Who checks if properties have violations when making an offer?

Question

I know the title company searches for the title to be cleaned from liens ect. but who looks into the property if they have violations or Cfo`s ect?   my lawyer said to check before making any offers on the properties but i thought someone checks it when making an offer and having 15 days to do my due diligence

Gustavo Mejia · Answer

Thanks for the info am new to the investing field and I thought I was ready with getting a lender my contractors my lawyer I but I did not know anything about the violations thank you so much for that information is there anything else I should be aware of before I make any offer some properties

Patricia Steiner · Answer

You do - and you do it early in the due diligence process.  There may be several types of code enforcement that are filed at the state, county, and city level.  There are also licensing requirements - and violations can be filed with those as well (such as being licensed for non- transient lodging when in fact the tenants are less than month-to-month or longer residents.  Depending on what you find, you may not want to proceed with the closing unless the seller can/will resolve the issues beforehand.  I have found multiple violations on every deal my clients have pursued during the past several months.  We're definitely in a "Let the Buyer Beware" environment.  Kudos on your selection of lawyers...his recommendation - and then your action - will uncover those ROI-zappers.

Gustavo Mejia · Answer

Great thank you so much for the info

Michael Lewis Lee · Answer

Hello Gustavo!  Besides trusting the Title Company, the intelligent should also check it personally before investing any of your own obligation.  You should clearly state what you need to hear of and expect from the Title Company.  When first starting out, do not assume anything while you are building your trust.  If the Attorney is experienced in that area working on that specific item, I would tend to believe in what they say as an Attorney.  As a precaution I would get a title insurance policy in case anything negative comes up, that policy will pay to clear that up completely.  Good luck to you!