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How Specific Do You Get: Inspection Objection/Resolution Language

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Check Rosette Top Subjects:
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Mindy Jensen
BiggerPockets Community Manager from Longmont, CO

posted 5 months ago

I rep the buyer, and the seller was replacing a Federal Pacific Panel. City is NOTORIOUS for requiring permits for EVERYTHING. In fact, their permit department website says "It would be easier for us to tell you what doesn't need a permit, here's a list:" (And it's like 9 things that don't need a permit.)

I did not specify that the electrician should pull a permit in the Resolution, but did specify that they be licensed.

A licensed electrician performed said work without a permit. 

So, now that I've learned that lesson, let's talk specifics with resolutions. Of course I will be including language "..and pull all required permits" going forward.

What lessons have you learned?

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Bruce Lynn
Real Estate Broker from Coppell, TX

replied 5 months ago

You have to be specific....maybe even not just pull a permit, but how about "submit receipt and permit to buyer and title company at least 3 days prior to closing"?

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Bruce Lynn
Real Estate Broker from Coppell, TX

replied 5 months ago

I'd call the electrician and ask for the permit and see what they say?   If they did pull it, they can send it to you.  If they didn't and they know you know, maybe they will go pull it to stay safe, just like us....not worth loosing your master electrician license over....those are way too valuable and too much work to cut corners.

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David Avery
Flipper/Rehabber from Phoenix Arizona

replied 5 months ago

If the inspector is so good at what he does ....he will see that the electrical was done to code and his concern is code and that is that! 

Permits, etc, then maybe the house is not right for the buyer!!!

So many sellers/contractors have to jump through so many hoops to prove that the house is safe and within code!

This is why an inspector is hired and paid to make sure house is safe and within code.

I'm not trying to dance around the subject, but some buyers agents and some buyers should really just chill and buy the house, or pass and buy another house!

If its safe and within code why make such a fuss!!!!

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Mindy Jensen
BiggerPockets Community Manager from Longmont, CO

replied 5 months ago

@David Avery

The issue here is that the city in which the property is located is NOTORIOUS for requiring a permit for everything. The home had a Federal Pacific electric panel which was a deal breaker for us. The seller agreed to have the work performed, then did so without pulling the required permits. This is not the buyers asking the sellers to jump through hoops, this is the buyers asking the sellers' electrician to do the work in accordance with the permitting office of this city. 

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Steve Morris
Real Estate Broker from Portland, OR

replied 5 months ago

This is why I prefer, if possible, a credit instead of repairs.

Do repairs, you're always going to have workmanship issues and then warranty issues if you didn't pay for the repairs.

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Anderson R.
Investor from Toronto, ON

replied 5 months ago

I agree with Steve Morris. Always better to have the seller to agree on giving a credit for the average of 3 independent quotes. If seller is not trying to cut corners, they will easily agree. They want to get rid of the property as quick as possible and not jeopardize the deal. If no agreement you basically have two options: 1) I go ahead and buy it anyways because the deal make sense to me or 2) the deal does not make sense in which case I have no problem to walk away and hit the "next" button.

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Anderson R.
Investor from Toronto, ON

replied 5 months ago

On the other hand, nothing wrong in going back and ask who the electrician info and contacting him. A licensed electrician might have gotten at least an Electrical Safety Authority permission / certificate to conduct the work. Tell the seller you will call the local safety authority to verify they issued a certificate to "licensed" electrician. At which point the seller will cooperate or risk getting a big fine (for having it done by itself, if they still don't want to release the electrician's information).

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Mindy Jensen
BiggerPockets Community Manager from Longmont, CO

replied 5 months ago

@Steve Morris , I, too prefer repairs and requested them. Quotes for replacement were $2200-$3200. We asked for $3200, seller came back with "I have a quote for $1200, so I'll give you that." No way. We said if you can get it done for $1200, go ahead and do it. It ended up costing him $2100. Once we brought up the permit, they went and got one retroactively. Can't wait to see how this shakes out. 

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Russell Brazil (Moderator) -
Real Estate Agent from Washington, D.C.

replied 5 months ago

As specific as possible. We often will actually put no permit required, because getting the permit will push us in many cases way past the closing date.

But, super super specific. There was one last year where I put

"Deteriorated flashing and water diverter at chimney to be replaced"  I meant this to mean all deteriorated flashing....and the water diverter at the chimney to be 2 different things....they read it as only the flashing at the chimney.  So cost me about another $2k to get it fixed out of my pocket.

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Steve Morris
Real Estate Broker from Portland, OR

replied 5 months ago

"On the other hand, nothing wrong in going back and ask who the electrician info and contacting him."

Sounds like a lot of monkey motion.  What if the electrician says my contract is with seller, not you, get the info from him?

As a contractor, if you don't own the property so I don't know you from Adam.  I do know the guy that called and paid me.

Plus I may warrant the work to the person and not the property - Another reason to get a credit and do it yourself.

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Mike Cumbie (Moderator) -
REALTOR® from Brockport, New York

replied 5 months ago

My example: (I was selling agent)

Buyers agent put "Repair propane leak in basement" Picture of H2O tank (There was a sulfur smell there I will admit, I would guess the well pump, but I stayed in my lane)

Seller ran downstairs checked, couldn't find it. Used soapy water, called his brother who is an ex plumber (Gave his license up and retired). No luck finding it. Seller wanted to fix it if it existed, but wasn't going to pay someone to say it wasn't there.

Buyers agent began insisting it was repaired by a licensed plumber. I bought a inert gas detector that stated "propane" on it and left it for a couple days plugged in by the H2O tank. It was there for final walk through.

During walk through agent demanded we get a plumber in. I told her to look at the detector and there was no leak, she agreed it was not propane and demanded we "Get a plumber to determine the cause of the smell".

I replied "We agreed to repair the propane leak and you agree there is not one, we did not agree to determine the cause of the smell". We still closed.

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Mike Roy
New to Real Estate from Kapolei HI, United States

replied 5 months ago

Why this city is considered notorious?

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Mindy Jensen
BiggerPockets Community Manager from Longmont, CO

replied 5 months ago
Originally posted by @Mike Roy :

Why this city is considered notorious?

The city in question is very well known for requiring permits. As in, you can't be a licensed contractor in any field and not know a permit is required to do any work in this city. Even if you don't live anywhere near this city, you've heard stories from other contractors about how difficult this city is to work in.

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