Do not misinform people. There is more to the topic.
"Red-tagged" does NOT mean it is not livable or inhabitable. There is a wide array of problems that can get your property or structure Red-tagged. One as minor as a fence that is built a foot too high.
The tag will contain information dealing with the date of the inspection, the inspectorâ€™s identification, and a brief comment on the problem. The red tagged is also recorded on your Title, if the Red-tag got posted on the property and somehow got taken down.
Your first move as a buyer or agent is to speak directly to the government agency in charge of the property. EXAMPLE:
Santa Cruz County Code Compliance, Planning Department
701 Ocean Street, 4th Floor
Santa Cruz, California 95060
(831) 454-3522 for San Lorenzo Valley
Each building department has a list of these Code Compliance requirements.
Q. Where can I find the Santa Cruz County Code Compliance?
A. You will find the County Code here: http://www.co.santa-cruz.ca.us/County_Code.html
When selling a house you need to notify buyers that a red tag exists because Lenders normally don't want to lend on a "red-tagged" property unless the issue is remedied before close of escrow. The red-tagged will be â€œexpungedâ€ from the title for a fee. However, there are lenders that have loan products that can be used when a redâ€“tag exists on a subject property.
The Lender to talk to about this is:
Senior Loan Officer
Office: 408-559-9860, ext 19