QUESTION
FL given clean title, selling 1.5 yr later buyer finds open permit from 18 years ago... help pls
Asked on May 15th, 2014 on Real Estate - Florida
More details to this question:
I purchased a home in jan. 2013 that was owned by an HOA (deed in lieu) and an estate. I paid title search and insurance, and was given a free and clear title with no open permits. The original search was done in Nov 2012 and we closed Jan 2013. I have the property under contract to sell and the same title company is serving the buyer and has now found an open permit with our cities building dep. Open permit is from 1996 for AC install. Open permit was not found on my title search. The title company is not assuming responsibility for the "defect" of their search as they were given incorrect information from the city. The city claims a temp working provided the incorrect information and said its our problem. I inspected the AC unit and saw the entire system was replaced in July 2012. I contacted the lisenced contractor who the HOA hired in 2012 to replace AC, they admitted install and said they would find their perm., I know there is no perm opened, and company won't answer my calls.
1 ANSWER
Asset Protection Attorney serving Vero Beach, FL
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Charles H. Sanford Law Offices P.L.
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Well, I 'm unclear on what you are asking. I assume you are asking who is responsible. First, technically an open permit is not a defect of the title. An open permit would never appear on a "title search" It affects the property itself, but doesn't operate as a cloud on the title. The role of the title company is limited to matters of title. Also, they are not lawyers and don't act as legal representative of the parties to advise buyers of the need to check for open permits.
Typically, florida contracts places the burden on the buyer to inspect the property to determine whether there are any open permits (inspection services do this regularly).
Note: There is a provision in most contracts which says that Seller is not aware of any open permits. This might be interpreted as a Seller's warranty but it is very watered-down and it's unclear whether it is enforceable after closing.
The best way to deal with it is to open a new permit for the AC and then have it closed.
Charles Sanford 772 492-1695
Answered on May 15th, 2014 at 4:43 PM