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Just a Reminder

By
Real Estate Agent with Aubrey and Associates Realty

On the local news last night there was an interesting story.  It orginated in Salt Lake City, but this particular station, like many others has a "fix it" reporter.  He is the guy that puts pressure on companies or government to make things right, and he does a good job.  He is fair to the companies and to the consumer. 

Last night, he did a story that I am going to keep it as brief as I can.  A family bought a brand new home in 2004, he bought it from the contractor.  As time went by he tried to get some things in the house fixed, like leaks in the roof, etc.  The contractor didn't respond very well, so he went to the local city government to see what they could do to help him.  The City told him that they shouldn't have been living in the house, that their building inspector had never issued a Certificate of Occupancy.

The man was upset, he had a mortgage on the house, and couldn't afford to have another mortgage(if he could get one in this market).  They were a young family, so things are understandably tight.  He contacted the mortgage company, and they were amazed that a mortgage was given on a house that no Certificate of Occupancy was granted on.  In Utah, by law, new construction requires a Certificate of Occupancy prior to people living in it.

The homeowner was able to get a copy of the final inspection report from the building inspector, and the house had failed the final inspection.  Long and short of it the entire thing is now in litigation.  The homeowner, as I understand it, is suing the builder for building and selling him a home that wasn't legal to occupy.  The mortgage company for the same reason.  The city, for taking the fees necessary for the inspections, but failing to enforce those inspections, allowing him to procure city serices without checking to make sure that it was a legal residence. 

In short the whole situation is a mess.  As Realtors, we need to make sure that we protect our clients completely.  I don't know if he used the developers Realtor or not, the reporter didn't mention that a Real Estate Agent was being sued, in fact, no Real Estate Agent was mentioned in the story.  I do think that if one isn't being sued, then they are lucky.  We need to make sure that everything is in order, today people are too ready to sue for us not to be!!! 

In this case, I don't disagree with the homeowner nor his desire to use the courts to remedy this situation.  I just want to make sure to remind us that we need to do everything possible to protect our clients, and possibly ourselves from being sued!

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Comments (2)

Matthew Zgonc
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
We definitely need to make sure that we disclose, disclose, disclose.  Otherwise we could end up on the People's Court.
Nov 27, 2007 07:30 AM
Keith Stoller
Keith Stoller Tax & Business Solutions - Bakersfield, CA
That's a worst case and I'm sorry you went through what was obviously a rat's nest of problems.  I've read a few horro stories on here over that last few months I've been in the community.  Save this one for Halloween and repost it along with any other stories that crop up.  As with anything, it will be a learning experience for us all.
Nov 27, 2007 09:51 AM