I want to share with you something that has come up for one of my buyers that anyone purchasing a home should be aware of.
After moving into their newly rehabbed home, which had previously been a shell, these new homebuyers received notification from the Baltimore Housing Authority informing them that no “Use and Occupancy Permit” had been issued and that there would be fine if this was not completed by a fast approaching deadline.
After following up on this with the city, and paying $25 for an application for a permit, they still need an inspection, possible repairs made, final inspection, and final permit from the city. All of which is costing time and money for something that was to be completed prior to selling the home for, residential use, by the seller. After speaking with the lender and title company, we have found that it is not common for the title company to research this permit unless the lender requires it for the loan and that’s usually only when financing new construction.
We are still working on this in order to obtain reimbursement from the seller but going forward I recommend checking with the Baltimore Housing Authority for any outstanding violations and permits on all property when making a purchase and if the property was a shell or is new construction, asking for an “U&O Permit” is a good idea so you don’t get this nice welcoming gift from the city.
Check out http://www.baltimorehousing.org/ for additional information and if you’re in the market to buy/sell, give me a call.
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