S: Yes it is done. How common is it? I really don't have statistics but I'd say all too often. Here's why:

Your zip code indicates a Trenton address. You may or may not be buying in Trenton but Trenton and the surrounding townships have much more than fire and CO inspections. Trenton, for example, has, in addition to the physical inspection itself, certification requirements for Roof, Chimney and Heater. These certifications are also reasonably expensive.

The CO inspection and its repairs are, by ordinance, the responsibility of the SELLER. SOME (but not all) municipalities allow the buyer to "assume" the responsibility for the repairs, more often in the case of developers buying rundown properties than for the buyer-resident. If the assumption is allowed, there is usually a ban on residency until the property is brought into compliance with the housing code. There is also a time limit for this activity, which can, at times, be extended, especially if some progress is shown.

Another useful fact is that some municipalities will inspect before any sales contract is in place and the inspection and CO, if issued, is good for a period, sometimes six months. This allows the buyer to assess just how many repairs are need FOR THE CO (there may be thousands of dollars in additional repairs not spelled out) and how much the CO repairs will cost before they make an offer. Other municipalities insist that they will only inspect AFTER a contract is in place.

Now, in my opinion, the seller is responsible for the repairs and "capping" them is not helpful to their selling effort in the long run. In most cases, I'd counsel my sellers not to do so, unless, A) they were already in financial distress, or B) They were accepting a very low bid.

On the other hand, I've seen many developer/investors accept the CO (and any other) repairs as part of the revitalization process. Most repossessed properties, sold by the mortgage company, are sold only as-is with CO repairs the responsibility of the buyer, (Including the certifications.)

Hope this helps.

Bill Holt

yes just as they will also cap any expenses such as Title/survey attorney costs if they can not transfer title to you. Doesnt mean they wont actually spend more or credit for more, it just puts a limit on an unknown liability.

Hi S, to amplify response of prior poster, what is required for a CO is set by the township, but generally it does refer to an inspection by the town to be sure that the home is in compliance with smoke detector, carbon monoxide detector, and fire extinguisher requirements. The specifications can be secured from the township and are often available at their website. It is generally the responsibility of the seller to get the CO prior to close.

I've seen boilerplate attorney review language refer to CO repairs - you can see from the description that it may or may not actually tie to inspection repairs. So to reply to the question as to whether it is common for a seller to establish a cap on repairs, yes, it is common to see that.

My advice is always this - align yourself with good resources - agent, attorney, inspector and so on - you'll be well served.

Good luck to you!
Best,
Jeannie Feenick
"Unwavering Commitment to Service"
Search the MLS at http://www.feenick.com

Hello
Yes, it is common in NJ. The C/O requirements can change from town to town. I some case's in can mean a whole house inspection and others just smoke/ carbon monoxide detectors and a fire extinguisher.
Hope this helps you in understanding why there might be a cap imposed by the seller.
Regards
Ronni Temple
ReSales & Investment Rlty
Haddonfield NJ 08033 http://www.resalesrlty.com

Hello
Yes, it is common in NJ. The C/O requirements can change from town to town. I some case's in can mean a whole house inspection and others just smoke/ carbon monoxide detectors and a fire extinguisher.
Hope this helps you in understanding why there might be a cap imposed by the seller.
Regards
Ronni Temple
ReSales & Investment Rlty
Haddonfield NJ 08033 http://www.resalesrlty.com

Yes, this is very common in NJ.

Hope that helps
Joe Montenigro
Broker Owner, REMAX Home Team
serving Gloucester Twp and Southern NJ
http://hometeamNJ.com
http://joemonte.vflyer.com http://www.facebook.com/joemontenigro