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Bought A Home Without the Certificate of Occupancy - Landlord Forum thread 140817

Bought A Home Without the Certificate of Occupancy by Anonymous (New York City) on May 27, 2007 @21:16

                              
It is a new-construction home. I was not aware that I could not rent the home to tenants without the C of O and now my first mortgage payment is due on July 1 and I'll be screwed if I have to pay the entire high mortgage by myself for that 6 months when I do receive the C of O.

The lawyer that represented me said that I would not receive the C of O until 3 to 6 months and I signed a document stating that the seller placed $20,000 to the bank attorney's escrow until I do receive the C of O. However, I do have 3 construction signoffs on the house.

My question is this: In NYC, is it illegal for anyone to live in a new house without the C of O? Is so, I believe I was scammed.

If I was scammed, do I have grounds to sue my lawyer for malpractice and my real estate broker for selling me a home without this certificate?

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Re: Bought A Home Without the Certificate of Occupancy by MyPropertyMyRules (NYC) on May 28, 2007 @07:17 [ Reply ]
From the Department of Buildings Website -

About Certificates of Occupancy
A Certificate of Occupancy (CO) documents the legal use and/or occupancy of a building. If planned construction will create a new building, or will result in a change of use, egress, or occupancy for an existing building, a new or amended Certificate of Occupancy is necessary.

A FINAL CERTIFICATE OF OCCUPANCY WILL BE ISSUED WHEN THE COMPLETED WORK COMPLIES WITH THE SUBMITTED PLANS AND APPLICABLE LAWS, All paperwork is completed, all necessary approvals have been obtained from other appropriate City agencies, all fees owed to the Department are paid, AND ALL RELEVANT VIOLATIONS ARE RESOLVED.

A NEW BUILDING CANNOT BE LEGALLY OCCUPIED UNTIL EITHER A FINAL OR TEMPORARY CERTIFICATE OF OCCUPANCY HAS BEEN ISSUED.


To Obtain a Copy of a CO
To obtain a copy of a CO, visit the Department’s Customer Service Counter in your borough office or log on to the Building Information System (http://nyc.gov/bis). Select the "Enter BIS" button, type in an address, then click the "View Certificates of Occupancy" link on the Property Profile screen.


Checking the Status of a CO
Our website has a step by step guide
(http://www.nyc.gov/html/dob/downloads/pdf/
bis_web_ref_co.pdf)

Checking the Status of a CO
Our website has a step by step guide (http://www.nyc.gov/html/dob/downloads/pdf/
bis_web_ref_co.pdf) that you can use to:

Check the status of a CO
View the outstanding requirements to obtain a final CO
View the inspection history of work performed
Review specific work orders
Buildings built before 1938 are not required to have a CO.

If a building was constructed before 1938 and there has been no change in use or additions to the property, it may not have a CO.

If you require proof of the legal use of a building that does not have a CO, you must obtain a "Letter of No Objection" from the Department of Buildings' borough office where the property is located.

What is a Temporary Certificate of Occupancy (TCO)?
A TCO has an expiration date, usually 90 days after its date of issuance. This means that while the Buildings Department has determined that the house or apartment building is safe to occupy, the approval is only temporary and is subject to expiration.

Homeowner Tips: The Department strongly recommends that you negotiate a closing based on a final CO, not a TCO. If you purchase a co-op, condo or house that has a TCO, you should consult a licensed architect or engineer to determine what work has to be done in order for the building to receive a final CO. Once you purchase a property, you, as the owner, have the legal obligation to make sure that the building obtains a final CO documenting its compliance with the Building Code and the Zoning Resolution. Because this is your responsibility, you should ask your attorney to obtain written assurance and sufficient escrow from the seller/developer to ensure that the developer actually finishes any outstanding work and obtains the final CO in a timely manner.

Print this Certificates of Occupancy Fact Sheet (120 kb).

Important Note: If a TCO expires and is not renewed, a new buyer may find it difficult or impossible to renew homeowner's insurance policies or to sell or refinance the new home.

Re: Bought A Home Without the Certificate of Occupancy by MyPropertyMyRules (NYC) on May 28, 2007 @07:27 [ Reply ]
Was looking here.

HOMEOWNER TIPS:

THE DEPARTMENT STRONGLY RECOMMENDS THAT YOU NEGOTIATE A CLOSING BASED ON A FINAL CO, NOT A TCO.

If you purchase a co-op, condo or house that has a TCO, you should consult a licensed architect or engineer to determine what work has to be done in order for the building to receive a final CO.

ONCE YOU PURCHASE A PROPERTY, YOU, AS THE OWNER, HAVE THE LEGAL OBLIGATION TO MAKE SURE THAT THE BUILDING OBTAINS A FINAL CO...documenting its compliance with the Building Code and the Zoning Resolution.

BECAUSE THIS IS YOUR RESPONSIBILITY, YOU SHOULD ASK YOUR ATTORNEY TO OBTAIN A WRITTEN ASSURANCE AND SUFFICIENT ESCROW FROM THE SELLER/DEVELOPER TO THAT THE DEVELOPER ACTUALLY FINISHED ANY OUTSTANDING WORK AND OBTAINS THE FINAL CO IN A TIMELY MANNER.
__________________________________________________________


Do you have a "temporary CO", or nothing at all?

Re: Bought A Home Without the Certificate of Occupancy by Anonymous on May 30, 2007 @01:19 [ Reply ]
In my area, it isn't unusual to rent a place without a C of O. Once found, the city will insist on the full inspection and levy a small fine for not obtaining it. More fines will be levied if the building is found to be in major violation. However, if the building is up to code, the fine in my area is so low, many just don't wait for the C of O and prefer to face the small fine rather than lose the income. I image NYC would be a much higher fine!

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