As Is Contract

Under the FAR/BAR “AS IS” contract, the Seller is obligated to disclose any Open/Expired Building Permits, Code Violations/Citations, or Cases, as well as unpermitted work to the Buyer. However, it is the Buyer’s responsibility to handle the closure of Open/Expired Building Permits and resolve any active Code Violations/Citations or Cases, with the Seller’s assistance as described in Item 12 (c) of the contract. It’s important to note that the Seller does not have any financial responsibility in this regard.

Monroe County Local Rider

Nevertheless, if the Monroe County Local Rider is checked, it shifts the responsibility to close Open/Expired Permits and resolve Open Code Violations/Citations or Cases to the Seller at the Seller’s expense. The Rider also allows for a 15-day extension to the closing date if the Seller cannot close these issues in time. If the Seller fails to do so within the extended period, the Buyer has the option to cancel the contract or accept the property with the outstanding permits or code violations.

Open/Expired Permits are not considered title defects, but an active Code Violation/Citation is seen as a title defect under Standard 18 A (ii).

Resolve Open or Expired Permits

To resolve Open or Expired Permits, the Buyer must contact the relevant Building Department to determine the necessary corrective actions. Some permits may be closed administratively, while others may require the involvement of the “contractor of record” to open the permit and schedule inspections, possibly incurring additional fees. If the “contractor of record” is no longer in business, or if the unpermitted work needs to be inspected and redone, it could potentially cause delays or property damage. Hence, prompt action and cooperation are essential to avoid any issues during the transaction.

Regarding Code Violations, the Monroe County Code Violations Department or the relevant city department can provide information about the nature of the violation and the required corrective action. There are two categories: Code Violations that are not the subject of a Citation or an active Code Case, for which the Seller discloses but does not need to rectify; and Code Violations subject to Citations, which the Seller must disclose and resolve as a title defect under the “AS IS” contract.

Unpermitted Work

Unpermitted work refers to any improvements made to the property without obtaining required permits from Monroe County or the local governments. The Seller is obligated to provide written notice to the Buyer about such unpermitted work. The “AS IS” contract stipulates that if unpermitted improvements are identified, the Seller must promptly deliver all related plans, documentation, or information to the Buyer and cooperate in obtaining estimates for resolving the permit issues. However, the Seller is not required to bear any financial burden in fulfilling this obligation.