Closing Tomorrow - Just Learned House is Condemned!

[Account Closed]

Hi BP Friends! 

You have yet to let me down and I am once again, as a beginner, asking for your help! 

I am scheduled to close on a property tomorrow. I contacted the city's electric company to start service and was told the electric meter was removed, but she'd inquire with the city to get it back in. She later contacted me stating that the city's building inspector would not be approving the start of electricity because "the house has been condemned and is supposed to be torn down." If the city knows of this, wouldn't the seller (PNC Bank / Auction.com) know of this? Is this grounds to cancel the contract? The property was listed as a house with square footage and a bedroom, not as land-only. We are scheduled to close tomorrow. State: WI

Please let me know your thoughts!