Risk of having someone signing off plumbing work

[Mei Li]

I’m currently closing on a deal in Maryland. The seller remodeled the unit and added a bathroom. My offer contract has a contingency clause that the seller has to obtain the bathroom permit before closing. After government’s inspection, seller realized that he used a plumber outside of the city while it is mandated that he has to use a plumber licensed in the city. He is looking for local plumber to sign off the work.

My question is what are the risk involved in buying a property like that - will I come across insurance issue? Legal issue? What are the hidden liability that I need to watch out for?

Thank you!