Investor · Westfield, NJ · Member since 2017 · 12 posts · 1 vote
Dear fellow bigger pockets investors,
I am purchasing a 3-unit multiple family in Union County, NJ. The current owner didn't pass the green card inspection and they don't have time to fix them before closing.
Does anyone know 1). where can I find out what's exactly green card the violations? 2). How can I ensure that the seller will take care of the violations and pass the re-inspection after closing?
Investor · Westfield, NJ · Member since 2017 · 12 posts · 1 vote
8y
thanks Sam, green card is an inspection (every 5 years) required by NJ state (Bureau of Housing Inspection) for 3 and up multi-family. I am still looking for NJ state website http://www.state.nj.us/dca/divisions/codes/offices/bhi_faq.html#5 for the answers. The link you posted is for township level inspection. Thanks anyway for the help.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
You need to contact the Bureau of housing inspections which operates under the Division of Community Affairs. Request a copy of the violations and they will send them to you.
if the seller hasn't fixed the violations, then hold a considerable amount of money (seller's proceeds) in escrow at the closing until the violations are resolved and a green card is obtained.
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
Also do you have an attorney on this? If you're in South Jersey then an attorney isn't necessarily customary. However I would still obtain one. Especially when you're talking about properties that are 3 units and up which falls under the jurisdiction of the Department of Community Affairs.
Investor · Westfield, NJ · Member since 2017 · 12 posts · 1 vote
8y
Thanks Ibrahim for your advice. Yes, I did contact Bureau of housing inspections and they emailed me the inspection report and commission of orders right away. The biggest issue is to install fire escape (second means of egress) for the 3rd floor unit. I am trying to know how much I should request the seller to put in Escrow. Do you know the cost range of installing a fire escape? I will try to call contractors for estate. Thanks Ibrahim again for your reply.
Did you end up closing this deal? I'm curious as to how you made out, and whether or not you were able to get the Seller to agree to hold funds in escrow to cover the cost of the rectifying the violations. If so, did your attorney draft a modification to the P&S agreement outlining terms/conditions of the escrow account/NJDCA inspection/violations?