About to close and discovered 3 hefty code violation fines

[Danny Maller]

I was scheduled to close yesterday until my attorney discovered last minute that there were 3 building code violations on the property. It's a brick 2 flat with a finished garden unit in which I plan on occupying, until this discovery. The violations are:

1) 2004, $3,000 

• Code 157017 - Repair or replace defective soil pipe. 
• Six other small things like working smoke detectors, and replace windows here and there
  

2) 2009, $0.00

• Code 169017 - Repair or replace house drain to receive and convey discharges from plumbing fixtures to sewer.
  

3) 2013, $0.00

• Code 169017 - Repair or replace house drain to receive and convey discharges from plumbing fixtures to sewer. (appears not remedied)

So when we discovered these violations and fines, the seller insisted several times that they were paid off. We requested the dismissal paperwork which their attorney literally said, "Your client is asking for a unicorn," claiming no such paperwork exists and we were foolish to think a receipt was necessary for these violation fines. My attorney did some digging and we found the paperwork showing they in fact did not pay these fines at all.

We don't know why the amount on the second two violations are set at $0.00, and while I can begrudgingly pay off the 3k fine because the seller won't budge, I worry the second two have just not yet been set. Considering the first $3,000 fine is comprised of seven different $500 fines, I would guess these two would be $500 a piece as well? This property is in Humboldt Park, Chicago.

I was feeling super confident in this purchase until these mysteries popped up. If the seller lies about paying the fines, what else are they hiding? There is a lot of repair work I knew about going into this around $15k but this might put it over the top if those $0.00 fines turn into an actual number. My attorney is trying to find ways to make it work with lender credits to offset the fines if I pay them, but I feel like the deal has turned sour.

What are your thoughts? Very much appreciated.