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All Forum Posts by: Diane Quigley

Diane Quigley has started 2 posts and replied 2 times.

Post: CU report not provided timely - contingent attorney desired

Diane QuigleyPosted
  • Flipper/Rehabber
  • Miami & Chicago
  • Posts 2
  • Votes 1

I purchased my first fix n flip house in Miami FL and the bank did not give me the CU report timely. I could argue over $50K in damages to cure violations. I am looking for an attorney that would be interested to pursue this on an contingency basis.

I am also continuing to run into this problem over and over again where the asset manager at the bank is delaying the ordering of the CU inspection report (on purpose) until very close to the closing date.  This is in violation of Ordinance 08-133 which requires the bank to provide the Certificate of Use inspection report before they are even able to offer the price for sale.  Violators of the ordinance can be assessed a $10,000 fine if they do not comply, but that fine does not help the buyer to cure the violations that were slapped on the property after they buy the house.  

Keep in mind also that the violations did not exist at the time of closing. After the CU report is completed, the report is then publically filed with the Miami Dade clerk of courts.  Then Code enforcement uses the information in the CU report to start issuing code violations (usually within 10 days of the CU report being publically recorded).  It seems the bank is acting fraudulently by intentionally withholding information that should be provided to the buyer well ahead of the closing date.  

Then, what happens is that at the last minute, in order to proceed with the closing, the title underwriter requires the buyer to sign a Hold Harmless (HH) waiver.  Since buyer thinks that they already know most of what is wrong with the house, must buy the house in AS IS condition,the buyer ends up signing the HH waiver.  It is not until much a later that the CU report ends up creating violations on the house that the new buyer is then stuck to cure.  Curing the violations also generally requires opening many permits to cure and close them all. Whole process and intention of the Ordinance is not being followed properly. I am wondering if there is anything that can be done about it?

Post: 12094 SW 103rd CT, Miami FL 33176

Diane QuigleyPosted
  • Flipper/Rehabber
  • Miami & Chicago
  • Posts 2
  • Votes 1

Investment Info:

Single-family residence fix & flip investment in Miami.

Purchase price: $514,500
Cash invested: $135,000
Sale price: $760,000

My first fix n flip in Miami, FL. The property is also located very close to my home, which is generally what I prefer when pursuing new projects.

What made you interested in investing in this type of deal?

Property had character, beautiful woodwork, custom doors, high vaulted ceiling, nice big yard with Tiki hut and outdoor grill. Lots more...

How did you find this deal and how did you negotiate it?

Auction website - Xome.com

How did you finance this deal?

78% self directed 401K (tax sheltered) + 22% HELOC (personal funds)

How did you add value to the deal?

Daily on site supervision, shopping quotes for best prices, evaluating construction talent and building my new team around me which included a combination of skilled and unskilled labor.

What was the outcome?

Great outcome. House sold very fast, but then we experienced some delays due to a CU report that resulted in violations to be placed on the property after I bought the house. Violations took some time to cure and given work required to cure the violations, I was able to negotiate that the new buyer provide a buyer credit in order to help pay to cure some of the violations. The buyer also benefited because they were able to add a new tile roof for 1/2 cost. Working together, best result!

Lessons learned? Challenges?

Always get the bank to do the CU report at least 10 days before you close. There is an oridinance that requires the CU report to be issued BEFORE the property is offerred for sale by the bank, but the banks do not follow the ordinance and instead risk the $10K penalty by not complying with this law that is supposed to protect the buyer of a foreclosed home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the agent and owner. I sold the house within weeks of listing it and on the very first open house that I conducted. I get the job done and prefer to list my own houses to help ensure the property is presented in the best possible light and moves quickly.