As I signed up a client last week, there was a clause in the contract about permits for the new garage. My client said to me, "Barry, have you received the final, approved inspection for the garage from the City of Edmonton?"
Here's what the contract clause said: "Seller to prove garage is fully permitted on or before closing by providing approved building permit..."
And, guess what, that's exactly what the seller provided, a fully approved 'Development and Building Permit .'"Great!" says my client, "We're good then."
He wasn't very happy when I told him the fully approved permits were not what he was looking for but rather the "final, approved inspection" from the City.
Applying for and getting fully approved permits is one thing. The final inspection is another thing altogether.
For final inspections, sometimes the City puts a sticker on the electrical box with words like, "secondary suite approved." Sometimes they don't, and then you need a 'Permit Services Report,' which indicates the development is fully approved.
An improved clause would be:
"Seller to prove garage is fully permitted on or before closing by providing approved development and building permits and the final, fully approved Permit Services Report...".
When trying to nail down permits in the contract, don't forget about the final, approved inspection.
Protect yourself.
Cheers,
Barry
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