"Open permit" for a deck

10 Replies

Hi there. I'm closing on a HUD property in Beacon NY. There is an "open permit" on the deck, and my lawyer said I need to have the deck inspected post closing by the building department, who would then tell me if it was built to code, and if so, issue a certificate of occupancy. If it's not, it may mean I have to improve elements of the deck to get it compliant. I'm based in NYC, and this type of issue usually costs a lot of money to get it compliant. Is it the same case upstate? And if so, do you think last minute price negotiation is possible? Thank you fellow investors.

Hud will not renegotiate.  You only options are to close and accept the responsibility or terminate and lose your earnest money

@Greg H.Thank you. The lawyer, the mortgage broker and the realtor were telling me this is really a minor issue and worst case scenario, I can tear it down. In retrospect, if I knew to look up to see violations before signing contract, that would've been helpful. HUD prices are attractive but HUD doesn't negotiate, doesn't do repairs... do you think the pros of buying HUD outweigh the cons? I follow your posts and I think you're a HUD expert :)

Odds are they never told the building permit they were done building the deck and it requires an inspection.  They had to turn in some sort of drawing or diagram of what they are building with sizes etc and the building dept had to approve this to get the permit.   Not a show stopper in my book. 

@Jim Adrian thanks for your input! People were telling me this wasn't a major issue but of course I had to ask BiggerPockets to make sure :) 

Originally posted by @Sunny Pyun :

@Greg H.Thank you. The lawyer, the mortgage broker and the realtor were telling me this is really a minor issue and worst case scenario, I can tear it down. In retrospect, if I knew to look up to see violations before signing contract, that would've been helpful. HUD prices are attractive but HUD doesn't negotiate, doesn't do repairs... do you think the pros of buying HUD outweigh the cons? I follow your posts and I think you're a HUD expert :)

Since I have made a living buying HUD homes, the obvious answer is yes. It works much better is some areas that others. I know the system and my purchases are just not personal so all is good. Congrats!

@Greg H. Thank you! This is very true that you shouldn't get personal. I feel I paid a bit more than I should've because I "fell in love" with the property. From now, it's all business for me :) 

Probably no big deal unless the deck is large and on the second story. You can always go look at the deck yourself and see if it's anything obvious like no railing (if over 30 inches from grade) or bad framing and such.

@Alfred Edmonds Hope so! The deck is on the first floor and this house comes with a large, finished basement. There is railing. I remember when I saw the house, there was a flyer that said "don't step out in the deck. Slippery." The home inspector said I probably need to power wash and seal the wood. Keeping my fingers crossed that's all I'd have to do and the building department will send me their blessing with a zero bill :) 

Congratulations on your Beacon investment @Sunny Pyun , it's a great town. I'm doing the same as you, living in NYC and investing in the HV. As others have stated, I highly doubt that this deck issue will be difficult or expensive to resolve. The building dept. in Beacon has bigger fish to fry at the moment. Send me a message if you ever need contractor recommendations in the area.

Thanks @Nathan Kerxhalli ! Beacon is a beautiful town! Hope the Building Dept will leave me alone! I can always use another great contractor :) Sending a message 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here