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Updated almost 6 years ago on . Most recent reply

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178
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Wilson Lee
  • Birmingham, AL
73
Votes |
178
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Unpermitted work on property under contract

Wilson Lee
  • Birmingham, AL
Posted

I am under contract on a vacant four unit building and I am within my due diligence/Inspection period. Our own’s money goes hard in 10 days, The building is from the 1980s. Are states electrical codes got updated in 2015 requiring for wire outlets and a whole host of safety upgrades.

The building appears to have 4 new, out of the box, Electrical mains and meter housing’s. The meters themselves are missing. Inside the home it appears that Several outlet plugs have been swapped out, including plugs for the stove and dryer. It also appears that several lights are newly installed.

This area requires permits and inspections before the utility company can install meters. We have reason to believe all of this electrical work has been performed without permit. If I purchase the building that becomes my problem.

At best I might could pay a fine. At worst I could have to rip open drywall and redo anything.

While I am in my inspection. I would really like to get this sorted out before my earnest money goes hard.

The Owner is not interested In getting the proper permits a pulled and Is taking the position that they did no electrical work. Everything is hunky-dory and I should have the meters installed after we close.

I want to gain some type of leverage and force the price down, I also want to get the city inspectors out on site before my inspection period ends and tell me how much they’re going to make me redo.

What is feasible? How do I go about this.

Most Popular Reply

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14,573
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Theresa Harris
#3 Managing Your Property Contributor
11,242
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14,573
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Theresa Harris
#3 Managing Your Property Contributor
Replied

Pay an electrician to inspect the place and give you an idea of what needs to be done and how much it would cost.  Then use that as part of your inspection report should you need to negotiate.  The electrician, if they are good, should also know if things are to code or not.  Aside from the missing meters, it is also possible that the work was done before the current owner bought the house.  

  • Theresa Harris
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