Hi,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 ...

Question

Hi,

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.

In reviewing the sellers disclosure notice, they checked "no"next to if they were aware or had done any room additions/renovations that require permits. They then select "yes" under major improvements done citing the pool etc.

Please help on if I have a small calims case and who it would be againts.

Thanks!

Eric

Answer

Eric, you may have a claim against both realtors which may be covered by their errors and omissions insurance based on the facts and actions/inactions you discussed above. Not knowing exactly where the fault was 100%, its best to include everyone who was liable wish may also include the sellers.