When is a property in Conveyance Condition
An Excerpt from the ebook Property Preservation Questions and Answers
A property must meet certain standards in order to be transferred to HUD. The following items are usual requirements and there may be others depending on the property and circumstances.
- All items must follow HUD guidelines.
- The property has a clear title.
- The property is vacant.
- The property is secured to HUD guidelines including door lock codes.
- All outbuildings are secured to HUD guidelines including door lock codes.
- Any needed boarding has been completed according to HUD guidelines.
- Any pools, hot tubs, and or spas are secured according to HUD guidelines.
- The property has been winterized.
- Utilities status completed whether transferred to HUD, on, off, etc.
- Exterior debris and health hazards have been removed.
- Interior debris status completed according to area guidelines.
- Personal property status completed according to area guidelines.
- Grass has been cut within two weeks of conveyance, if conveyed during grass cut season.
- The property is free of any damage, other than that due to mortgagor neglect/unfinished renovations, except for fire, water, freeze, flood, earthquake, tornado, hurricane, boiler explosion, vandalism and roof damages.
- There are no outstanding property condition code violations or citations.
The only exception to these requirements occurs if HUD has been advised of an issue where the requirements have not been met and has agreed to accept the property as is.
Individual companies may add to the list above which are the basic HUD requirements. Read the company’s Contractors’ Manual – it should have a written statement as to their definition of conveyance condition.