About to close on a property, was just notified the city has condemned it.

[Dustin Li]

Out of state investor here, first time investing in the Columbus market. I am currently under contract for a property that was recently renovated. Inspection checked out without major issues. I had someone on the ground drive by the place couple days ago. It seems City of Columbus put a red sign in the front stating the property was unsafe to occupy and that should only be entered for repairs or demolition (I assume this means the property is condemned). Obviously I immediately called my local agent (who is great), and they followed up with the seller agent who is looking into this. I am going to strategize with my agent this week but wanted to seek advice here. I am not experienced in this unique situation, nor am I experienced dealing with the City of Columbus: 

1) Advice on what to do in this situation? Next steps and ensuring if i do close that the city has actually rescinded the condemn notice and it isn't the seller removing the sign. 

2) How efficient is City of Columbus? I am debating extending closing to allow seller to resolve this or just walking away from the deal.

3) Any speculation as to what the issue might be to result in this?

4) Should I notify my lender and other members of my team? (Currently only my agent knows). 

[Steven Foster Wilson]

Quote from @Dustin Li:

Out of state investor here, first time investing in the Columbus market. I am currently under contract for a property that was recently renovated. Inspection checked out without major issues. I had someone on the ground drive by the place couple days ago. It seems City of Columbus put a red sign in the front stating the property was unsafe to occupy and that should only be entered for repairs or demolition (I assume this means the property is condemned). Obviously I immediately called my local agent (who is great), and they followed up with the seller agent who is looking into this. I am going to strategize with my agent this week but wanted to seek advice here. I am not experienced in this unique situation, nor am I experienced dealing with the City of Columbus: 

1) Advice on what to do in this situation? Next steps and ensuring if i do close that the city has actually rescinded the condemn notice and it isn't the seller removing the sign. 

2) How efficient is City of Columbus? I am debating extending closing to allow seller to resolve this or just walking away from the deal.

3) Any speculation as to what the issue might be to result in this?

4) Should I notify my lender and other members of my team? (Currently only my agent knows). 

 If the property was recently renovated then it is more than likely a permitting issue or some sort. I would allow the seller time to remedy the situation, especially if you believe it to be a good deal. IMO anytime you notify a lender, the deal becomes 10x more complex or just dead overall. Their underwriters don't like anything that doesn't fit in the box, even if it is bound to be fixed.