Hi, We embarked with a sponsor on buying an apartment that he would renovate with his contractors, but to our specifications. We signed contracts, etc. His team brought the plumbing and electric up to code, finished the renovations entirely, and submitted self-inspections to the city. He then told us it's "possible' that the city would want to check the inspections, thus ripping out the walls and... [more]
Hi,
We embarked with a sponsor on buying an apartment that he would renovate with his contractors, but to our specifications. We signed contracts, etc. His team brought the plumbing and electric up to code, finished the renovations entirely, and submitted self-inspections to the city. He then told us it's "possible' that the city would want to check the inspections, thus ripping out the walls and floors. My questions: (1) how likely is it that the city will want to audit? (2) What is the timeframe in which they can audit (as in, when are we in the clear, or is it possible they'll show up 3+ months down the road and want to inspect?) (3) What impact should this have on our closing? We had planned to close as soon as the bank did the final appraisal but suddenly feeling like the city might come at any minute and rip into our home, which if we close, will be entirely our responsibility when it seems like it should be the sponsor's. We've asked him for status updates but all he has said is "We're waiting..." He's been accomodating and wonderful to work with thus far - I have no reason to distrust him - but I don't want to move in and have this looming on us forever! Any guidance appreciated. Thanks,
Ed
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