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Updated over 1 year ago on . Most recent reply

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21
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Frankie Renaldi
8
Votes |
21
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Checking for open permits

Frankie Renaldi
Posted

Good morning BP Fam.  Quick question. I have an investor that purchased a property with several code items lingering which we knew about.  What we didn't know about was an open permit from the 80's.  Is there a document you all have used to hold a sellers feet to the fire in the AOS.  I know in commercial lawyers drafting contracts have these indemnification clauses, but looking for a sample for an agreement.  Thanks in advance.  

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418
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Matthew Morrow
  • Investor
  • Pennsylvania
159
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418
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Matthew Morrow
  • Investor
  • Pennsylvania
Replied

@Frankie Renaldi, Allentown City? Were seeing this happen lately here with gentrified properties prepping for sale. The inspectors have taken every opportunity to rectify old permits. We've held up closing for the permits to be satisfied prior to settlement, or asked sellers to compensate buyer X for a licensed plumber / electrician etc to do the work within so many days. Most times the city is amenable to this. You could also explicitly state conditions in the ASR, but likely wont be a good as a indemnification clause you mentioned. Would love to learn more if you find something specific. 

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