"Violation Status" vs "Inspection Status"

Buying & Selling Real Estate
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"Violation Status" vs "Inspection Status"

Raquel Zanoni
New to Real Estate · Cincinnati, OH · Member since 2020 · 14 posts · 7 votes

Hello BP community!

I am currently under contract on a duplex in Chicago. The property was a gut rehab so as part of my DD I looked at all of the building permit and inspection records on the city of Chicago website to make sure a) there were permits pulled and b) inspections were passed. Nothing stood out beyond a partial pass on the electrical inspection that we aimed to resolve during attorney review. 

That said, it wasn't until attorney review that I pulled violations associated with the property (this lives in a different part of the city of Chicago website) and noticed there are two statuses "Violation Status" and "Inspection Status" - in some cases the Inspection Status is "Closed" but the Violation Status is "Open". Can someone help me understand what this discrepancy actually means and what liability I am under should the Violation Status remain "Open". 

Thanks in advance! 

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Most Popular Reply

Prashanth MahakaliPro Member
Architect · Chicago, IL · Member since 2015 · 93 posts · 130 votes
5y

Hello @Raquel Zanoni @Jonathan Klemm

Since i dont have the property specifics, I can provide general information. From the violation list, the most critical is to make sure that the property has been removed from the infamous "Demolition list". If permits were pulled and inspections completed, usually the property is good to go in terms of legal issues. However, sometimes, one of them is missing. Either permits were not pulled properly or permits were pulled but inspector noted some items that the contractor never completed and called for reinspection. 

When you have a "vacant building" violation, the city almost always expects to have some drawings submitted and a permit pulled. In this case, looks like they were done. The vacant building violation is a generic one but important since now you know as a potential buyer that the building could have been left open to the elements and hence would need work with drawings and permits. Account for this while you make the offer for negotiating a better price and delay closing until permits are almost approved. 

In extreme cases, if you need a resolution fast, walk into the Chicago inspectors office at 2054 W Washington and they can help you with an updated list(may or may not provide information than online) and advise what to do about it. Remember they dont like anyone walking in but we have done it.  Happy to recommend a good attorney that specializes in building court cases. 

Good luck! 

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  • Connor O'Brien
    Chicago, IL · Member since 2017 · 175 posts · 86 votes
    5y

    I bought a building 2 years ago in a similar state. All the violations were addressed during the rehab and now when I look it up- only active violation is not posting my management sign. 

    How bad are the violations? You think you can address them in the rehab?

    0Reply
  • Raquel Zanoni
    OP
    New to Real Estate · Cincinnati, OH · Member since 2020 · 14 posts · 7 votes
    5y

    @Connor O'Brien - nearly all of the inspections statuses on the cases are closed, but the violation status is "open". The building is already rehabbed and there is just one pending "electrical inspection" partial passed. I guess I just don't know if the discrepancies in inspection status vs violation status actually means anything here

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    Hey @Raquel Zanoni - I'm not an expert with permits and violations, but @Prashanth Mahakali and @Samuel Pavlovcik deal with them on a regular basis, so maybe they can chime in.

    Sounds to me like you don't have any major issues on your hand, I've seen tons of buildings with bunch worse violation issues.   Great job doing the proper due diligence!

    Also, it might help if you included a screenshot of the violations with your post.

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    1Reply
  • Raquel Zanoni
    OP
    New to Real Estate · Cincinnati, OH · Member since 2020 · 14 posts · 7 votes
    5y

    @Jonathan Klemm thanks for the feedback and the suggestion! Here is a snippet of the violations and what I was describing 

    1Reply
  • Jennie Ballard
    Brazoria County · Member since 2020 · 69 posts · 24 votes
    5y

    All those appear to be related to vacant building management. I believe you would be able to get these closed as if building is rehabbed except signage until you get 1st occupant. 

    0Reply
  • Connor O'Brien
    Chicago, IL · Member since 2017 · 175 posts · 86 votes
    5y

    You seem to know more about this than I do. I was also missing final inspection tho and violations were active when I bought it. I never got the inspection but violations disappeared

    0Reply
  • Prashanth MahakaliPro Member
    Architect · Chicago, IL · Member since 2015 · 93 posts · 130 votes
    5y

    Hello @Raquel Zanoni @Jonathan Klemm

    Since i dont have the property specifics, I can provide general information. From the violation list, the most critical is to make sure that the property has been removed from the infamous "Demolition list". If permits were pulled and inspections completed, usually the property is good to go in terms of legal issues. However, sometimes, one of them is missing. Either permits were not pulled properly or permits were pulled but inspector noted some items that the contractor never completed and called for reinspection. 

    When you have a "vacant building" violation, the city almost always expects to have some drawings submitted and a permit pulled. In this case, looks like they were done. The vacant building violation is a generic one but important since now you know as a potential buyer that the building could have been left open to the elements and hence would need work with drawings and permits. Account for this while you make the offer for negotiating a better price and delay closing until permits are almost approved. 

    In extreme cases, if you need a resolution fast, walk into the Chicago inspectors office at 2054 W Washington and they can help you with an updated list(may or may not provide information than online) and advise what to do about it. Remember they dont like anyone walking in but we have done it.  Happy to recommend a good attorney that specializes in building court cases. 

    Good luck! 

    2Reply
  • Raquel Zanoni
    OP
    New to Real Estate · Cincinnati, OH · Member since 2020 · 14 posts · 7 votes
    5y

    @Prashanth Mahakali thank you for such a thoughtful response! 

    0Reply
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