New Jersey Deal or No deal

General Landlording & Rental Properties
7yFollow

New Jersey Deal or No deal

Nyan R.
Rental Property Investor · Brooklyn, NY · Member since 2018 · 62 posts · 6 votes

Hi BP I have been in closing for 2 months now and have run into some issues. First issue: After the inspection we found out that the main water source has lead pipe. After it was tested, which took weeks for the results, it came back that the levels were high (19.7 ppb). Second issue: The day of the inspection we didn't get to see the inside of the garage because the landlord said that he rents it out and doesn't have access to those keys. So the appraisal was done and I asked my agent to schedule a day for me to see the garage and the work that has supposedly been completed. I have just been told that I may not be able to see everything until the day of closing. Also, the garage that the landlord allegedly didn't have access to before is actually being rented out to a current tenant that was present on the day of the inspection.So why couldn't I see the garage on the day of inspection?????

Overall, should I continue this deal or move to the next?

0Reply
14 views

Most Popular Reply

Joseph ODonovanPro Member
Property Manager · Ridley, PA · Member since 2017 · 427 posts · 449 votes
7y

@Nyan Reid 1) Are you still under contract? 2) I would never pull the trigger on a deal unless I see the entire property, including detached garages. The last thing you want is a tenant who is living in the garage who won't leave. Now, you have eviction costs and lost rental income. What if the garage is full of junk? Now you have more costs. Nothing good can come out of not seeing what you are buying. Tell your agent that you MUST see the inside or the deal is off.

2Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Joseph ODonovanPro Member
    Property Manager · Ridley, PA · Member since 2017 · 427 posts · 449 votes
    7y

    @Nyan Reid 1) Are you still under contract? 2) I would never pull the trigger on a deal unless I see the entire property, including detached garages. The last thing you want is a tenant who is living in the garage who won't leave. Now, you have eviction costs and lost rental income. What if the garage is full of junk? Now you have more costs. Nothing good can come out of not seeing what you are buying. Tell your agent that you MUST see the inside or the deal is off.

    2Reply
  • Shawn McenteerBusiness Member
    Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
    7y

    Talk to your attorney.  You need to see everything,  not good that your inspector could not access garage.  You should get inspector back to see entire property. If inspector is denied area there should be something that defaults deal.  I would also ask attorney if sellers will cover expense of bringing inspector back, you should not have to pay for that.

    973-975-3895
    House Hacking New Jersey563 Reviews
    WebsiteView Page
    0Reply
  • Dennis Pressey Jr
    Specialist · Philadelphia, PA · Member since 2014 · 231 posts · 69 votes
    7y

    @Nyan R. of course you dont close the deal.

    First, access to the garage should be granted. I am not sure how your contract is written, but this would be a breach/default by seller in most cases.

    Secondly, does the tenant for the garage have a legal lease in place? Deposit? 

    I would certainly need this information prior to closing, as an unleased tenant can basically hold you hostage for a very long time, especially in NJ.

    Finally, any structural or major defect (lead pipe or bad water) is grounds for price reduction or canceling the agreement. This is of course if these problems create an issue with your profit. If these major defects still fall within your budget and can cashflow/profit - then they really are not a huge deal.

    0Reply
  • Nyan R.
    OP
    Rental Property Investor · Brooklyn, NY · Member since 2018 · 62 posts · 6 votes
    7y

    @Joseph ODonovan I didn't think nothing of it because eventually I'll get to see it. Do really appreciate your thoughts on the tenant putting junk in the garage. I think I may walk away from the deal.

    0Reply
  • Nyan R.
    OP
    Rental Property Investor · Brooklyn, NY · Member since 2018 · 62 posts · 6 votes
    7y

    @Shawn Mcenteer I will talk to my attorney and discuss the situation and let see what he say. I will keep you posted on that. thanks for your thoughts

    0Reply
  • Nyan R.
    OP
    Rental Property Investor · Brooklyn, NY · Member since 2018 · 62 posts · 6 votes
    7y

    @Dennis Pressey Jr That's the kick I needed but I didn't think nothing of it because it was a private showing and the lead pipe is being worked out with the city so no cost. I really appreciate your thoughts and concern on this situation.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free