Wednesday, December 12, 2018
When purchasing a house or condominium, it is a good idea to check with the municipality to determine if there are any open permits on the property. Most municipalities have an on-line database, which makes the research easier. If a permit is located, then it is reasonable to request that the Seller remedy the issue. Possible outcomes of a request include: -Seller to make any necessary repairs and the municipality signs off and closes out permits prior to closing; -Seller provides a Buyer credit; -Seller does not agree to remedy some of the prior owner permits. If the open permits issue is not resolved to a Buyer’s satisfaction, then a negotiation can ensue. Factors to consider in the negotiation are whether there are other offers, likelihood of another Buyer raising the same issue, feasibility of the municipality signing off on remaining open permits (in Boston, for example, the city often cannot close out older permits), and the cost of the work (if) needed to close out the permit(s). A skilled real estate attorney can provide additional guidance.