If I was not properly informer regarding the status of building permits prior to closing, do I have recourse against my realtor?
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If I was not properly informer regarding the status of building permits prior to closing, do I have recourse against my realtor?
I was 24 hours from closing on a house when our bank identified that no permits had been pulled for a new pool, new office addition, and kitchen remodel. I was down as I figured it may take some time to sort through. My agent told me that the sellers agent had “contacts” in the city and would get them rushed through. True to her word, we received an email from the sellers agent stating “permits are in hand!”. Being my first home purchase, I was shocked but assumed they were done. Fast forward 1 year (this summer) and we are starting a deck remodel that we were going to pull permits on when our contractor tells us we cannot start due to “expired permits”. Shocked, I find out the sellers agent only opened the permits (paid initial fees) and was able to sell the house through a loophole and the permits expired 180 days later. I am looking at $500+ in permits, $2000 in engineering stamps and that is only if everything checks out and passes. Do I have recourse against my agent? I signed a contract with her to be my sole agent and she would absolutely know that permits cannot be opened-closed in 24 hours. I feel she just wanted her 13k paycheck. Now I liable for work that was never permitted. I spoke with a local real estate agent that said it would be tough to go after the sellers agent or the sellers themselves and recommended I go after the agent.
Asked on July 24, 2011 Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You need to review the purchase contract and the seller's transfer disclosure statement (and any supplements) regarding the property you purchased concerning all statement about the property having all required permits before you closed.
These statements would be the basis for any possible legal action against the sellers, their real estate agent (listing) and your own (selling). It seems that your real estate agent jumped the gun in letting you close escrow on the home when there were issues concerning the permit status still in the air.
You should consult with a good real estate attorney about the situation. A letter should be written to the seller and both sets of real estate agents putting them on notice of the permit status problem and your desire that they compensate you for the problem. You bought the home thinking its permit status was fine and it is not.
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