Sellers Be Ready for Required Municipal Inspections

In many communities it is required that if a property is sold that a dye/smoke test or occupancy permit is done. It most standard sales in the state of Pennsylvania, this seller is required to take care of these inspections if required. When the seller may not take care of these is when the property is owned by a bank. The bank may require the buyer to take care of these items.

An occupancy permit is to make sure, more so for older buildings, that several things are safe and ready to move in. For example, electric wiring, ground wires, chipping paint, stair railings, etc. . . .

A smoke/dye test is when a a certified inspector, often times a plumber, will come to the property for sale to make sure the water drains are going into the storm sewer and not the regular sewer lines. In most cases, if this is required by the local municipality, they will not release certifications needed for closing unless this is completed.

Now interestingly enough, I recently dealt the a transaction where the municipality required this (but not on new construction) on existing properties. One thing to be careful is, to make sure that if you are the seller that you are getting it done from the required company. Some municipalities require their plumbers or contractors to do this. I received a letter from this municipality telling me what contractors they use. When the seller went to have it done, they would not release the certification because we did not use their suggested contractor. Hmmm. . . make sure whether or not it is pertinent that you uses their suggested contractors. I think it will work out but hoops may need to be jumped through.

Always check or have your agent check for you that you are using the proper contractors required to get your approval. You will save yourself some trouble.

Leave a Reply