I have made an offer to a property in Fort Lauderdale, FL that is in short sale. I was going to do some research however it is a very HOT property and priced way below market value (there is a catch of course) and I don't want to be doing my thinking while others secures the property with a contract. The last one fell apart after the bank countered and now we know the bank's "near bottom" number.
The issue is the property has four open permits, and these are not simple permits like adding hurricane shutters, or running a new electrical line to a shed type thing where you can easily quantify the risks. These are big permits such as "SECOND FLOOR ADDITION REMODELING ALTERATION" permit with many components to it and a bunch of failed inspections on plumbing, electrical, framing etc...
The seller has asked that I can search online for permit issues all I want, but I cannot call the city to alert them about these permits because they are afraid this may cause some sort of issues for them. They also want me to write in a clause into the contract saying I am aware there are open permit issues and have agreed to resolve or close them at my expenses and sign a hold harmless at the closing.
So my question is, is there any sort of period BEFORE the closing I can contact the city to find out details on these permits and depending on the answers I can back out?
Basically, is there any way I can properly understand my risks without causing them trouble if I walk away? I don't see how. I have to talk to the city to get any real information, the online status of "F" does not help me much. They want me to talk to the city AFTER the closing, and I want to do it before I agree to the contract.
Is there any sort of usual and customary procedures for these situations?
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Jack. These open permits will be a huge problem for anyone needing to finance the property. The only way to close them will be for the work to pass inspection.
You MUST contact the city to find out what will need to be done to clear the issue. you need to look out for your own interests.
Contact an attorney and seek legal advice. That's the first step.
Bryant, thanks for the reply.
I spoke to my attorney and he advised that it is a really bad idea to walk into a deal totally blind.
I then spoke to the agent to ask permission to speak to the city so I can have an idea what I am dealing with, the agent refused to give permission and said they have other offers coming in if I don't move fast. I believe he doesn't want to know any more about the permit issues for fear that he would be obligated to disclose them to future buyers. He is walking a very tight rope.
I am walking away from this deal.