Point of sale inspections are visual inspections that are required before an owner enters into a contract to sell a property. Not all cities in Northeast Ohio require point of sale inspections and the type of point of sale inspection – exterior only, exterior and interior etc. – varies depending on the city. Here's a brief guide to how it all works.
(Check out Dave's video blog on point of sale here.)
Cities created point of sale inspections decades ago to make sure buyers and sellers are aware of needed repairs, help them make corrections, and keep their housing stock in good condition. Point-of-sale inspections are different from private home inspections. Private home inspections are optional, might not cover the same items as a municipal home inspection, and do not require buyers or sellers to make repairs. Point-of-sale inspections are mandatory and typically require either the buyer or the seller to address the repairs.
Most point of sale inspections fall into one of two categories – exterior-only, or exterior and interior. There is usually a fee to complete the inspection, and this fee is paid by the property owner. Additionally, the owner of the property typically has a set period of time to make the repairs – for example, one year. When a property is being sold, oftentimes the buyer can assume some or all of the violations, meaning that the buyer is responsible for fixing them after they purchase the property.
Some cities, namely Shaker Heights, University Heights, and Cleveland Heights, also require either the seller or buyer to place money into escrow for major repairs. This money, which can be up to 150% of the value of the needed repairs, is placed in an account with the municipality in order to ensure that the repairs are completed properly and the work is done to code. These types of repairs might include roof work, painting, pointing a chimney or fixing a cracked or broken driveway. Building departments usually won't sign off on violations until they're completed.
Let's take the city of Cleveland Heights as one example. The city's website states that owners of real estate in Cleveland Heights – including single-families, two-families, apartment buildings, condominiums and commercial properties – must obtain a "Certificate of Inspection" (another name for point of sale) before entering into an agreement to sell a property. The seller is required to provide a copy to the buyer, and it's valid for one year. If the seller fixes the violations, they must provide a Certificate of Compliance showing violations were corrected, if that's available, before the contract is executed.
There's also a cost in Cleveland Heights – it's $200 for the first unit and $50 for each additional unit. For example, a single-family home would cost $200, whereas a two-family residence would cost $250, and a four-unit apartment building would cost $350.
Here's a list of the cities that require some kind of point of sale inspection that Progressive Urban regularly does business in, and a link to the city websites where you can find more information. If a city is NOT listed here, it's because they don't require a point of sale inspection.
CITY OF CLEVELAND
The city of Cleveland does not require a point of sale inspection right now, but that will change soon with the passage of the Residents First legislation. Here's info on Residents First from Progressive Urban: Need to Know: Cleveland's New Vacant Property Point-of-Sale and How it Could Affect You (progressiveurban.com). And here's the city's website information on their certificate of disclosure: Division of Records Administration | City of Cleveland Ohio
EAST SIDE SUBURBS
Bedford Heights: City of Bedford Heights Ohio
Bratenahl: https://www.bratenahl.org/243/Home-for-Sale
Brooklyn Heights: Building Department- Village of Brooklyn Heights (brooklynhts.org)
Brook Park: http://www.cityofbrookpark.com/building-department/
Burton: http://www.villageofburton.org
Cleveland Heights: Point of Sale Inspections | Cleveland Heights, OH
East Cleveland: East Cleveland, Ohio
Euclid: All Forms and Permits (cityofeuclid.com)
Garfield Heights: https://www.garfieldhts.org/Building--Housing
Highland Hills: VILLAGE OF HIGHLAND HILLS " Public Works Department (vhhohio.org)
Hunting Valley: http://www.huntingvalley.net/
Maple Heights: https://www.citymapleheights.com/government/departments/building-department/point-of-sale-inspection/
Mayfield Heights: Applications & Forms | Mayfield Heights, OH - Official Website (mayfieldheightsohio.gov)
Moreland Hills: Point of Sale Inspection - Village of Moreland Hills
Newburgh Heights: Selling or Buying a Property | Newburgh Heights, OH | Official Website (newburgh-oh.gov)
Northfield Village: Welcome to Northfield, OH (northfieldvillage-oh.gov)
Oakwood Village: Building Department - Oakwood Village (oakwoodvillageoh.com)
Orange Village: Building Department – Orange Village
Richmond Heights: Exterior-Maintenance-Inspection-Rules-Revised-7-28-2017-PDF (richmondheightsohio.org)
South Euclid: Building | City of South Euclid, Ohio
Shaker Heights: Point of Sale Procedure | Shaker Heights, OH (shakerheightsoh.gov)
Twinsburgh: HOUSING / Point of Sale | Twinsburg, OH - Official Website (mytwinsburg.com)
University Heights: Point of Sale | City of University Heights, Ohio
Warrensville Heights: Inspections | Warrensville Heights, OH (cityofwarrensville.com)
Woodmere: POS-BuyerSeller-Escrow-Agreement-Residential-0621.pdf (woodmerevillage.com)
WEST SIDE SUBURBS