Seller was to "have occupancy permit in possession one week prior to the closing." The occupancy permit was subject to an external "point of sale" inspection performed by the city. The inspection revealed several violations that needed to be repaired prior to occupancy permit being issued. The repairs will not be complete by the agreed upon closing date and the seller is not offering any concessions for failing to perform and failing to meet the timing of the contract. What do I do?
It depends on the contract and also what your objectives are. You really need an attorney to consult and advise you.
This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are reviewed and discussed. That has not occurred.
The terms of your contract determine the remedies you have. Also, there are many other factors to consider before deciding what you can do including how long will it take to cure the breach and your personal goals. You should contact an attorney to discuss this matter thoroughly.
Disclaimer: This answer is for general purposes only and does not establish an attorney-client relationship.
I am not licensed in Ohio, so this answer will have to be academic/generic by necessity. Please be sure to consult with a good local real estate to be `100% sure my analysis is accurate for your jurisdiction.
I’m sorry, but these sorts of issues (e.g., contract construction, timing, permitting, third party decisions relating to conditions precedent, minor v. material breach, remedies, earnest money deposit provisions - are all entirely fact-driven, literally impossible to answer unequivocally here on the web without (at the very least) reviewing the express terms of your purchase and sale agreement and inquiring into the posted facts.
Plus, as my colleague has noted, you don't really identify your goals here (i.e., do you wish to be free of the contract altogether; do so, but also seek damages; wait to get the permit right to close, but get "concessions," sue the seller, etc.).
My advice here would likely be the same as if you had asked me about purchasing the property in the first place (i.e., and agreed to complex contract terms!!) One should ALWAYS consult with - and retain - a good local real estate attorney when buying or selling real estate - and that applies no matter where one might reside.
Here, a good RE lawyer - with substantial experience in contract law, closing protocols and negotiation - can more thoroughly review your contract docs than we could ever do here, investigate and judge the facts, and then help you determine your (best achievable) goal, and map out a proper strategy to achieve it by negotiating with the seller (or litigating if need be).
Hope this helps.
This communication is not intended in any way to establish an attorney-client relationship, nor provide legal advice; it is submitted by its author simply as a general comment on the facts contained in the Question posed. NOTE: This attorney contributor is NOT actively seeking new clients.
It's not clear the seller has breached the contract. As you have stated the facts there may be two conflicting contract provisions. They probably don't conflict t in context. A good litigation lawyer in your area who handles real estate disputes should be able to review the paperwork, discuss your goals, and give you some advice.
Like any real estate transaction, whether or not a breach of the Sales Contract occurred will depend on the specific language of the contract. That being said, many municipalities that require occupancy permits pursuant to POS inspections may allow for a temporary occupancy permit to issue which will allow the deal to close. Typically they will require a deposit into escrow in the estimated amount of the repairs needed. Then, after a specific time period (for example 6 mo's) the repairs must be completed and a new POS inspection performed. If the repairs pass the inspection, the money will be released back to the person depositing the funds, if they are not completed within the given time frame, then the money in escrow is used to make the repairs. This is known as the Buyer assuming the violations. Its a good idea to contact an attorney regarding your situation because you may have other rights and remedies available to you.
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