The property hit the market, and a buyer soon made an offer. However, the buyer’s attorney noticed a discrepancy: the listing claimed three bedrooms, but tax records only showed two. A building permit search revealed that no permit had been pulled for the window enclosure. This raised red flags, leading to the city planner’s involvement, who mandated that the window be reinstalled to meet building codes.
The discovery delayed the closing, and John had to pay a penalty fee. In the end, the situation could have been avoided if the proper permits had been pulled from the start.
How We Fixed It:
- Pulled Permits: We reviewed the work, identified needed permits, and ensured compliance with local codes.
- Resolved Issue: Coordinated with the city and buyer to reinstall the window, allowing the closing to proceed.
How to Avoid this:
When you are working with
- Buyers: Notify us when dealing with flipped properties so we can verify changes with tax records and check for required permits.
- Sellers: Contact the town’s building department to identify open permits; encourage clients to confirm that all work is properly permitted to avoid delays.
Takeaway:
The key lesson here is the importance of ensuring that all work requiring permits is properly documented and that listings accurately reflect the condition and configuration of the property. This will help avoid last-minute surprises that can delay or even derail a closing.
If you have any questions or need assistance with a closing, don’t hesitate to reach out. And if you found this story helpful, please share it with your colleagues. We’re here to help ensure smooth and successful transactions for you and your clients.