"Flipper" put the home on the market in July 2015 and "flipper" is also the realtor.
We put an offer and go to contract. Three weeks before closing the complaint is still open and three 15 year old expired permits pop up. It's two days before closing and he was only able to get rid of the complaint but not the expired permits.
My question to them was: How can you put a house on the market that nobody can buy because of the permit issues? You're a "flipper" and a realtor........ shouldn't you have known this?
Homes are sold as is.
You are not buying a shiny new home with a builder warranty.
you are buying a flip.
Hopefully you know better and just because you like it you understand,...
that paint and chaulk covers a lot.
Harold Sharpe - Broker
So Cal Homes
California Department of Real Estate Broker License # 01312992
One of the main reasons to have a professional inspector check out the home is to find code and health and safety violations. If there are some then you can ask the seller to make the repairs. If they decline then they have to disclose the items to future buyers since they have been informed of the violations. The Realtor, now knowing these violations, must also disclose them to any future buyers. If they do not then they are most likely liable for the costs to cure.
Local Help with Your Real Estate Needs
The San Diego Property Shop
CA DRE # 00648687
Homes sell every day in non-flip circumstances with code violations. The perspective that Flippers are "getting away" with something with their remodels due to code violations is not particularly accurate. As a general statement, there is nothing wrong, illegal, or unethical about selling a house that is not up to current building code. Besides, the flippers will say they didn't know about the code violations in the first place.
With that said, I always look at a flipped home with concern. I see them (yes, I am stereotyping here) as lipstick on a pig. Flippers are looking to create margin between what they paid, and what they can sell a home for. I have seen many instances in which corners were cut, workmanship was below standard, and new paint and carpet was used to cover larger issues that go undisclosed. Which brings up a larger issue - like banks and REOs, a Flipper has never lived in the home and their level of disclosure is minimal. So, the history of the house is lost in many if not all flip situations, which creates the potential for some post-escrow surprises on the part of the buyer.
So, really, Hector is right - it goes back to his two words - to minimize those surprises, a buyer needs to exercise proper due diligence. A good home inspector will find those code violations and other issues that then can be addressed through a request for repairs from the buyer to the seller. The key is finding out about the issues before you actually own them. Know in buying a flipped house, there is a increased chance that behind the pretty kitchen, stainless appliances and travertine laden bathrooms is the bones of a house that was likely neglected for an extended period of time.
CA DRE 01775528