The Inside Scoop: What You Inherit When You Buy


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New construction should be easy, right? But a recent transaction proved otherwise when I looked up the permits and found a good half dozen open. The inspection discovered the builders subs had forgotten to install the ceiling and floor insulation, plus the usual punch list items. Another wrinkle was the shared garage, which I knew the lender would require a recorded upkeep agreement on.  To further add complications, the neighboring property had closed without concluding similar issues and was none to happy with the builder.

At a certain point, the only leverage the buyer has are strong contract terms and closing. Whether the property has open permits, un-permitted additions and remodeling or water in the crawl space, the purchaser owns these issues, along with the home, once they have closed.

In our case, this transaction required almost daily phone calls to check in with the listing broker and press for progress. At times it seemed unlikely that we would actually close, but close we did, with all the important items finished, and some very tough and savvy buyers that know what they bought, all of it.