make repairs prior to closing to get C.O.? (as is cash sale)

[Spence O.]

So, Im closing on my first investment property soon which is in good condition. There are three minor holes in walls and foundation paint needs to be touched up in order to obtain a certificate of occupancy.

This is an as is cash sale. Should I make repairs prior to closing and inspection by the city in order to obtain CO even thoigj I dont own the property yet? Or should I have the city come and tell me what to fix which would make the property "fail" inspection then make those repairs to obtain CO.

The property is in trenton nj

[David Wright]

@Spence O. - A few questions:  How confident are you that this property is in good condition?  Do you have experience fixing and repairing houses?  

Playing it the safe way I would have the city come out and tell me what needs to be fixed.  And if you are confident that the property is in good condition, why not do it the safe way.

[Theresa Harris]

Are you sure that is all that is needed to get the certificate of occupancy?  I can't see touching up foundation paint being a requirement.  The smartest would have been to have the inspector come prior to closing to get a list of items that need to be addressed and have that as a condition of the sale.  This would have allowed you to determine what really needs to be done and how much it will cost.

[Spence O.]

Thanks for prompt replies. The city has a list of things needed to obtain CO, which include no peeling paint. They also require a roof, chimney and furnace inspection which my inspector told me all were in great condition.

Other things needed are fire extinguisher and an additional smoke and co detector. @TheresaHarris. 

Originally posted by @David Wright:

@Spence O. - A few questions:  How confident are you that this property is in good condition?  Do you have experience fixing and repairing houses?  

Playing it the safe way I would have the city come out and tell me what needs to be fixed.  And if you are confident that the property is in good condition, why not do it the safe way.

[Peter Tverdov]

Sounds like an easy one. My first investment property I had a 3 page list of things from the city and 2 pages from NJ (it was a 3 family). 

[Darren Sager]

@Spence O. why would you be doing anything as the buyer?  It's almost always the seller's responsibility to get the CO, or temp CO for closing.  Most towns have specific rules on this.  Unless of course the seller tried to put the onus on you and you weren't aware of this.

[Spence O.]

@DarrenSager the property is being sold as is and part of the sale is that buyer is responsible for CO.

[Andres Alexander]

@Spence O. The process I have observed is to have inspections come out prior to closing and they will provide you with a list of violations. Once you have completed the purchase you need to visit City Hall and "accept" the violations by completing a form where they will provide you an affidavit based on the occupancy of the property.

If the property is occupied you will have 90 days to address the violations and then you can schedule them to come out, re-inspect to provide you with the CO. They will either provide you with a Pre-Occupancy or a Final Occupancy Certificate or both. 

[Spence O.]

Thanks for the responses. I ended up making minor repairs and passed inspection.

[Larry Turowski]

Originally posted by @Spence O.:

Thanks for the responses. I ended up making minor repairs and passed inspection.

For very small items this might be worth the risk.  Due to the risk of the deal falling through--it has happened to me at the closing table--I wouldn't ever do any major improvements.  But I'd be willing to lose $300 to speed things along as you did.

[Spence O.]

Thanks Larry. Thats actually how much I spent.

Originally posted by @Larry Turowski:

Originally posted by @Spence O.:

Thanks for the responses. I ended up making minor repairs and passed inspection.

For very small items this might be worth the risk.  Due to the risk of the deal falling through--it has happened to me at the closing table--I wouldn't ever do any major improvements.  But I'd be willing to lose $300 to speed things along as you did.

[Darren Sager]

@Spence O. next time find out what the town requires.  In most cases, regardless if the seller tries to put the onus on you, the town won't allow it.  I've seen this a number of times, for example in South Orange, NJ.  Town will not allow a buyer to file such paperwork.  It's solely on the seller despite what they may put in the listing or in the contract.