Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago,
[NJ] Responsible for obtaining CO on fixer upper property
Im in the process of buying a new primary residence. The house is being sold by an elderly couple in strictly as-is condition. It's in pretty rough shape but we plan on going in with a crew on day one and remodeling (this will be our first project home).
In negotiations they've agreed to certain concessions but have stated that we are solely responsible for obtaining the CO at our own cost. We have no problem with this since we knew we were getting an as-is home, I'm just not sure the best way to approach this. The house is likely to fail the inspection in one way or another.
The township says the CO must be completed before closing
My realtor (who actively invests in this town) says don't worry about it an apply for the CO once you finish your work before moving in.
My lender says they dont care and will finance with or without the CO.
My lawyer says its up to us - they'll just run an open permit search to make sure there's nothing outstanding.
I feel like i'm getting alot of mixed info and really dont want to go down the rabbit hole this early in our first project home.
Should I apply for inspection on behalf of the current owner and if it fails I at-least know what I'm on the hook for?
I obviously wont be making any repairs in order to pass inspection until I own the property so will this effect my closing in any way?
Id also prefer to not have the inspector there before/after our renovation if unnecessary.
Outside of an open permit search, is there anything else done through the CO process that I could end up being liable for if we hold off on doing it?
Thank you in advance.