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Eric Odum
  • Commercial Real Estate Broker
  • Tampa, FL
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FNMA Foreclosure - Certificate of Occupancy

Eric Odum
  • Commercial Real Estate Broker
  • Tampa, FL
Posted May 5 2014, 13:24

Trying to buy a FNMA foreclosure in Tampa. The Florida FNMA addendum to the contract has some strange verbiage. It is as follows:

Certificate of Occupancy: If the Property is located in a jurisdiction that requires a certificate of occupancy, smoke detector
certification, septic certification or any similar certification or permit (“Certificate of Occupancy”) or any form of improvement
or repair to the Property to obtain such Certificate of Occupancy necessary for the Property to be occupied, the Purchaser
understands that the Seller requires the Certificate of Occupancy to be obtained by the Purchaser at the Purchaser’s sole expense.
The Purchaser shall make application for all Certificates of Occupancy within ten (10) calendar days of the Acknowledgement
Date. The Purchaser shall not have the right to delay the closing due to the Purchaser’s failure or inability to obtain any required
Certificate of Occupancy. Failure of the Purchaser to obtain and furnish the Certificate of Occupancy shall be a material breach

of the Agreement.

I don't even know how to get my hands around this. Seems odd that the seller (FNMA) would require the buyer to get a CO. Can someone who has purchased a FNMA foreclosure help me understand why this is necessary and how I can determine what my risk is here?

Thank you!

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