1004D final inspection for new construction

[sputnam]

Do your inspection. Report what you find and include your invoice. I had to 'teach' builders and lenders the hard way more than once thaf finished means complete. It doesn't mean 'it's about finished'. If it's not 100%, it's not your problem. Depending on lender requirements, they will either send you back (another fee) or escrow for what remains to be done. The CO isn't your problem at all... unless the Client has asked you to make sure that it's been issued.

 

[Carnivore]

During Construction there are Code Compliance Inspections, i,e Plumbing, Electrical etc. The Builder can not button up those areas until the Code Dude/Dudettte signs off. Loan Construction Draws are pretty much aligned with the Code Inspections. Lenders send out Appraisers as follow up and report that progress to the lender for release of the next Draw.

Homeowners who are doing there own build the Draw Inspection List has more steps. General Contractor Draw List is much shorter. Makes Sense Right!

Often, there are scheduling problems with the Municipality Code Inspections. For Example one of the Code Requirements is to Pressure Check Water and Natural Gas Lines. The Sub-contractor installs a Pressure Gauges. I don't know the time elapse period but what ever it is the Code Inspector Checks that.

When it comes to a Final by the Municipality the Final Code Dude Reviews the entire File to make sure all interim Inspections have been completed. If everything is Cool then the Final Dude goes out to the House and does Final. If all things are in order they tell the General contractor or representative and often has the contractors copy of the CO with him/her and goes back the office and Files the official CO.

The Question: If your Report is for FHA New Construction and you go out and all Utilities are on, the house looks complete, including appliances etc . You take Pix of Exterior and Interior etc, Well Your Good to Go. Even though you did not see the CO.

This Link is an interesting Read. CO's Vary as you will learn from the article

What Is A Certificate Of Occupancy and Do You Need It? | Angi

Your local building department keeps an eye on the homes in your area. Ensure you're living in a safe and up-to-code space by obtaining a certificate of occupancy. Learn more about one here.

www.angi.com

From the Article: "

Building a New Home​

All newly constructed homes or living spaces must receive a certificate of occupancy from the state or municipality for completion. In most cases, the mortgage lending company requires a CO to approve a loan so you can pay your construction team.

The certificate inspection process ensures the final construction matches the original plans submitted in the building permits and meets all building codes for livability.
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One Last Comment. I absolutely DO NOT do any Finals etc for any Appraisal that I did not complete. That's very Risky. I don't care what the AMC Phone Monkey says why the OA can't do it. Remember there a lot of Tier Three or worse Appraises out there competing with you. AKA Skippy

I quote from the TV Show 'Shark Tank' "For that reason I'm Out"

 

[mp2277]

Is it done ?

It isn't legally complete. Have you never had a municipal inspector find a laundry list of issues that require repair before they will issue the CO? I have many times.

 

[mp2277]

I am not an attorney. Therefore, I have never rendered an opinion about being "legally" complete.

You don't have to, the municipality is happy to do that for you

 

[mp2277]

I'm not sure you are.

Is it complete per plans and specs? If so, you should state that and no more.

Or did your initial appraisal indicate that the value was subject to completion per plans, specs, and CO?

I assume you are joking

 

[mp2277]

In my area especially near Holidays a home can be complete even finals done but unavailable to me for a month or more. If a buyer loses a rate lock or has people waiting to move into theirs I can see my two litigious nephews telling a buyer they have a lawsuit. Personally I go with plans and Spects is it complete. Too much legal liability saying it has to be legally completed. There I no such thing we do not determine what is legally finished.

Perhaps you can ask you nephews to read my post to you, especially the part about my disclaimer

 

[Tom D]

in my 1004D i state i wasn't present during construction and i does not warranty, or guarantee, anything involving this house. some of you seem very diligent, but stopping settlement for the co is going to cause 2 angry attorney clients. the builder & the buyer. i do, and have appraised, a lot of city rehabs/new construction. the city inspects every separate part of that job when it gets done. that seems like enough to go with it being completely built.

 

[Mark K]

I assume you are joking

No.

If I was joking I would have said..."Did you hear the one about the horse that walked into a bar? Bartender asked him "Why the long face?"

 

[Terrel L. Shields]

Why no CO?

In my area, relatively few new homes even have a certificate of occupancy. I only see them occasionally.

 

[Terrel L. Shields]

All newly constructed homes or living spaces must receive a certificate of occupancy from the state or municipality for completion.

Not true. None of our rural homes require a CO, only if in a rural county approved subdivision does the county gets involved. The state? Never. They regulate the septic and that is done via a certified sanitarian who tests the soil and designs the system.