realestatefla1
04-02-2007, 04:05 AM
We`re dealing with a FSBO who purchased a home 4 years ago and did work on his roof,fence and shed without getting the proper permits.The title company called us two weeks ago informing us of these problems!
The seller naturally acts like it`s not a big deal. His attitude is that they`ll satisfy the issue and that`s that! Wrong! I made sure to send the FSBO a certified letter detailing that if the permits aren`t satisfied prior to closing than we`re out of the transaction.
I learned many years ago "NEVER EVER" allow the seller to escrow monies for permits! No matter what a Title Company tells you, if you`re involved with a home that has permit issues, make sure that everything is cleared!
Years ago, we were involved with a seller who failed to file for permits on his garage! The home was located in Miramar,Florida and the garage was converted into another bedroom, all illegally! The permit issue wasn`t disclosed when we originally wrote and later executed the transaction. By the time we resolved this problem it took an additional month to close.
The seller was adamant,that they did nothing wrong and wanted to escrow $3000 to clear up all "outstanding" permits. I kept telling my buyer that I thought the seller had more than one problem with his house and it turned out that I was correct!
The seller also put up his own fence without securing a permit as well. That was a problem in itself! We finally closed the transaction, the roof wound up costing the seller $5000 and the fence was an additional $2000 to complete!
On Saturday, I received a call from the FSBO who was attempting to sway me over to his side! It was quite comical.
The conversation is as follows:
Seller: I`m working on the permits,but I have a great idea. Why don`t we just put a few hundred dollars away for escrow and close?
Me: A few hundred dollars won`t matter too much. It`s going to cost you alot more to resolve and I bet you already knew that!
Seller: Huh? I`m working on the permits and the city assured me it`s only a few hundred dollars.
Me:Great! Than it`s you`re job to complete. The buyer agrees with me and we won`t be closing until this is finished you need to hurry. We close in two weeks!
Seller: What if I give you a bonus to help me? That way you can tell the buyer you`re working with me!
Me: That`s a conflict of interest. I never represented you on this transaction, you represent yourself,remember?
Seller: That`s unreal, that I`m offering you say $500 to help me and you`ll pass it up?
The fact is that when dealing with "Open permits" also make sure to document that the seller must "Clear" all permits prior to close or the deal becomes "Null and Void".
(http://www.browardbesthomes.com)
The seller naturally acts like it`s not a big deal. His attitude is that they`ll satisfy the issue and that`s that! Wrong! I made sure to send the FSBO a certified letter detailing that if the permits aren`t satisfied prior to closing than we`re out of the transaction.
I learned many years ago "NEVER EVER" allow the seller to escrow monies for permits! No matter what a Title Company tells you, if you`re involved with a home that has permit issues, make sure that everything is cleared!
Years ago, we were involved with a seller who failed to file for permits on his garage! The home was located in Miramar,Florida and the garage was converted into another bedroom, all illegally! The permit issue wasn`t disclosed when we originally wrote and later executed the transaction. By the time we resolved this problem it took an additional month to close.
The seller was adamant,that they did nothing wrong and wanted to escrow $3000 to clear up all "outstanding" permits. I kept telling my buyer that I thought the seller had more than one problem with his house and it turned out that I was correct!
The seller also put up his own fence without securing a permit as well. That was a problem in itself! We finally closed the transaction, the roof wound up costing the seller $5000 and the fence was an additional $2000 to complete!
On Saturday, I received a call from the FSBO who was attempting to sway me over to his side! It was quite comical.
The conversation is as follows:
Seller: I`m working on the permits,but I have a great idea. Why don`t we just put a few hundred dollars away for escrow and close?
Me: A few hundred dollars won`t matter too much. It`s going to cost you alot more to resolve and I bet you already knew that!
Seller: Huh? I`m working on the permits and the city assured me it`s only a few hundred dollars.
Me:Great! Than it`s you`re job to complete. The buyer agrees with me and we won`t be closing until this is finished you need to hurry. We close in two weeks!
Seller: What if I give you a bonus to help me? That way you can tell the buyer you`re working with me!
Me: That`s a conflict of interest. I never represented you on this transaction, you represent yourself,remember?
Seller: That`s unreal, that I`m offering you say $500 to help me and you`ll pass it up?
The fact is that when dealing with "Open permits" also make sure to document that the seller must "Clear" all permits prior to close or the deal becomes "Null and Void".
(http://www.browardbesthomes.com)