Property Inspection and Repair
Section (d) contains information on the Inspection and the Close-Out of Building Permits. The second section, section (ii), addresses the Close-out of Building Permits. Here it states that the Seller must have an estimate of the costs to remedy Permit Inspection items that the Buyer’s Permit Inspection notice revealed. This must be done by a licensed person within 10 days after the receipt of the notice. Seller then must have the open and expired building permits, identified in the notice or previously known to the Seller, closed by the applicable entity and receive and close any other required building permits for improvements to the property. This must be completed no later than 5 days before closing and the cost must be within the Permit Limit. If additional time is needed, the Closing Date can be extended up to 10 days. However, if the Closing Date cannot be extended either party may terminate the Contract. If the cost to close the open or expired building permits exceeds the Permit limit, within 5 days of the receipt of the notice, the Seller can either agree to pay the difference or the Buyer may, in writing, agree to accept the Property in its “as is” condition as long as Seller agrees to credit Buyer at Closing with an amount up to the Permit Limit. If neither party can agree to one of these to compromises, either party may cancel the Contract.