Can a city refuse to allow a property transaction?

[Jennifer Sowers]

Hello,

I am looking at a commercial property that has septic issues. The septic is located on the neighboring property which is also for sale. The county is in the process of bringing a sewer line to both properties in the next two years. 

My question is, can the county keep a buyer for both properties from moving forward with a sale prior to the new sewer lines being installed?

Thanks!

[Henry Clark]

@Jennifer Sowers

Couple separate items.  Looks like you have another post on this same property noting it as a restaurant and being under duress from the second property's owner that you might buy from.

1.  Does your property have a recorded easement onto the other property for both having the septic system and being able to maintain it?

2.  Normally septic systems have to have certain setbacks from buildings and waterlines.  Is your septic in conformance with your jurisdiction's rules?  ASK quietly, don't give your name.

3.  Personally, if I wanted to buy both properties:  a.  Get your own Buyers Broker, don't go through either broker, b.  Have your Buyer broker put through an offer on your location for a significantly lower price, subject to the above Septic system easement existing or not.  And the future cost of connecting., c.  On the other property I would sue them.  Talk to your Attorney.  Whether it is for Slander, harassment, access to the septic system, doesn't matter for what.  This will make it next to impossible for them to sale., d.  Then be the NICE person and make an offer on both properties, noting that all of the issues will go away under common ownership.  Again, make a low offer on the second property to both resolve the current septic system issue and also future connection fees.

4. As noted above, put a restraining order in place. First before you sue them.

5.  Your lender might not approve the loan, if your septic systems are out of code, unless they are grandfathered in.

6.  Connection Cost- keep in mind that is the cost from the City/County for connection.  If this is under sidewalks and parking, it could cost a lot more than just the connection fee, since normally septic systems run to the back of the properties and City sewer runs to the front.  Your $15,000 connection fee could have another $20,000 of plumbing and parking costs on top of that.  For both buildings.

7.  If you buy either building recommend you have someone inspect what it will take to get up to code.  Especially if these are old buildings and you are running a restaurant.  ADA access, ADA bathrooms, Abestos, Fire suppression, fire hydrants, parking spaces, Ventilation, etc.  Use this in your offer.  Make sure the other Sellers Broker is aware of these issues.  Unless they are unscrupulous, they will need to disclose to future buyers.  They in turn will push the Seller to lower the price.  Let them do your work for you with the seller.