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@Tess Robinson

POS is Point of Sale. This is where a city comes in and tells you all of the violations on the property. You as the buyer either need to assume them or the seller has to correct them. 

If you assume them, you may need to put money into escrow that is held until the repairs are made. Some cities do not require it and others require 1.5x the highest bid to be held. So if you need 10k in work, they hold 15k until you do it.  It can be  released as you do the work. 

Now how to avoid the POS. 

1. Many cities do not have a POS, so pick a city without one. 

2. If the house is in an LLC or trust, you can transfer the entity instead of the house, but this has some other challenges.

3. Throw caution to the wind and transfer without a title company. This will work, but result in REALLY ticking the city off when you get caught... and you will. LOL

Hope that helps! :-)

Originally posted by @Tess Robinson :

@James Wise @Rob Gillespie Can you explain POS - what it is and how to avoid it?

 POS = Point of Sale.

This is a mandated inspection that cities perform on properties. If there are violations they need to be cleared by the seller prior to closing or assumed by the buyer. If the buyer assumes the violations some cities will require the buyer to put up escrow funds, which won't be released by the city until the violations have been cleared.

Some cities that have POS are

  • Garfield Heights
  • Cleveland Heights
  • Lakewood
  • Euclid
  • Shaker Heights

Some cities that do not have POS are

  • Cleveland
  • Parma
  • Brooklyn
  • Brook Park