Question on code violations

3 Replies

my question is if you have a seller who has unpaid code violations from the city, and you enter a contract to purchase, what happens with the violation fines? Does he pay them after closing? Do you become responsible for them? Do they go away once title is transferred? Will title have issues because of the violations? 

@Patrick Miller   Has there been a lien on the property?  If so you should expect to pay them off at closing if you are getting financing.  If you are not getting financing they could be paid after closing but YOU should expect to pay them if they are not paid before closing.

The fines might also be adding up everyday, so even if they are paid up as of closing they might immediately start adding up again.

Thank you for responding...I’m just looking into making a list to mail to for wholesaling purposes and was unsure of how if they have fines adding up from the city, how that is handled if they were to agree to sell. If it would be worth the headache when the properties are only most likely 10-20k .

Great question!  Like the previous comment, regardless of if there is an official lien on the property from this code violation, I would treat it as such.  In other words, you can put in your contract that any lien, encumbrance, or other outstanding bill/dues/debt be remedied prior to sale.  If they are not, then it would appear you have an out from the deal.

Also, if this doesn't work then you could ask the seller specifically (or more accurately CALL the local gov't entity and get the amount due verbatim from the horse's mouth) and account for this in your offer.  If the bill is say $350, you shave that from your offer.  That way its accounted for.  

Best!

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