Home Buying in Marlboro>Question Details

Natalie, Home Buyer in 11210

If a house is a foreclosure, who is responsible to get the CO on the house?

Asked by Natalie, 11210 Thu Feb 11, 2010

House belongs to Fannie Mae and does not have a CO or COO. We were ready to close but missing the CO. Who is responsible to get the CO / COO on the house the Seller or the Purchaser?

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To obtain the C of O it may be as simple as filing for a permit, having the town inspect for code violations then issuing a C of O if none appear. Even if there are problems such as a missing GFIs or insufficient insulation it can be remedied and the town would come back and reinspect and issue the C of O. For a few dollars you may recoup thousands.

A bigger problem may occur when an addition was put up without permits and that addition happens to not meet specific zoning codes. The seller would usually file for a variance and that could take a long process. In this case the seller is the bank. Are they going to lend you money for a home that is lacking a c of o?

You really need to specify why it's missing a c of o because are you going to take on that responsibility of having it fixed? REO properties are generally sold "as is" meaning that the bank will not be responsible for getting anything done and that is reflected in the price. Your agent can attempt to negotiate on your behalf but honestly you'll probably need to assume the risk.

I'd call the town inspector to see if he can shed some light on the reason for the missing c of o.
0 votes Thank Flag Link Thu Feb 11, 2010
Generally, in most situations, it is the seller's responsibility to provide clear title. However, it is always best to consult and attorney in your area that specializes in real estate.
0 votes Thank Flag Link Thu Feb 11, 2010
Natalie, I do not believe that Dp2's advice is appropriate for NY. The problem is that on a purchase, it is normally the seller's responsibility to provide clear title, which includes all CO's. Is there a contract of sale? If so, review that to see what it says about CO's. Are you taking out an FHA loan? If so, you would need all CO's. If, however, you are taking out a conventional loan, you can use a lender who does not require Co's.
0 votes Thank Flag Link Thu Feb 11, 2010
The buyer is responsible to get the CoO. Besides, even if the seller had it, or were to get it, then it still wouldn't transfer in certain areas. That's why it's also always best for the buyer to handle this; plus, doing this will inform you of any potential POS inspections.
0 votes Thank Flag Link Thu Feb 11, 2010
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