When planning to sell a home, there are a number of steps to take beforehand that will make the process smoother and less stressful.
Step 1: Locate Important Documents:
- Deed – The deed will outline exactly how the title is held and include a property description, which will be needed at the closing, for the new deed.
- Survey – The survey will provide the exact lines of the property and whether there are any encroachments—either onto or by—the property being sold. It will also indicate whether any issues exist, such as a common driveway with a neighbor. Having an existing survey may also save the buyer the cost of ordering a new survey.
- Title report – The seller should have been provided with a marked up title report at the time of original purchase. This means that any items that are no longer a lien on the property were marked “omit” in the report, meaning they are no longer against the property/premises.
- Title policy – There should also be a title policy that shows what liens, if any, are currently against the property.
Step 2: Visit the Department of Buildings
Before selling, a visit to the local Department of Buildings will confirm whether the property has an existing Certificate of Occupancy (CO). The CO is the town’s legal permission to reside on the premises. It’s possible that the home predates the requirement, in which case the town may provide a letter saying that the house predates the need for a CO.
Building Department records will also indicate any open permits for additions that were completed by the current or previous owner(s). Sellers may be surprised to learn of the changes that some towns require for a CO, such as adding a tool shed or a patio. A CO is definitely needed for any additional rooms or decks that have been added. The lack of a CO at the closing, or a change to the original home or property, can be a major problem that could delay or postpone the closing.
Step 3: Consult an Attorney
The last step in preparing to sell a home is to consult with an experienced real estate attorney who is familiar with the local building department, their requirements, and with the various types of liens against the property.
Are you preparing to sell your home? If you are looking to sell and in need of guidance, please contact me.
Robert W. Shaw, Esq.
(914) 328-1222
E-mail Bob
Tags: Certificate of Occupancy, Property, Real Estate, Robert Shaw
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