Closing soon, I won't be able to remove a HPD VIO myself in time for closing. Is it true that I can setup an escrow to correct the issue?

Asked by Jamesp, Queens, NY Sat May 14, 2011

Closing in less than 30 days but was just notified this Friday about an illegal garage conversion violation. The issue was corrected and I contacted the HPD to remove the violation. But it looks like the entire process will take more than the time I have. My friend brought up this escrow idea and was wondering if it was true? Don't want to delay closing on the sale. Any input would be appreciated. Thanks.

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6
Hezrell Vasq…, Agent, Massapequa, NY
Sun May 15, 2011
Your best alternative is consulting with your attorney regarding this situation.
0 votes
Allen Bauman, Agent, New York, NY
Sun May 15, 2011
Jamesp

Everyone is right. Your attorney has to work this out for you. You will not know which way it will go until everyone is notified and what position they will take concerning the violation. Good luck.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun May 15, 2011
You really need to consult with your attorney, he/she can best advise as to all possible remedies; leaving money in escrow could be an option if your buyer's lender agrees....
0 votes
RPN New York…, Agent, New York, NY
Sun May 15, 2011
You should provide whatever document you have generated thus far with regard to correcting the violation to your attorney so he can try to work out a reasonable agreement with the seller's title company. In all likelihood, the purchaser's lender would be willing to proceed with the closing if they have the title company's blessing. Everything, including the amount of escrow title company would want to withhold at closing, will depend upon the extent of documentation you have to prove the expected violation removal. You may also try speaking to a buildings department expeditor to try to accelerate the correction and/or assist in providing stronger documentation regarding the violation correction. One caveat though- if the violation correction somehow substantially changes the character/value of the property (ie. 2 fam now becomes 1, or the appraised value of the property is substantially affected) the purchaser may no longer qualify for his mortgage or the lender may have to do some other reassessment, underwriting review, etc. Have your lawyer proactively deal with the problem to make it easier and quicker. Good luck!
0 votes
Marco Ascazu…, , Astoria, Queens, NY
Sun May 15, 2011
Your friend is right!.Rush your attorney to work with buyer and lender, both have the right to allow or not allow to close the transaction with money in escrow. If HPD report is positive then it will be easy to swallow. If not, chances are the cloud in title won't be accepted by lender and then you have just one way to go, and you will need more time to clean and clear the HPD records before closing. Good luck!
marco@realtyexecutives.com
0 votes
Therese L Ko…, Agent, Bayside NY 11361, NY
Sun May 15, 2011
Hi James, Speak to your attorney. It is true you can close in escrow-allowing enough money set aside to be held by the sellers or buyers attorney to remedy the situation...however...depending on the bank doing the financing they may or may not allow escrow. 1st things first-speak to your attorney. Terry K 718-614-3167 cell or email therese.korahais@elliman.com
0 votes
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