Hello,
I will be showing a foreclosure tomorrow. It's listed as a 4/2 property records show 3/1. How is that worked out if she decides to purchase? The addendums do not specify who is liable for violations. I know it's "As Is", but when a violation like this shows what are the steps? The foreclosure I previously closed had a code violation but it was not for something like this, it was for dogs & the bank took care of it. The square footage did not change.

Thanks.

are you sure there is a "violation"? the MLS and the tax records can be wrong. the bank's addendum usually states that the buyer is responsible for verifying all property information.

In CA is common to see "illegal additions" ultimately the buyer is the one who decides to purchase like that or not. Sometimes the square footage is not added by the current homeowner in order to avoid to pay for the permits. Don't show it! if is going to give your client a shock.

Don't rely on the tax records. I did a BPO the other day on a 2 year old home, tax records said 2 bd, 2 ba; it was a 3 bd, 2.5 and no addition was done, just miscounted. Look at the house first and then make you decision, check with the planning & zoning dept to see if an actual permit was pulled and was it finaled and signed off on for occupany, if it was an addition.

Ok thanks. I will check it out tomorrow.

Yes, it's also common in south Florida. In my area, the city will come out & inspect the property before closing to make sure there is no illegal efficiency on the premises. Without them looking & signing off on the property, there is no closing. It's only in this particular city because everyone decided to built an efficiency illegally. They don't like to spend the money but in the long run it hurts them.

could just be a typo on the tax records...

I can only answer this an an Appraiser. No permit, No credit...

interesting, is the efficiency unit usually intended for accomodating retired folks, in-laws, etc?

Shana,
People built these for extra income. They rent them out for $600+ & it includes utilities. It got out of control because so many were built w/out permits. The old mayor did not care but once he left office the new one got tough on these constructions. Now they check all properties before closing.

I went to show the property, it is larger than tax roll. I know the area & know the size & structure of the homes. There is a large room added that was part of the yard. My buyers can't afford it because the upgrades are not finished, actually the house needs to be redone inside. It's a great investment for someone that has the funds to fix it up because it's in a great area & the price is $219k when they are closing over $300k good sales.

Again, I go back to my original question, what happens to properties that have illegal additions? Do you tear them down? Pay the violations?

Thanks for all your input.

I just spoke to the city's bldg & zoning. She stated every situation is different, sometimes they make you tear it down other times you pay for violations etc... It's a risk you have to take & not a good one.
If you have had experiences like this please advise.

Thanks.