Getting a GC for half-done properties with open violations

Rehabbing & House Flipping
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Getting a GC for half-done properties with open violations

Amy Davidson
Investor · Clearwater, FL · Member since 2013 · 69 posts · 38 votes

Hi all,

I've been struggling for months with this one. I have a property in Orlando, FL that I bought through a wholesalers/PM firm that said that they would handle the rehab and deliver me a lovely turn-key property.

I thought that all was fine, but two months after the tenants move in, I get a letter from Code Enforcement listing a number of past violations, the most important being that no one pulled permits for any of the work.

At this point, all the work had been completed.

The issue is, the workers the PM hired were not licensed GCs, and no one is taking any responsibility for the work. Naturally, I can sue the PM, but that's something for later. Now, I've called close to 30 GCs, including a family friend and a properly licensed GC that the PM recommended, and NO ONE will even look at the house because they don't want to be tainted as the bad guy who didn't pull permits.

So, my question is: There doesn't appear to be enough money in the world to get a GC to look at this house, how can I get Code Enforcement to not make me tear this house down and start over? Yes, I have spoken with the person in charge of this file every step of the way, and he knows how hard we're working to get someone to the house, but his response is along the lines of: "Hmmm, that's tough. You've already had two extensions."

Anyone have any practical advice? A nice success story from when you were in a similar boat?

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y

There is no "tainting" of someone coming in after the fact. They may just not want to get involved with something hard to estimate. You will have to submit plans, engineer stamped usually, for the work that was done, meeting building codes, apply for the permit, correct whatever work is not to code, then have it inspected. You may have to "open up", then repair, some of the work to inspect plumbing, electrical work, etc. that was done. What types of work exactly, were done without required permits?

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  • Account Closed
    Involved In Real Estate · Member since 2013 · 44 posts · 6 votes
    12y

    Amy,

    This is not what you wanted, but it may what you need.

    My dad is a licensed GC working in Florida for over 30+ years. He works for one of the top 5 largest home builders in the US, and we both live in Orlando.

    If there is anyone who has experienced everything in construction; it's him.

    If you'd like I can put you guys in touch, and he can probably give you sagely advice. You'll have to wait though because he LOVES to talk.

    If you're interested, write me with an email address or phone number (preferably phone number, he would prefer that method), and I'll have the pops contact you.

    Also, to further your post here, can you elaborate on what you mean by, "look at the house" ? Do you just want someone to certify that the work is done so you can get a CO? Or do you need someone to make corrections? Details please.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    There is no "tainting" of someone coming in after the fact. They may just not want to get involved with something hard to estimate. You will have to submit plans, engineer stamped usually, for the work that was done, meeting building codes, apply for the permit, correct whatever work is not to code, then have it inspected. You may have to "open up", then repair, some of the work to inspect plumbing, electrical work, etc. that was done. What types of work exactly, were done without required permits?

    1Reply
  • Amy Davidson
    OP
    Investor · Clearwater, FL · Member since 2013 · 69 posts · 38 votes
    12y

    Yes, "look at the house" was vague. Ideally, I'd really like someone to look at the work and certify that it was done properly, and then hopefully pull an "as built" permit, or redo anything that might not have been done to code.

    One side of the house will also need new siding because a plumber came in from the outside of the house to repair something, and then just left the house open. Something I've never seen before, and I can't believe the PM allowed...

    The total repairs included repairing rotten wood from termite damage, tiling, plumbing in both the kitchen and bath, but only replacement, no real moving of the pipes, etc. There were also other exposed beams, areas of the house that were fixed and look perfect now, but those are the areas that will probably have to be opened up again. The roof was repaired, but not replaced.

    I have the feeling that the inspector will give us the benefit of the doubt, because we found after the fact that the city of Orlando actually has experience with this PM company, but just the fact that no one wants to even many an appointment with us is making it difficult.

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    This is NOT going to happen. If that's what you're asking for I'm not surprised you're being told no. What can be done is for a new GC to pull permits and then REDO the work. Get the GC and the inspections to come have a look at the house at the start. Figure out what the inspectors want done. It is very likely that you will be required to dig up floors and open up walls so the inspectors can see what was done. This may be quite extensive or may be fairly minor.

    City inspectors don't like getting jerked around. Perhaps this wasn't really your fault, but it is certainly your problem now. Trouble is that you may also be on the hook for other changes that were made in the past.

    Read about my adventures in a similar situation.

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  • Amy Davidson
    OP
    Investor · Clearwater, FL · Member since 2013 · 69 posts · 38 votes
    12y

    Thanks Jon,

    I really enjoyed your post about your experience, which didn't come up when I did my original search.

    I had never really thought of the Code Enforcer as a friend before, but reading everyone's comments in that post made it clear how very helpful they can be, next time BEFORE buying the house.

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    12y

    There may be another option . In my area , a licensed engineer has the authority to over ride building inspectors , as long as he puts his stamp on the paper. yo may want to contact an engineer and have him inspect the house and see what can be done , a contractor may still be necessary , but an engineers stamp could get the work passed . ( you would need to apply for permits retroactivally )

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  • Brian Mathews
    Contractor · Round Rock, TX · Member since 2013 · 767 posts · 389 votes
    12y

    I've seen this happen a few times. The best thing to do is call the city and tell them your story. Be very nice with hat in hand. Ask the what you can do to make it right. Kiss their butts a little, find ways to compliment their knowledge and how hard they work. Make them the hero and you'll find they will help you out. Be very gracious to them. If they make a snide comment about how you should have known or followed up or whatever, just smile and tell them you know, you're learning, etc... Don't get angry at them, or you will be tearing the house down.

    1Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    12y

    I know this isn't the topic of your post, but I'm curious about the company that did the rehab and sold you this property turn-key. Did they provide a seller's disclosure indicating that they did the work legally with all required permits? Did you have a contract for the rehab work that specified everything would be done legally and within building department requirements?

    Hopefully you have recourse against this company...and hopefully you're not still using them for any part of your business...

    Podcast Guest on Show The Truth About Real Estate Investing in 2024 (What Investors NEED to Know)
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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    I had the same thoughts. Not sure if @Amy Davidson

    bought the property as is, then had the PM co. do the work, or if it was rehabbed prior to purchase. There would be two different areas of potential liability/disclosure issues depending on which way the transaction was done.

    0Reply
  • Amy Davidson
    OP
    Investor · Clearwater, FL · Member since 2013 · 69 posts · 38 votes
    12y

    I bought the house as-is and then had the PM do the work. But it was the same company as they have wholeselling and PM under one roof.

    I have pulled my other properties from their management, because they have not proven themselves to be generally competent. Once this is all said and done I'll see about my legal options, but now I can only think about getting it done.

    Anyone looking for someone NOT to hire as an Orlando PM is welcome to contact me off forum!

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