Buying or Selling a Home/Patio without building permit to a foreclosed property
Expert: Ted Lewis - 1/13/2012
QuestionMr. Lewis,
I bought a as is foreclosed property in Jaconville, Fl on 20 Aug. 2011. AFter the closing, I found out a patio in the back yard was built without city permit. The city's code enforcement office post a Safety Flag on this patio. Because of this safety flag, the city will not transfer the water/power supply under my name. The city said no one should legally use the water/power of the property due to the safety falg.
The safety flag was posted by the city on July 02 2011, before closing date. City inspector told the listing agent to inform this situation to potential buyers.
According to the listing agent, the copy of Permit Violation notice was scanned and posted to the listing of this property. Only licensed real estated agent can view this listings. I was only able to view the general listing of the property that can be viewed by the public. I didn't see any Permit Violation info on the listing I viewed. I didn't know there was Permit Violation on the property before I bought it. I did know there were some damages and mulfunctions of the property, such as leaking plumbing, old A/C, etc...They called it "as is".
Neither my agent nor listing agent informed me by words or in writing of the existence of the Permit Violation/Safety Flag on this property.
My agent signed her name as Seller's agent in closing documents. She said she didn't know anything about the Permit Violation/Safety Flag before closing.
I didn't hire any inspector to inspect the property before closing. Property Survey was not supplied to me by closing agent because it is a foreclsoed property, according to my agent.
City's code enforcement office told me I need to either tear the Patio down, or hire a licensed contractor to pull a Permit on the already built Patio.
Here are my questions:
1. Is the Permit Violation considered as "as is" condition, according to law?
2. Should listing agent (who knows the existence) and seller agent (who can view listings for licensed agents) expose the Permit Violation to the buyer, according to law?
3. Am I eligible to ask city to issue a Permit, or do I have to hire a licensed contractor to do this, according to law?
4. What could be the reason for a buyer's agnet to sign her name in closing documents as Seller's Agent? Is it required by law?
5. The closing agent, which is a law firm, didn't indicate any existence of Permit Violation/Safety Flag in title search and title insurance. Do they hold any legal responsibility in this?
6. Do I hold any legal responsibility because I waived the inspection before closing?
7. Am I in a position to sue listing agent, Seller's agent, and closing agent?
Thanks a lot!
Lisa
AnswerVery complex question with many answers.
The easiest way to handle this problem is to do what the building dept. wants you to do -- pull a permit and correct the situation, whatever it is. If this involves a contractor, so be it.
This may be the easy way out, depending what kind of a deal you got on the place when you bought it.
Fix the problem and see what it costs, if it is not much, call it a learning experience -- welcome to Real Estate.
If the fix becomes expensive, look to who you can blame, small claims court is always good.
As far as the Lawyers and RE Agents go, most are incompetent as you are finding out.
Good Luck.