In closing document seller responsible for opening and closing all permits.

[Ghostwtr]

What is the name of your state (only U.S. law)? Florida

We recently purchased a home that was a flip. During the closing process it was discovered the seller had done the work without any permits. So in the closing document we put in that the seller was responsible for opening and closing all permits and associated fees and costs within 12 months. This was secured with a $10,000 escrow account. We move in and a local electrician hired by the contractor who opened the permits for the seller, shows up a week later to do the electrical work. A day and a half into the job, they get a phone call to immediately stop the work and leave the site. The seller has fired the contractor, who he says forged his signature on the work order. (The contractor was paid to open the permits.) The seller then sends someone who has general electrical knowledge to close the open outlets, the original electricians left open when they left. The electrician is saying he's owed $3,500 and is harassing us to pay it and is threatening to put a lien on our home and have the permit closed, which he says will result in the removal of the meter. The original contractor who opened the permits, wants us to now sign with him to close the permits and bare the associated costs or he will close the permits.

In the meantime both real estate attorneys are talking and we're being told to let it play out. In the meantime, the electric is a mess from when the previous electricians were here. Electric has gone out to two bedrooms and outlets are continuously tripping the circuit breakers.

What are our rights and options? I'm not really getting any good answers from anyone.

 

[FlyingRon]

Let the lawyers duke it out. Unless your purchase contract specifically states otherwise, you are buying the house "as is" subject to whatever permitting issues there may be. Usually all the purchase contract says is that you are getting clear title conveyed (i.e., no liens, etc..). Permit issues are something you are expected to do your own due diligence on.

 

[Ghostwtr]

Let the lawyers duke it out. Unless your purchase contract specifically states otherwise, you are buying the house "as is" subject to whatever permitting issues there may be. Usually all the purchase contract says is that you are getting clear title conveyed (i.e., no liens, etc..). Permit issues are something you are expected to do your own due diligence on.

Thanks for the reply. Our purchase agreement specifically states the sell was responsible for opening all required permits, doing the needed repairs at his cost, and closing all required permits.

What about the electricians that came to work on the home? We did not hire them, they were hired by the contractor, who was hired by the seller. Why are we being asked to put up the money, and does the electrician have the right to put a lien on the property?

 

[FlyingRon]

The electrician certain DOES have the right to lien the property if they have not been paid no matter WHO hires them. The property owner (either the current owner or you after you close) can go after the contractor who was paid and didn't pay them (if that was the case).

Again, LET YOUR LAWYER HANDLE IT. We can't read the contract to see just what it says about permits. Frankly, if it's not resolved to the satisfaction, you should NOT close on the property. Then the attorney can address the damages you may have suffered (or caused).

 

[Ghostwtr]

The electrician certain DOES have the right to lien the property if they have not been paid no matter WHO hires them. The property owner (either the current owner or you after you close) can go after the contractor who was paid and didn't pay them (if that was the case).

Again, LET YOUR LAWYER HANDLE IT. We can't read the contract to see just what it says about permits. Frankly, if it's not resolved to the satisfaction, you should NOT close on the property. Then the attorney can address the damages you may have suffered (or caused).

Unfortunately we closed on the property and as part of the closing, the seller agreed to open and close all permits and to pay any and all costs related to permit work.

It looks like I'm going to have to pay the electrician. The seller is saying he didn't authorize the contractor to begin work and is refusing to pay him.

 

[adjusterjack]

You should never have closed on the property without all of this being taken care of and paid for before closing.

I'll bet the shady realtors talked you into closing with that bad deal. Now they've been paid their commissions and left you with a big mess.

You really have no choice but to let your attorney do what he's got to do and take your lumps.