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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 7404
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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This question is in regards to a residential property

Customer Question

This question is in regards ***** ***** residential property (single family home) located in Cincinnati, Ohio.
My corporation was the owner of the property. The property was fully rehabbed. Then the corporation sold the property in March 2016. I was also the listing agent for the property.
I received a call about a week ago from the buyer’s agent. The agent said that the buyers had to pay $1500 two months after closing to upgrade the electrical panel on the house. The buyers want to be reimbursed the $1500.
The City of Cincinnati sent a violation letter to my corporation on October 14, 2015 stating that they require plans to be submitted and permits to be pulled for rehab projects. They did not specifically talk about an electrical permit. Instead they made a general statement that the entire project needed plans and permits. They said in the letter that if they did not hear back from my corporation within 10 days that they would post the violation letter on the property. The city never posted the letter on the property. When they mailed the violation letter they sent out 3 letters to 3 different addresses. The first address was not an address that is associated with my company or myself. I don’t know why they used that address. I have never heard of that address. The second and third addresses they sent the letters to should have forwarded those letters to my UPS store box in Cincinnati, however the letters never made it to my UPS store box. Both addresses were set up to forward all mail to my UPS store box in Cincinnati. The bot***** *****ne is that I never received any notification that there was a violation. The city said in the letter that they would stop work if plans and drawings were not submitted and permits were not pulled. They never stopped the work that was being done. No inspector ever showed up to the property to stop work. I had no idea that there was any kind of problem, because we never received the violation letter in the mail, the city never posted the violation letter on the property and the city never stopped the work that was being done.
I had a supervisor overseeing the rehab job. The supervisor and the contractor came up with a plan for the electrical work that needed to be done on the property. The contractor’s electrician performed the electrical work. The contractor said the electrical work that was done was more than sufficient for the needs of the house. He also said that the work was performed properly and that the electrical work is of course safe for the new buyers.
After the house was fully rehabbed, it was put on the market and sold.
My question is
Do I need to pay the buyers $1500 for the work that was performed after closing even though I never received any notification from the city that there was a violation?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Irwin Law replied 1 year ago.

It will take me a little time to get through your question, but I will get back to you with an answer shortly.

Expert:  Irwin Law replied 1 year ago.

The repair items that you mention are clearly within the inspection radius of the buyer. Both the notices from the city as well as the quality of the work are the responsibility of the buyer using due diligence before closing. I see no reason for you to be overly concerned about the buyer's demand.