Hi! My wife and I just got our bid accepted by the bank.

Asked by Kevin, Morris County, NJ Sun Feb 1, 2009

The township of morris requires that the seller obtain a CCO but the bank says it's as is and buyer is responsible for all open permits...Now, according to the town the bank has to do the work and obtain a CCO? Will the bank do the proper repairs in order to sell?

Help the community by answering this question:

+ web reference
Web reference:


Diane Glander, Agent, Spring Lake, NJ
Sun Feb 1, 2009
Most likely, not. A bank sold property is normally sold "as is" and it's the buyers responsibility to obtain c/o, termite certification, etc. It should have been made clear to you when your contract was written or at least when it went through attorney review.
Web Reference:  http://www.dianeglander.com
0 votes
Lynn Dachisen, Agent, Bernards Township, NJ
Tue Feb 3, 2009
Kevin - the bank absolutely will not do the repairs. I have several short sales in progress, and deal with the banks on a regular basis. What kind of work is involved? If its relatively small, then it may be worked out between seller, buyer, and agents to get the job done. If it's a large job you may be out of luck. I personally would not pay any money on a home that I do not own yet. Your contract should have stated that the CO was the buyers responsibility, but of course there is a limit to what you may do. That said, you may be able to go back to the bank and renegotiate to include the cost of the repairs to be included in the HUD1, where you are paid at closing to reimburse you for the work that was done, as a seller concession paid to YOU. (not the bank) This of course will extend the approval, IF they approve it. Short sales are not easy, and that's why it really takes patience to get a really good deal - that's the price you pay :) Any questions, contact me at dachisen@optonline.net
Web Reference:  http://www.LynnDachisen.com
0 votes
William Leigh…, , New Jersey
Mon Feb 2, 2009
Hi Kevin: At this point, the bank will not do any repairs. They sold the property as-is and will stick to it. In ALMOST every venue (all that I have done business with, anyway, in both NJ and PA,) the town will let the BUYER assume the [responsibility for correcting] violations. In Trenton, for instance, they have a pre-printed form that the buyer signs and it states that the buyer will not only fix the violations but will also not have anyone occupy the property until the violations are fixed. There is a time limit to get it done but, in the case of major repairs, upon application, the city has extended the time limit.

Of course, this means that the city knows what the violations are. I have seen buyers pay the fee and schedule the city's inspection, so the list of violations and the assumption can be completed before closing. However, it is more common for the seller to order and pay for the inspection. In some jurisdictions, the trend has been for the city to appoint an outside engineering company to do the inspections and you can get that company's name at city hall and then contact them yourself, if that's the way it's going to go.

I have seen inspection fees creep up to the $200.00 range. While that's a bit high, compared to the value of the property, it's really nothing, so, my advice is, if you want the property, do what you have to get it.

Having said that, I would NOT pay for repairs for a property that I did not own. The bank may not like it but in the ultimate, they have to obey local ordinance, just as any other homeowner. They should have legal counsel who will tell them that and, since you are dealing with a large corporate entity, one whose employees may not have a clue about NJ state or NJ municipal law and therefore a somewhat cavalier attitude, you should too.

Best of luck.
0 votes
Laura Gianno…, Agent, Manahawkin, NJ
Sun Feb 1, 2009
Your contract should have included under additional contratual provisions "Seller(s) shall allow buyer access to the property prior to closing for repairs necessary to obtain a certificate of occupancy. Repairs will be at the buyers expense, and carried out by licensed insured professional."

In my area the town doesn't care who does the repair, as long as its done.

Good luck!

Laura Giannotta
Keller Williams Atlantic Shore
0 votes
Gina Chirico, Agent, Fairfield, NJ
Sun Feb 1, 2009

Congrats on you bid getting accepted. From my experience, ALL foreclosures are in AS IS condition. Most likely it always falls on the buyer to obtain the CCO and close out all open permits, etc. but all of this should've been disclosed in the original listing sheet. The agent should have typically disclosed house is as, buyer subject to all open permits/CCO, etc......etc...etc.... Is this the first that you are hearing of it? Had your agent not questioned this if it wasn't in the listing sheet? Sometimes the bank will do the proper repairs or some of the repairs but you will need to have that worked out asap and definitely in writing from the bank should the bank agree to the repairs. Do you know from the town what permits are open and what is not up to code, etc. so at least you have a ballpark figure of what this will cost should you still wish to buy the house?

With all that being said, it should have been disclosed to you before entering your offer that the house was as is and the bank not responsible for anything.

Good luck.

Gina Chirico, Sales Associate
Prudential NJ Properties
0 votes
Eric Funk and…, Agent, Pine Brook, NJ
Sun Feb 1, 2009
Hi Kevin,
I don't think that the bank will do any repairs. Their agent may organize the certificate of occupancy. Get your agent to speak to the listing agent to find out.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more