Short sale needing a certificate of occupancy

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Short sale needing a certificate of occupancy

Tanya Brown
Wholesaler · Union, NJ · Member since 2020 · 7 posts · 2 votes

Good evening all,  I have come across a short sale where the Buyer will need a Certificate of occupancy. The property is also in need of repair. After looking into it, I see the CO varies by municipality. What I want to know is if the buyer needs to have the CO prior to close? And how does this clause affect the deal?

I appreciate everyones feed back, thanks!

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  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    A lot of towns in NJ will issue something like a CO waiver (or at least they did when I was there several years ago). I can't think of what they call it at the moment, sorry. Essentially you sign something saying no one will occupy the home until you get a real CO. I've been involved in several deals that closed with one of these waivers. It's been several years now though, and it will vary by municipality, so you just need to call and ask them about this. Of course, your lender needs to be on board with this solution as well.

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  • Peter Boutros
    Real Estate Agent · Fanwood, NJ · Member since 2016 · 26 posts · 8 votes
    6y

    @Tanya Brown

    Good Morning TANYA, I highly recommend doing an OPRA request. If you google OPRA request form and put the town you’re buying in next to it, the pdf will come out with the email address to email it to. You can fill it out and request for all open permits on the property. This will give you an idea what open permits you will need close in order to get the CO. Other then that, most of the time you’ll just need the Carbon/smoke detectors and fire extinguisher. Often a lot of towns will allow you to close with a temporary CO where you’re allowed number amount of days to close the open permits or file permits for any work that was done without permits. But you’ll have to at lease but the carbon/smoke detectors & fire extinguisher up. I hope this helps. Please feel free to reach out if you have any questions.

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  • Tanya Brown
    OP
    Wholesaler · Union, NJ · Member since 2020 · 7 posts · 2 votes
    6y

    @Joseph Cacciapaglia Thanks Joseph!  I will will contact the municipality

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  • Tanya Brown
    OP
    Wholesaler · Union, NJ · Member since 2020 · 7 posts · 2 votes
    6y

    @Peter Boutros Thanks Peter that is a great idea.  I am already checking out that site now.  I appreciate your help!

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