Stop Work Order

[Renee Healion]

My subject is contracted to sell for 70% more than it sold for 13 months ago. It's a Friday and the Town Hall closes early and I am just collecting data I may need while it is available prior to visiting the place.

Since there is such a huge jump in price in such a short time, and I have not yet verified the terms of the last sale nor seen the place, I go into the Building Office and ask to see the property's file. Maybe there is verification for renovations, beyond what the agent will say. The only things in the file during the seller's possession are two Stop Orders issued because the sellers did not pull permits. They ignored the orders and completed the work. The un-permitted work is the only new work I see when I get there: siding, insulated windows and doors, deck.

Suggestions? Checkage?

 

[Mike Kennedy]

Similar situation this Monday......

house sold 2004 1.5 story cape blt 1942, check County records on line- same ......house less than 1 mile from me- cruise past on way to another assignment..............been replaced with contemp colonial - anywhere from new - 2yrs old..........village building dept .......open bldg permit - new renovation / expansion second floor including renovation of original first floor.....etc.........

immediately contacted client, indicated 2 options........"subject to CO" or hold order till CO issued. .........they chose latter of the 2......... will revisit and do full appraisal regular fee with $100. supplemental for research and second trip. no biggie.

suggest giving your client a ring and inform them of findings to date.......give them the option to cancel order, accept "subject to CO" (if required), HOLD until completed and CO. client service goes a long way ......for repeat orders and long term relationship with your client.

 

[Donny Lindner]

The first order would be to contact the client. You may be asked to stop working on assignment and save yourself a lot of work. They should inform you on how to proceed, then you can tailor you scope of work to meet the clients needs.

 

[Renee Healion]

Thanks. My client has not run into this situation in all his time. We see lots of work that very probably was not performed with permits, but have not run into documentation of that fact. I am inclined to complete the appraisal and make it CB4, 'subject to satisfaction of Building Official in the matter of issued Stop Work Orders'. ???

 

[Ms. Janet]

i think you can complete it with a box 4............but, i would be a little concerned that they've been issued 2 orders to comply and have ignored both of them..............
you know the temperment of your building officials........it may be as simple as a fine to pay for the proper inspections. but, if the renovations are in violation of the building codes the the work may very possibly remain only at the pleasure of the municipality.

 

[Otis Key]

Thanks. My client has not run into this situation in all his time. We see lots of work that very probably was not performed with permits, but have not run into documentation of that fact. I am inclined to complete the appraisal and make it CB4, 'subject to satisfaction of Building Official in the matter of issued Stop Work Orders'. ???

Renee - it's not subject to if you're going to CB4 it. It is based upon the extraordinary assumption, as stated for CB4, that there is a certificate of occupancy. Otherwise, you're going to CB3 on a subject to.

 

[Renee Healion]

Yes right thanks Otis...the wrong wording shows I did not have it clearly thought out. I will straighten that out.

Janet, the Building Office is not what I would call especially aggressive in this particular town compared to others. The two orders were one month apart, one for siding and the other for the rest.

It will be up to the lending agency to sort out. No one knew anything, not the list agent, nor the buyer agent. Time for them to step up and advocate for their respective clients.

 

[Pat Butler]

To complicate the matter, USPAP requires that we consider the HBU of the subject property. Of course that use has to be 'legal.' So I'd think, at a minimum, some discussion on how these unpermitted upgrades affect HBU is in order.