Snuffles, Both Buyer and Seller in New York, NY

What is the impact/dangers of buying a place that has only a Temporary CO (rolling every 3 months) rather than just an outright CO? Affect Renovations

Asked by Snuffles, New York, NY Thu Dec 15, 2011

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Jolie Muss’ answer
Snuffles,
As you are in New York it would be a good idea to consult a local real estate attorney before entering into any commitments. It would also be good idea to contact the building department in the borough the property is located as well as consulting some local engineers and licensed contracting/renovating companies to get their feedback.
0 votes Thank Flag Link Thu Dec 29, 2011
It is highly unlikely that you will be able to secure mortgage financing with a temporary CO...unless you purchase with a FHA 203K loan. An exception MIGHT be made for a escrow holdback, which would require you, or the seller, to set aside 1.5% of the estimated repairs with your closing agent. A hold back is also set for a specific period of time, usually 30 days.

Very few lenders will approve a escrow holdback in today's market, so that is probably not going to be an option. However, the one exception may be repairs that cannot be made due to weather conditions; such as a roof repair in New York in December (LOL!). If there is any possibility that you will need mortgage financing, I would make sure you discuss your question with your mortgage professional prior to making any offers on the property.
0 votes Thank Flag Link Fri Dec 16, 2011
Temporary certificates of occupancy are granted on homes that require repairs to bring the home into compliance with local safety and building codes. If you buy a home with a temporary C. of O., you are agreeing to take responsibility for those repairs after you close on the house and become the owner. This is often done when a seller doesn't have to means to make such repairs themselves (or simply doesnt want to) and the buyer is willing and able to take responsibility. You will generally have 30-90 to make the necessary repairs and have the home re-inspected by the local building department.
0 votes Thank Flag Link Fri Dec 16, 2011
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