Purchasing MF but green card will take 2-3 months?

Question

I am in contract to purchase a 6 family building in NJ. Green card inspection was done but will take 2-3 months for the actually green card to be issued.

Since no green card in hand my lender requires 5k in escrow to cover any suprises.  I do not want to wait 2-3 months to close. What should I do?
	
	Who should bear the responsibility of the 5k in escrow - seller or buyer?

Regina G. · Answer

@Peter Fokas

Make a habit of asking if your properties have green cards. I've done so recently in my NJ searches. 3-units that don't have them are red flags for me.

Good luck!

Ibrahim Hughes · Answer

See if you can go directly to the DCA in trenton and pick it up over the counter.

Seth in New Jersey a green card, sort of like statewide certificate of occupancy for multi family dwellings three units and up as well as hotels, is needed when obtaining permanent financing.

Account Closed · Answer

@Ibrahim S Green card was new to me. Thanks!

Johann Jells · Answer

Did the current owner get the inspection report yet, or are they still waiting for that? If they had it, you could see what violations were listed and are they serious enough for misgivings. And they always find something. Even if it had been that way for decades of previous inspections. I recently had one where the inspector had a trainee, most violations I've ever picked up! I've had others where all they do is check the smoke & CO detectors.

BTW, how in the world are you getting a residential mortgage on a 6U? Above 4 is always commercial AFAIK.

Devang Patel · Answer

How about if the previous owner had a green card and it was only a few years in.  Does the new owner have to have the property reinspected once purchasing or can you wait for reinspection until the 5 years are up?

Peter Fokas · Answer

you will probably have to wait a few months more. The green card people told my agent that they are under no obligation to keeping deadlines based on buying and selling of property. You being under contract is not on their radar and will not make them move faster.

Dan Crenshaw · Answer

I am under contract for a 3 family in NJ and the green card inspection is required. Started the process 3 months ago. Still waiting.

Peter Fokas · Answer

I think 3 units properties do not require green cards. Only 4 units and higher require green cards (I think).

I know my lender for the 6 unit required the green card to close. Since they did not get it in time they required 5k in escrow until the green card appeared.

Peter Tverdov · Answer

As others have said, the state is in no rush to issue these green cards. I had my state inspection done almost a year ago and just got the papers to pay for the inspection this month lol. I had much more sense of urgency than they had, so don't sweat it too much.

You WILL need a green card if your dwelling is over 3 units or a hotel. The Bureau of Housing in Trenton can send someone out to inspect the place, ask when you can follow up but apparently for some reason it takes forever.

Peter Fokas · Answer

They take forever...We closed with the seller leaving a 5k deposit since they did not have the green card on hand. We closed in April 2014 and they got the green card at the end of Oct 2014.

Purchasing MF but green card will take 2-3 months?

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