What! The seller did not obtain a permit?!!!

Whom you use to buy your home is VERY important.

An acquaintance whose children just closed on their home just told me (unfortunately using another agent) that their “new roof” sprung a leak this last week. In doing research they found out that the seller did not obtain a permit for the new roof and they were given no contractor or warranty information from the seller.

So they called their agent asking for them to step in and help them and they said, “Our contractual partnership is over, I do not need to do any more work for you.” That agent “earned” (and I use that term very loosely) over a $10k commission but now cannot be bothered to help undue the damage that they actually caused by their negligence by not looking out for their buyer.

Sellers that are upgrading and renovating their properties without obtaining the proper permits is increasing and Buyers agents are not doing their fiduciary duty to protect their buyers.

Always demand a permit report!! I provide them free for every one of my buyers! If your agent doesn’t use permit reports have them ask the sellers to provide proof of permits and all warranties BEFORE you close escrow!

And listing agents, you need to start telling your sellers, If you do not obtain permits you will not receive full value for the upgrade.  asking a buyer to accept a big ticket item like a roof without any assurance that it was done properly is not a boon to the buyer but a huge risk now that roofs cost upwards of $15,000!

Craig J Townsend



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