St. Paul REO Nightmare #2

Date Posted: Monday, April 6 2009 3:11 PM
 
Well it's only been 3 weeks since I blogged about a St. Paul REO Nightmare and today I talked to another victim of a Category 3 building in St. Paul.   It's truly unfortunate for a buyer to be put in this situation and I still shake my head in disbelief on how this can happen. In this case the buyer has a hearing set for May 12th to decide the final outcome and until then she is being told that she can not move in and can not start any repairs on the property.   FOLKS, A CATEGORY THREE BUILDING CAN NOT BE PURCHASED IN ST. PAUL.  Or at least that's my opinion.
 
 
The City of St. Paul has three categories of vacant buildings.  For a Registered Vacant Category 1 the seller must obtain a TISH to market the property, the buyer and/or seller must register or re-register ownership, plus pay any outstanding fees and comply with existing or outstanding orders for legal occupancy. For a Registered Vacant Category 2 the seller or buyer must register or re-register ownership, pay outstanding fees, obtain a code compliance report, submit for approval a bid by a licensed contractor for completing, and a schedule for completion of all code compliance work and submit proof of financial capability. For the sale of a Registered Vacant Category 3 Building in the City of St. Paul to take place one of three certificates must be obtained. 1. Certificate of Occupancy, or 2. Certificate of Code Compliance, or 3. Fire Certificate of Occupancy.
 
Remember BUYER BEWARE. Get representation on these deals and make sure you work with an agent that is familiar with REO transactions so this doesn't happen to you.   A good friend of mine and an agent our team introduced me to a clause he uses to protect his buyers and I use it as well.
 
Buyer and seller agree that if property is condemned, loses its zoning or rental license, has new code compliance orders issued, or otherwise changes status with any governmental jurisdiction prior to closing, the buyer may cancel this agreement by written notice to the seller’s agent and all earnest money will be returned to the buyers. 
 
This clause can go a long ways in protecting you from this type of nightmare.

Comments

You Gotta Represent

Posted by Kevin SandridgeApr 27, 2009 12:00 AM CDT 
Kevin, buyer representation on REO deals is absolutely a must.  Folks here in Florida foul up their own FSBO deals ALL the time!  I cannot even imagine trying to move ahead on an REO deal without a qualified professional taking the lead!

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