Code enforcement violations @ closing

[John Bastidas]

Hi all, 

I am getting ready to close on my second deal and its a whole sale deal that seemed to be awesome until i find out yesterday it has $100,000 fines in code enforcement violations since 2013. The wholesaler which is also a realtor stipulated that he is in the process of having the fines reduced by the county prior to closing and having the buyer pay those costs (lien) at closing. The county would then provide a document to new owner stipulating a specified time to make all the  corrections. I am looking at a 60 day rehab with most of the code violations being addressed.

Here are the violations:

-housing violations: roof, peeling paint, vent screen

-fallen tree branches

-THIS IS HORRIBLE! THE CEILING IS FALLING DOWN. RAT FECES ARE EVERYWHERE AND THERE IS EVEN RAT CARCASSES ALL OVER THE HOUSE. THIS IS A HEALTH HAZZARD! 

The contract i signed and my lawyer reviewed did state that the seller would be responsible for any liens. I can walk away with my 5,000 grand back. Deal or no deal?

Deal info:

Purchasing home at: 129,900

Rehab budget: 25,000

ADOM: 32

Current condition value (appraised in current condition): 139,000

ARV: 205,000 to 220,000 comparable within 1 mile