Home Buying in Seaford>Question Details

Knicksndhlp, Home Buyer in Seaford, NY

about to send executed contract to bank on a ny short sale, we are being told we can take care of CO issues after closing. Any chance this changes?

Asked by Knicksndhlp, Seaford, NY Fri Feb 4, 2011

Help the community by answering this question:


Generally the lender will not get CO's on a property they are selling as a short sale. In addition, I have not seen any towns or villages in Nassau County issuing temporary CO's. The big question is what type of financing you are looking for. If the only work that is needed on the house is the CO's, then you probably wouldn't want to use a 203k loan. However, if there is anything needed, either to get the CO's issued, or to do other work, you can go that route. The 203k loan is an FHA rehab loan. If the costs involved are less than $35,000, you can do it as a streamline. If more, then you have to do a regular 203k.
If you are planning to put down more than 20%, then there is a possibility that you could get a loan and give an undertaking at closing that you will get a CO within "x" period of time. It depends on what the CO is for, and what is involved. This does not mean that your attorney will allow you to close without the CO.
This brings us to another issue, what the contract says, and what doesn't have a CO. If we are talking about a finished basement with a bathroom, and the contract doesn't say something like, "the seller will not get a CO on the bathroom", then I doubt that this will be picked up. The CO says it is for a 1 family house, not a 1 family house with a bathroom in the basement. As long as there are no open permits, you should be fine.
Arlynn and I have worked together on deals where attorneys do thing slike put in the contract that the seller will remove the bathroom in the basement and the gas stove in the basement, will cap off everything but the buyer can put it back after closing. That is something that you don't want to see.
0 votes Thank Flag Link Sat Feb 5, 2011
In our area each town is different...Some towns have a simple coo requiring smoke detectors etc as part of the uniform fire code...Other towns have a three page inspection plus a fire code inspection...call the town, and ask what is required to receive a co/coo
0 votes Thank Flag Link Sat Feb 5, 2011
What is your attorney advising, he/she is your best source of advise--c/o issues are always best handled before closing...consult with your attorney.....
0 votes Thank Flag Link Sat Feb 5, 2011
We don't advise our clients to close without a COO. We at least want a temporary COO in place before closing.

Good luck!
0 votes Thank Flag Link Sat Feb 5, 2011
Any issues with the property (including C/O ones) would naturally be yours to rectify after closing. That might not be an issue for you assuming you intend to use your own cash to acquire and rehab that property. However, that probably will be an issue for you if you intend to finance your purchase, because many conventional lenders won't fund a purchase until the C/O issues have been resolved.

Just as you could take care of the C/O issues after closing, they could agree to extend the closing, and take care of those issues themselves. Yet, if they don't want to take care of those issues, then they could also further discount that sales price instead, and you could take care of them. Either way, you wouldn't get stuck paying for the issues that they currently own.

You might want to run those options past your attorney too.
0 votes Thank Flag Link Sat Feb 5, 2011
This looks like a red flag to me. Who is telling you this? Check with your attorney. Better safe than sorry.
0 votes Thank Flag Link Sat Feb 5, 2011
You can certainly try and take care of CO issues once you own a property but much depends on what has to be done for the particular issues to be taken care of. Is there anything that would be a real expensive fix in order to qualify for a CO. You should discuss your concerns with your attorney. Good luck.

Ralph Windschuh
Associate Broker, Certified Buyer Representative, Senior Real Estate Specialist
Century 21 Princeton Properties
0 votes Thank Flag Link Sat Feb 5, 2011
Who is telling you this?

What is recited in the contract? Does it stipulate that all portions of the home will have a CO (Certificate of Occupancy) BY closing of title? What is your attorney's advice?

Also - Will you be getting a mortgage? If so, I would be very surprised if your bank will issue a mortgage if any portion of the home does not have a CO by the closing date.


Arlynn B. Palmer, ESQ, SRES, CBR, CMS, CNS
Associate Broker, REALTOR
Coldwell Banker Claire Sobel
Direct: (516)410-3594
Off: (516)621-6300 x 205
Email: Arlynn@ArlynnPalmer.com
Web Reference: http://www.ArlynnPalmer.com
0 votes Thank Flag Link Fri Feb 4, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer