How do I obtain details about Lien/Code violations??

Question

Hi guys,

I am currently looking at a small multi family property in Fort Lauderdale, FL and in the desciption ist says that the property has lien/code violations. I have tried getting in touch multiple realtors about this and I have had no luck.

I have heard that title companys can assist me with this but, do I have to pay a title company every single time I just want to look/run numbers on a  potential investment?? Is there a way that I can do the leg work in finding this out myself??

Also, what do potential leins/code violations stem from??

Thanks all.

Rebecca Knox · Answer

I am from Milwaukee too and we have great resources for finding this information on line for free.  Liens and code violations stem from the condition of the property. The city will fine the owner and give them a certain amount of time to repair the non-conformance and re-inspect. As for liens, here in Milwaukee, if you sell a property any unsettled small claims judgments have to be taken care of prior to or at closing....that can be city taxes, old utility bills, medical bills, etc.  Also, if the seller was quit claimed the property, you have to worry about the person that they did the quit claim with, because their liens/judgments may cloud title to.  This is how it works in Milwaukee but I'm not sure if that's how it works in other municipalities.  For me, I look up all this info in the evaluation stage because it will save a lot of time in the long run and you won't be pursuing leads that won't be able to close. The only thing I can't find out for free is Federal lien info and that actually just happened on a deal of ours that fell through at closing because the seller had $100k in federal tax liens. In your situation, if the property is a listing, I would think the realtor should be able to provide that information.

Ivan Vargas · Answer

Find owners name by address search: http://www.bcpa.net/RecAddr.asp

The seller may or may not clear all liens prior to closing. Have your agent put that in section 20 of your offer and see if they accept. If they don't want to cover that they won't accept your offer. Also ask for 10-15 day inspection period to make sure you get all the facts before you are fully committed to buying it. If it turns out the violation is for something minor fine but if its a sewage/sanitary code violation where you have to excavate and run new sewage pipes you may want to get out of the deal and get your deposit back.

After closing, any violations will continue to accrue daily fines until corrected (in Palm Beach I've seen $100/day). So if you buy this property you'll need to hurry up and fix whatever it is or you'll rack up a lien pretty quick. If you get a lien they can foreclose on you just like a bank. Won't happen overnight, but add that to your rehab costs and it may not be that good of a deal.

Crystal Smith · Answer

We have family in Palm Beach so I took a look & Fort Lauderdale has an on line resource to check for current code violations.  Title companies don't normally check on Code violations.  You have to check w/ the City Building Department.  Here's a link to the Site:  City of Fort Lauderdale Code Violations  There are probably some people in the building department you can call as well.

Regarding liens:  This should come up during Title Search.

Ivan Vargas · Answer

As for the listing agent sending you all the info yes that is normal. If he wants to sell he will cooperate with the buyer and provide any information he has available. Surely they pulled all that info from the county if its bank owned so he would only have to email it to you.

Those violations are adding up daily. Especially the fence... at least $100/day for that one alone unless they removed the fence and cleaned up the garbage. I cannot speak for the discount since I have no experience with those negotiations but I would assume that it must be possible as long as you show that the problem has been corrected.

What you need to confirm is whether the bank will convey clean title or if you will be buying subject to. If the liens are 100k and the purchase price is 100k seems like they won't be clearing those liens prior to closing.

A.R. Coningsby · Answer

Hey guys i spoke with the realtor and there is over $100K in lien/code violations for a property that was only listed at just over 100k.(realtor sent it all to me via email free of charge having never met me before. Is this noramal??) Something with the fence, lack of water meeter, and garbages. A bunch of homeless people were living on the property illegally and much of the violation costs stem from that, I'm hearing. Wayne Brooks you mentioned that they will usually settle for 10-20% of the total. In you opinion, do you think this situation with the homeless people causing the violations While it was bank owned will warrant these violations being reduced to 10-20% of the total?

Gautam S. · Answer

@A.R. Coningsby  - Not sure if you have already requested  the info from City via  FOIA request ( Freedom of Information Act). Most of the city must comply to a FOIA request for any property.

Check with village/city office.

Cheers!

Nicole Wood · Answer

just call your town or city and ask. I did today for an upcoming tax auction and just have to go to the assessors office anytime during the week to look.

A.R. Coningsby · Answer

Also if the bank has owned this property am I still responsible for the lack of upkeep that has lead to these potential lien/code violations??

Is it possible to negotiate the liens, reduce, or eliminate this with the bank before closing?

And/or are the code violations negotiable with the city? Before or only after closing?

How do I obtain details about Lien/Code violations??

Most Popular Reply