Urgent question: city orders on property

4 Replies

Happy new year everyone!

I’m a new investor and am seeking some advice regarding a property that I’m in the process of purchasing. During the due diligence process, I’ve discovered that the property has two open city orders on it -

1. Back-flow preventer device and

2. Electrical permit (IBI).

Can someone please tell me what this means? Are the sellers supposed to close all open orders before selling? What should be my next step to deal with this open order issue?

Appreciate all the help!

You would have to check with the city for exact details, as it could vary from city to city. 

Is someone living in the property now?  They could be accruing daily, weekly, or monthly fine/fees from the city until they are not complete.  If you are using conventional financing to purchase the property, they could hold up or stop the financing. 

My suggestion, go to the city building department, tell them you are interested in purchasing the property, find out what they will require from you to close the orders, and if their is any fees or fines being assessed to the property because of them.  That is the only way to get a complete answer.

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