Nam and Nick purchased a new construction three plex multifamily property near the Texas Medical Center and Herman Park.

During the Option feasibility inspection period we expected requested and expected to receive the City of Houston Multifamily Dept Certificate of Occupancy.

Seller’s listing broker never delivered the Certificate of Occupancy. He told me the reason was that City required an interior sprinkler system.

I have transacted over 130 multifamily properties and this has not part of the published inspection form. Nevertheless the buyer purchased the property and discovered an orange sticker on the front window of the three plex. Surprise.

The city inspector left his phone number one the bright orange sticker. He disclosed other City requirements such as the need for more parking. It is a small land parcel and this city parking requirement may be difficult. Plus Nam and Nick found that the cost of interior sprinklers might be $21,000..

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