Who should pay?

!n May 2010 I sold my first investment property. Permit for new windows was pulled and windows were installed. Permit was good until August 2010 and title company allowed closing with open permit. Contractor says that inspection was done but city did not make record of that inspection and now they want $250 to reopen permit and make inspection like it was never done before. Contractor says I should pay for new permit.

I asked contractor what will happen if no one reopen the permit? Would his license to be in danger? His answer was “No, it will not bother me at all. The lien will be recorded on buyer and it is no ones fault”.

I went to the city and asked the same question. The answer was “It (responsibility) will be on him (contractor). The lien will be recorded on buyer but they will put contractor’s license on hold”.

I hate to think that buyer will be the one in the end. And I don’t understand why should I pay for new permit when contractor got paid for his job in full.

Please, any suggestion on point how this situation could be solved without loosing my face and harm to buyer. Contractor lied but I wish to see him accepting solution as well.

Thanks for sharing your thoughts on this subject in advance.

Im probably being too soft with this response since my initial read points to the contractor paying in full but I would probably offer to split 50-50 with him. Esp if you will be continuing to do business with him…I dont know that I would though since he lied.

This contractor has skills and knowledge but I leaned I don’t have to expect him to be reasonable and he will eat you up if allowed. That’s why he is not in my list who I call for help in my current rehab. He claimed he is not going to pay a penny to reopen the permit and he is getting mad that I am asking him for reason why should I pay this fee. The reason he gives me the house is yours, so you pay.

Inspection already done?

If the inspection was already done then the inspector usually leaves a sticker signed by him stating that the work has passed inspection. Did you ever see one of these stickers left in your house? Hopefully it is still there… My inspection stickers are still stuck to my electrical panel and furnace. There is even one on a pole in my basement for something. If you never saw one and had to remove it then the contractor probably never called for the final inspection. Hopefully you had the contractor sign a full unconditional waver stating he was paid in full for services preformed and that a lien cannot be placed against your home.

The way I see it, if his license is going to be placed on hold, no matter who made the mistake, he will pay the fee, get it cleared up and then place a lien against the home. Before paying in full you need to make sure work is complete including inspections.

I would go back to the city and see if they can find records of the inspection and talk to the inspector…

I have no direct experience. I am interested in hearing how this turns out in the end.

I’m confused. Everyone is talking about this being your property. You say you sold this property in May 2010. If that is the case, I wouldn’t do or say anything. The contractor and new owner should work it out. I don’t see where you have any responsibility here.

–Natalie

I guess my experience is different. I always pay those kinds of things that show up after I sell. Tax assessments that show up 6 months later and abatements that show up after the sale. Mistakes in calcs from the city or county that are paid at escrow but then the city bills escrow the right amount a year later. If I don’t pay it, it will show up on the new owners tax bill. I have several repeat buyers and it’s part of my customer service to take care of nagging details like that.

I would pay the $250 and never deal with the contractor again. I’m guessing that the city either called the owner of record on the permit (Lubasha) or they contacted the current owner who then contacted their seller (Lubasha). So, she had a crappy contractor who probably never ordered the inspection or ordered it but didn’t make sure it happened. No surprises there…haven’t we all dealt with some contractors like that? Her first clue was the open permit at closing. Just because escrow allowed it doesn’t mean she should have. The new buyers have every right to expect that the permit was taken care of.

Thank you all for respond.

Contractor ordered inspection and inspector was on a property. So far as I remember she asked contractor to place some screws in windows that were missed with intention to get back and sign the paper when it will be done. Contractor convinced her that screws are in place but evidently inspector never signed the paper. That was my first rehab and I did not realize how important it is to follow up with checking on issues like this, I thought contractor is doing his job and he rules, not me.

I collected all papers related to rehab along with permits (electrical, AC, roof) that left after rehab was finished and handled it to buyer at closing. I don’t remember that I saw sticker for windows among these permits. I am pretty sure that contractor will put lien on buyer, so I will rather pay that fee to keep buyer out of trouble because I agree with Kristina that buyer has every right to expect that permit was taken care of.

Kristine and Lubasha, you are correct about it being the right thing to do about taking care of the $250. I missed that part about the new buyer being liened. I was thinking that the only one affected would be the contractor. My bad.

–Natalie

Ok folks,

Here is my latest finding on open permit problem.

After being in title co, city, court, with RE broker, talking to my current worker (the best!) I called to construction licensing board and eventually spoke to investigator. He insisted I to file complaint and then contactor will be in charge for abandoned permit, code violation and as result will lose his license. Investigator sounded very angry and already saw the blood “See how quick he will be after you file it!”.

Then I called to contractor and explained that he did mistake and no one but him obligated to fix it. I asked him to leave buyer alone. I sent him email with full description of windows (special receipt from the store) installed on the property for he could go through re-inspection more smoothly. He said “Thank you, I appreciate it” and I hope my part in this story is done.