Is this contingency on the Real Estate Purchase Addendum (Fannie Mae Property) reason to be concerned:?

Asked by Sinkewicz, Los Angeles, CA Wed Oct 3, 2012

"Buyer will be responsible for the Application and cost of the City of Los Angeles Department of Building and safety residential property report. Buyer understands that 9-A will not be signed by seller and agrees to forever idemnify, defend and hold harmless Fannie Mae, Coldwell Banker, its officers, employees, agents, representatives, parent and affiliated companies, escrow company, from and against any and all liability, loss, demand, judgements or other expenses (including, but not limited to, defense costs, expenses and reasonable attorney fees) from any information which is provided in the 9-A report."

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Kathleen Becker’s answer
Kathleen Bec…, Agent, Santa Monica, CA
Wed Oct 3, 2012
The 9-A report is required on all sales within the City of Los Angeles. It states what the property legally is, and if there are any permits on file with approved certificate of occupancies. This would show if an addition was legally or illegally done.

The bank may not sign them because they have no knowledge of the property.

Keep in mind that when you purchase a property, you need to know if any additions were done with or without permits. The new owner becomes responsible for obtaining any permits on the property and/or returning it to it's approved legal use.

Do you due diligence and get copies of any permits related to the property so you know what your getting in to.

Good luck!

Allt he best,

Kat Becker, Realtor
Prudential California Realty
0 votes
Jeffrey Sand…, Agent, Los Angeles, CA
Wed Oct 3, 2012
A few of the big items that pop up on the 9A report are viloations due to open building permits, no sewer connection and brush clearance. With some proper due diligence you should be able to determine the status of each of these during your inspection contingency. That's not to say its 100% guaranteed there isn't some unforeseen violation, but its unlikely.
1 vote
carlos parra…, Other Pro, Monrovia, CA
Wed Oct 3, 2012
It is always buyer be ware! Do your homework, check out the report or have someone who understands check out the report and take whatever risk you need to take with open eyes. The legalese is appropriate, if you ignore the report, don't expect to hold others responsible.
0 votes
Janey Bishop, Agent, Calabasas, CA
Wed Oct 3, 2012
Download a copy of the 9a report and take it to your inspection. If you aren't satisfied with the property's compliance you will still have the right to cancel.

Don't be thrown off by the legalese

Have a realtor work on your behalf in this transaction. The Seller pays the commission but you need full representation.
0 votes
Diane McDona…, Agent, Los Angeles, CA
Wed Oct 3, 2012
If you're taking on the responsibility for the 9a report, usually in a foreclosure or short sale, check with city records during your physical inspection contingency period to make sure the property has a connection to a sewer permit and if there are any liens on the property. In a regular sale the seller normally provides the 9a report and can be held responsible for any glitches that might show up there, including getting a permit after the fact for a sewer that doesn't show as being permitted by the city, or even for putting in a new sewer if there isn't one.
0 votes
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