Need advice, Permanent Injunction by City of Columbus

[Chris Brown]

This is my first post so I’ll try to keep it as succinct as possible. 

We’re in contract to purchase a 4-unit in Columbus, OH. About 2 weeks after our offer was accepted, my bank called and notified me that they discovered a permanent injunction against this property. I came to find out that an undercover police officer purchased narcotics in one of the four units. The injunction was not disclosed by the sellers prior to my offer. This permanent injunction requires the owner of the property to comply with 5 ongoing requirements.

• 1) Security cameras and lights had to be installed and maintained
• 2) A lease specified in the injunction must be used moving forward
• 3) Owner shall not rent to anyone with a felony
• 4) If another drug but occurs then the property will be boarded up for 6 months
• 5) All leases must be submitted to the City if requested

Since the discovery of the injunction, my stance has been that I will not complete the purchase unless the seller is able to successfully petition the city to have the injunction lifted. The seller initially tried to explain it away but then agreed to have their attorney petition the city to have the injunction lifted. Apparently, the city verbally agreed after a month. When it came time for the judge to sign the document, the judge declined citing that the city would have no recourse if the injunction was lifted and then the purchase fell apart and these sellers held onto the property.

Any suggestions? And does anyone have a referral for a real estate attorney in Columbus? Currently, the seller’s attorney suggested putting together a “Letter of Intent” stating the city would agree to drop the injunction upon the sale of this property to us. I'm trying to figure out how bad the downside could be.

A few further details to add some context. This property is in a low-income area but on a reasonably safe, heavily travelled street off I-70. For those of you familiar with Columbus, it’s in the Hilltop near Westgate. This property was listed originally in August and we lost to another offer. The sellers claim they fell out of contract with the first buyer due to the buyer losing his job unexpectedly. We’re in contract for under $170K and has the potential to cash-flow very well. There was not any manufacturing of drugs, only distribution.

[Chris Seveney]

Why would you want the property ? While numbers on paper look good these properties are typically more of a headache than anything else