Re: Use and Occupany problem - please read - Posted by phil fernandez
Posted by phil fernandez on March 16, 2002 at 09:09:48:
In my state you need to obtain a "certificate of occupancy " in order to pass clear title. This CO has to be granted by the city the property is located in verifying things like septic/sewer complies with state environmental laws, property adhers to local zoning as far as the number of units allowed etc. Your state I’m sure is a bit different.
Bottom line is, do you want to make the seller’s problems your problem. Also are these problems correctable and at what cost are they correctable at. In a situation like this due diligence on your part should be the top priority. Now saying all that perhaps the problems are solvable, but you will want to be compensated for solving them, perhaps in the form of a lower price or better terms or both from the seller. Your first stop should be with the building inspector and city zoning guy to find out specifically what will have to be done in order to get your use and occupancy certificate.
Now on to the bad tenant that will have to be evicted. Eviction is a long frustration thing. In my state it can take up to 4 months or longer. And as you say you might be dealing with a " professional tenant ". Again if you are required to do the eviction after you take title to the property you should be compensated by the seller for your time, agrrevation and trouble.
All this takes time and money. Especially if this is your first deal I’d take the sure road. Put into your purchase and sale agreement that you only close after the seller has legally evicted the tenant and after he has received his " use and occupancy " permit. There are too many other properties out there for you to buy to get bogged down on one like this.
At least that’s my take. Good luck.