Sellers Were Asking: Renovations, Permits, Closing Day

Renovations, Permits, Closing Day

Every once in a while we come across an outstanding permit issue prior to a house closing.  Not often, but, it happens.  Why?  Very simple, actually.  Either you or the contractor you hired did not ensure the City came in and did the final inspection.  I am guessing it happens a lot more than most people realize so figured it might be a good newsletter worthy reminder to just get all your ducks in order before listing your home as if all final permits have not been issued prior to your attempt at closing, you will run into a delay.   So, your next question is ‘how am I to know?’?  My contractor handled it all.  Did he?  Sometimes, preparing for a closing on a home, we are met with a comedy of errors.  Your realtor is typically the very last person to find out as by the time you approach the date set out in your Agreement for Closing, the lawyers have taken over the next stage of the process so, we pretty much are at the sidelines and at the mercy of what information is shared .  It is what is not that becomes the barrier to close.  Inasmuch as we want to help, on day of closing, it often is too late.  And, with most people choosing a Friday to close, you are leaving it to chance all the parties to your transaction will be available to assist in a last minute glitch.  Check with the City and ask the question.  Does my home have any outstanding permits to be issued prior to me selling?  If there are, deal with them as soon as possible.  Although there is a date for the buyers’ lawyer to verify all is ok, sometimes, things fall between the cracks.  And, it is that ‘sometimes’ you do not want to encounter as it can mean the delay in completing your transaction and every other transaction in your string if every buyer and seller in the line is awaiting for their monies to close subsequent home purchases.  If your deal is hung up on a permit requirement, the costs can mount for everyone.  Moving trucks are now sitting idling on the street at hourly rates and you cannot be issued keys for your new home until your money from your existing home arrives from the bank.  Just an unfortunate additional unexpected cost no one needs to bear.