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Seller agreed to repairs in real estate contract, no permit was obtained on work done, do I have to close?

On March 29, 2009 / By Real Estate Law Help / In Real-Estate-Contract-Law

Our home inspection (which was in the contract) found some safety issues with the existing aluminum wiring in the house. We proceeded to request that repairs be done by the seller by a "licensed electrical contractor", and they signed off on it.

In the city and state the house is located it is required by law to obtain a permit for the work. I was told the work was done, but no one has recieved proof yet and when I called the city they said no permit had been requested for that address.

Now I am being told by my attorney that because my realtor and I did not specifically ask that a permit be obtained in writing that I cannot refuse to close because of the lack of permit on the electrical work.

I do not understand how the city and state legally requires a permit but the seller and contractor can neglect to get one and yet I’m still obligated to buy the house with non-permit work done!

If I am forced into this, will that cause problems for me once I am the owner?

6 Responses to “Seller agreed to repairs in real estate contract, no permit was obtained on work done, do I have to close?”

  1. Barbara_R said:

    Mar 29, 09 at 8:53 am

    What does the permit prove? That the contractor was licensed? Nope. You would not be liable for anything since the work was performed before you were the owner. Just get with the licensed electrician and get a statement of the work that was done….and enjoy your new home!

  2. teran_realtor said:

    Mar 29, 09 at 1:47 pm

    Have your inspector go back to "check off the work done". He can simply say - "I’m not sure this is right. Let me see where the city signed off on the work though, and I’ll sign off."

    If the electrician IS licensed, he’ll want to keep that license and should be willing to go back to the city to get the permit.

    The permit doesn’t only show that the person doing the work is licensed, it also shows that a city inspector said that the work was done to city code. When you go to sell it, it might come up.

  3. silent_scream said:

    Mar 29, 09 at 7:26 pm

    you do not have to close, and can sue the real estate agent.

  4. TheElectrician said:

    Mar 29, 09 at 8:27 pm

    Repairs don’t always require permits. Typically only new wiring does. If they made a repair and it didn’t require a permit, then you needed to specify a licensed electrician perform and / or sign off on the work. How else will you know if it was done correctly.
    But you probably needed to specify this in writing however.
    If something goes wrong then the existing homeowner should be liable. Just make sure that you get something in writing saying he did it. Better yet, have him pay an electrician to come over and inspect and approve the repairs. If he doesn’t want to do this, it may still be in your interest to hire someone to inspect it.
    Good luck.

  5. sylviavnpttn said:

    Mar 29, 09 at 9:06 pm

    You can back out of the deal- problem is you will loose your earnest money-My best suggestion is1. hire a contractor to double check the electrical, 2. Have you Realtor contact sellers Realtor with proof of work done and by whom it was done. Even though a permit was required it is obious the seller was cutting cornors by not buying a permit. You as a buyer have choices. Truust me the realtor does NOT want to loose this deal. Ball is in your court.

  6. Skip said:

    Mar 29, 09 at 11:32 pm

    You can get the person that performed the home inspection to check the work and see if it was done properly.

    Like most homeowners this homeowner decided to save the money of getting a permit even though it is required in certain circumstances.

    Since a lot of do-it-yourselfers came about there are certain cities that will allow the home owner to do certain things in their own homes, they must attend a city sponsored workshop on the subject and get a city certificate.

    I know in my city that has happened. Since I have the certificate I just get one of my friends that is handy in that area, he comes over we share a few beers and accomplish what need to be done.

    You have encountered a savvy home owner that knows how to get things done. Learn from the situation and move on. Your attorney gave you some good advice.

    I hope this has been of some use to you, good luck.

    "FIGHT ON"


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