What are the logistics of making repairs and paying for costs to a house that is "buyer responsible for c of o"?

Asked by Dan, Clark, NJ Tue Aug 16, 2011

I'm interested in buying an as-is house, but can't make sense of how I can get keys and make repairs to a house that isn't mine yet. Thanks for the input!

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5
Ronald Shaff…, Agent, Toms River, NJ
Tue Aug 23, 2011
In New Jersey you would be best served to follow Jeanne's advice. If you need the name of a good full time agent in the Clark area, let me know. Best of luck to you.
1 vote
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sun Aug 21, 2011
Hi Dan, the CO to close is likely an inspection by the township's fire prevention dept and includes a review of equipment, placement and functionality of smoke and carbon monoxide detectors and fire extinguisher. The township website will provide details on what the CO inspection involves for that particular town and the process to schedule. It generally involves a nominal fee and someone needs to be in the house at the time of the inspection. You are wise to test everything that will be inspected because if you fail the inspection then you have to reschedule, incurring a second fee and possibly causing a delay.

If the property requires repairs in order for you to secure your financing, then that is another matter. FHA financing may require that. But as the prior poster mentioned, there is also a rehab loan and that is a bit more involved - estimating the value of the property with upgrades so that you can finance the improvements.

The bottom line is this - what you are facing is new to you, but not uncommon. What I recommend is that you work with an experienced agent and lender - plus the best attorney and inspetors you can find. Your agent, and attorney will be able to guide you through these steps
Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
1 vote
Weichert Rea…, Agent, Watchung, NJ
Tue Feb 21, 2012
Dan, did you buy anything in 2011? If not would you kindly tell us why not? Regards,
0 votes
Molly Hay -…, Agent, Columbus, OH
Tue Aug 16, 2011
As a buyer your would be able to obtain the certificate of occupancy after closing on the home. You should not make any repairs to the home until it is yours!! This is important because you could end up forking out a ton of money making repairs and never actually get the home! If you are financing the home and their our loan conditions on the appraisal that need fixed prior to closing than ask your lender if they are able to set up an escrow account. I have closed 50% of my foreclosures this way!! Good Luck
0 votes
Christopher…, Agent, Methuen, MA
Tue Aug 16, 2011
My interpretation is that you would have to get the certificate of occupancy after you close and make repairs. If you are using financing to purchase you may need to consider construction loans or rehab loans like the HUD 203k loan program.
0 votes
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