Will have to bring it to code.
Clearly you do need a Contractor to go out with you to the property and give you an idea and an estimate as
To what it will take in terms of time and costs.
As an investor this is the kind of deal I look for. Many buyers are afraid to tackle a job like this. I take my contractor and inspector through the house. My contractor gives me an estimate on repair / renovation according to my specifications. For me many of these houses have been a very good deal. On the homes we buy, fix, and sell there is typically a 20% or greater return.
The others had very good advice. I would add that for a short sale to be successful is depends on the listing agent. Sort sales are much more difficult and if the listing agent is not properly trained the chances of success are pretty low.
It might be a good idea if you are not represented to choose a buyerâ€™s agent that is highly trained in short sales so the buyerâ€™s agent can make suggestions to the listing agent for a successful process and approval by the other parties.
The open permit is a different issue but if the listing agent canâ€™t get the other parties to approve the short sale the point is mute.
The website listed has very complete information on short sales click on Behind On Your Mortgage Need a Financial Life Line? This will take you to a short sale website.
I specialize in short sales so if I can help please call me.
Bill Dobbins 612-719-3236
BUT...since it's a short sale, that indicates that they ran into a hardship and can no longer afford to complete the renovation...therefore, they cannot "Close the permit" with the city. So, anyone purchasing the home will be required to complete the renovation and "Close the permit" themselves.
The answer to your question, "Do you think it is OK to buy?" depends on a lot...actually, A LOT more! Hopefully you have a trusted Real Estate professional, a good Home Inspector, a qualified Lender and Title Company who can work with you and help you better answer that question.
Take care and don't hesitate to contact us directly if you have any additional questions.
Annie and Bob Pacieznik "a name in real estate you might not be able to pronounce but can certainly trust" http://annieandbob.com 952-334-8225
It is the responsibility of the property owner to make sure all permits that are acquired by contractors are closed-out at the end of the job.. In addition to paying the fine, the property owner will be responsible for paying additional permit fees and possibly hiring and paying another contractor to renew the expired permit, if the original contractor is no longer in business.
Buyer beware! Before you purchase a property, make sure there are no open permits on the property. You as the new owner will be held responsible for any open permits that were issued to the previous owner's contractors.
Since this property is a short sale you will also need clarification as to who is responsible for any open permits.