What are Municipal Searches and How do they affect my property?

Municipal searches are informational searches that encompass Building Department and Fire Department records. Information about the abutting street is also provided.

A Building department search will show the Certificates of Occupancy and Building permits that are currently associated with the subject premises. Certificates of Occupancy and Building Permits are proof that the local building codes and zoning ordinances have been complied with. They will also show the characteristics of the premises, 2 bedroom, 1 bathroom, etc. This is important to both the buyer and seller of the premises. If a lending institution is involved in the transaction, these searches are also key. Be advised that "Open" building permits that are more than a year old will constitute a violation and postpone a closing until the permit is converted to a certificate of occupancy of any other appropriate designation. For instance, there is an open permit for a finished basement. The basement is finsihed but the premises was never inspected by the building inspector. Therefor, no certificate has been issued and thus no proof of compliance with the local building ordinances. This open permit constitutes a violation.

The Fire Department records are also reviewed and provide information that would show if the premises is subject to any fire violations, such as a lack of smoke detectors or CO2 detectors.

The information that a street search provides will show whether or not the abutting street is public or private.

Why are these searches important? Lets look at a hypothetical - Suppose you were purchasing a home or owned a home and wanted to refinance the existing mortgage. Your lender will require an appraisal of the subject premises. An appraiser will inspect the premises and consult the tax records and perhaps the building department records as aforementioned. These records will give the appraiser the vital details of the premises and his inspection will verify those findings. The title company will be asked to perform a title search and prepared a title commitment based on the items found of record in the County Clerk's Office. The title company will be asked to also provide a municipal search. This search will mimic the building and fire department records.

The appraisal and building department records will be reviewed by the lender and compared to verify that the subject premises is what it is supposed to be. If there is a discrepancy between the appraisal and the building department records, this is where it must be disclosed.

A title insurance policy does not address any issue regarding zoning ordinances or building codes. Municipal Searches are simply not insured. Therefor, all interested parties must make certain that any discrepancy be dealt with prior to closing. As always, consult your attorney about any issue involving your real estate transaction.