Wholesale w/ Code Violations

[Johnny P.]

I have a property under contract but have found out there are multiple code violations on the property. Estimates to fix the violations are in the 5k range. I also have an end buyer who has made a nice offer on the property but according to the title company we can't close on the deal until the violations are all cleared up.

Is there any way around this? Maybe a creative way to structure the deal?

[Steve L.]

Originally posted by Jaremy Moritz:

First thing I'd do is call some other title companines and see if they can close the deal without the violations having to be cleared up. You might also contact an attorney to see if that's state law or just title company procedure.

Here in TX, we are able to close on properties with violations. I just did one a few weeks ago. Laws might differ from state to state, though.

Call Title and ask what documents you would need to sign to take the property Subject to the Violations. Usually, they will pull out an Indemnity Agreement that releases them of liability for those Title Flaws.

Some cities, simply won't allow a transfer, but most do.