Closing with Open CO's

Someone please explain to me the risks involved here? Aside from a bank not approving the mortgage

Re: Closing with Open CO's

the real risk is why the bank wont do it

the work might not be done properly

the work might not pass inspection

you might not ever be able to get a C/O

it really depends on what the work is - a deck vs a full dormer to assess the risk

so let's say it's a dormer- 2 bedrooms and a full bath was added- so now a 2 bed/1 bath house is now a 4/2

the bank lends you money for the 4/2

but you can't get a C/O....so in reality you a 2/1

if it's a deck/Shed- it's not normally a huge deal

Re: Closing with Open CO's

i guess if ever the town found out then you would be responsible for getting the permit and the costs- this happened to us, we closed on our house last June, but there was still an open permit for our fence that the sellers never closed out. We made sure that we put in the contract that the sellers were to leave money in escrow (we figured out how much the cost would be approx if we ever had to move/replace the fence) and that the sellers had to get a CO on the fence by 4 months later, otherwise that money in escrow would be ours.

Re: Closing with Open CO's

Did this. We have 2 open CO's. One is for a shed.

The other is for a converted room in the house. My house was always a 4/2.5 but they made one of the rooms a loft. They took the attic out to do this. I think as long as we put railings up, we wouldn't have an issue getting a CO.

We aren't worried as this is our "forever home"

Re: Closing with Open CO's

we bought a house with an open CO for a converted garage. at the time of the closing, the seller was working on getting the CO and they put money in escrow. since we've moved in, the lawyers have stayed on top on it and we had to let an inspector come in twice, but now it's fully approved and we have the correct paperwork. it really wasn't a big deal in the grand scheme of things.

Re: Closing with Open CO's

I heard that its possible for the Town to come after the new home owners for back taxes owed...is that true?

FTR: its for an expanded garage and an upstairs bathroom.

We know the taxes are going to go up but we don't know by how much yet

I'm just a little worried that we're gonna do all this work and then we're not going to be able to close OR we close and then get SLAMMED with a whole bunch of unforeseen costs