Allentown Commercial Property Cash Sale - Does a CO need to be pulled

[Matt N.]

Hi BP Lehigh Valley,

I'm working on a sale of a commercial property in Allentown, the buyer is paying all cash. I am running into conflicting information about the need for a CO to be pulled before the sale. For residential, I understand this is a requirement. Lenders also require this. However this deal is not residential, and there is no lender involved. The buyers agent is insisting it is a requirement anyway. In the AOS our buyer agreed to no inspections. 

Can any local experts in the Lehigh Valley weigh in on this? Can anyone refer me to a local expert who deals in commercial and cash deals in the LV? 

Big question: Will the city or title company stop the sale if there is no CO pulled? Our reason for NOT pulling one, is there are functioning businesses in the building, and the seller does not want to risk an issue that would cause loss of rent or un-realistic requests from the municipality that may disrupt the commercial tenants. 

Thank you in advance!

Matt

[Randy Gutierrez]

@David Ribardo might be able to chime in

[David Ribardo]

@Randy Gutierrez thanks for the shout out! It was great seeing you the other day.

Matt, nice to meet you. My recommendation is to call the city building standards office at 610-437-7694. They will tell you what is and is not required for your specific situation.

I could sit here and quote the city codes... But they are the ones that ultimately are enforcing them, and will be much better sources of information. 

Of note, my team has closed some tough off market deals that definitely didn't come with any sort of inspection. A friendly call to the inspector office and offering to clean up the paperwork as soon as closing completed was quite acceptable to them. 

[Matt N.]

@David Ribardo

I've called and emailed Paul B. at the city. Nothing yet.

Specifically: Commercial building, Cash sale, Do we need to pull the CO or not? 

I specialize in Philadelphia, the buyers agent seems to be from NYC and lacks experience, he thinks this is 100% necessary... Online resources are not clear.

Thanks in advance!!

Matt 

[Ronald Rohde]

I'd go with the contract. Are you near closing? past DD?