Family buys house in Morton Grove, Illinois, only to be stymied by seller's code violations
A family of four should be comfortable at home in their new house in the north Chicago suburb of Morton Grove — but instead, they're stuck in limbo. They ran into a litany of building violations they never heard about until after their purchase closed.
The Hovey family was looking for a fresh start with a move to the suburbs.
"We found this home in Morton Grove, and it was just like, perfect for us," said Sara Hovey. "It had a really open layout, enough bedrooms."
The split-level house had new floors, and a gleaming kitchen with quartz countertops and stainless-steel appliances too. Every detail in the home had been "meticulously redone," according to the real estate listing description.
"Everybody I tell this story to is just like, baffled," Hovey said.
They're baffled because the dream house is still just a dream. They don't live there, and they don't feel safe moving in.
"We wake up in the middle of the night just like, are we going to have to spend all this money on lawyers?" said Hovey.
The legal battle over the house on Maple Court started after the family purchased the property, which involved wiring nearly $200,000 to the seller. Now, the Hoveys have a desperate plea to Advocus National Title Insurance Company, which facilitated the closing on Feb. 28.
"Please, can you get us our money back?" Hovey said. "Can you unwind this transaction?"
The day of the closing, an issue cropped up with something called real estate transfer stamps.
"It means that the village or the municipality where the property lies signs off on the person selling," explained Hovey.
The Village of Morton Grove had not given such approval for the closing — leaving the Hoveys with a lot of questions.
"Does this mean we have to come back? We have to do this again because they don't have their paperwork in order?" Hovey said. "And the closer and our lawyer both said, 'You know, this happens sometimes. It's not a big deal.'"
But it was a big deal, as it turned out. A Morton Grove village inspector took a look at the home and found big problems.
"Instead of issuing transfer stamps, [the inspector] issued a whole list of violations to the seller," Hovey said.
The violations meant the glitz and glam of the interior of the house, touted as having been "meticulously done," might have to be destroyed.
"Drywall removal may be required," noted the village inspection report, which revealed that the seller did not apply for permits before remodeling.
The seller was slapped with violations concerning wiring, vents, and the removal of a possibly load-bearing wall.
"The inspector told my husband verbally not to move in, so, we don't feel comfortable moving in," Hovey said.
Hovey contacted CBS News Chicago on April 15, more than 45 days after closing, because she said she was not getting anywhere fixing problems with the house.
Hovey and her husband were paying for a mortgage, rent and a litigation attorney — who apparently told her she should have been protected.
"[We were told], 'The title company should've protected you, your attorney should've protected you, the seller's attorney should've done this, the seller should've done that,'" Hovey said. "So it seems like there is enough blame to go around for all of the other parties in this, and we're just kind of like a family caught in the crossfire."
The same day as the interview with Hovey, CBS News Chicago reached out to everyone involved in the transaction.
The title company replied, "Advocus acknowledges that some elements of the claim fall within the scope of the title insurance coverage."
The seller's attorney said, "The seller is making the house compliant."
Village representatives for Morton Grove confirmed the seller did apply for permits about a month after the closing, but further inspections were still needed.
Things were sort of moving, just not for the Hoveys.
"It's just been a lot of stress," Hovey said.
Many of CBS News Chicago's outstanding questions for this story are for the title insurance company. Why did the closing go through when transfer stamps were still needed? And if costs start to add up to make sure the house passes inspection, for what exactly will a title insurance claim pay?
Advocus would not answer, but did issue this statement:
"Advocus acknowledges that some elements of the claim fall within the scope of the title insurance coverage. We are working closely with all parties involved to resolve the matter as quickly as possible.
"The parties are in negotiations to resolve factors outside the scope of title insurance policy terms. We are in communication with all relevant parties to find a resolution and ensure that the necessary corrections can be made so the appropriate transfer stamps can be issued and the documents properly recorded.
"We take our obligations seriously and remain committed to ensuring that the purchaser receives the full benefit of their coverage. Our focus is on achieving a timely and fair outcome that restores confidence and peace of mind for the homeowners."
