Short answer is NO!
The long answer is in several parts. First, title, and title insurance, is about marketability of the title to the property. Does the person who will be signing the the deed have the ability to do so? And do so without the Buyer assuming any undisclosed liens?
Language to protect the Buyer is now added to most of the Contracts I see. This is because we have all learned the hard way that without it the Seller doesn’t need to do much to remedy any unpermitted work, nor work that was done with a permit that was not closed out. Good agents will look into permits during the Inspection Period but soem do not. Only to find an open or expired permit when the Municiple Lien search of the Title agent comes back. But by then the As-Is period has ended. Why does that matter?
The FAR BAR As-Is Contract specifies in paragraph 12(a) that: “Unless Buyer exercises the right to terminate granted herein, Buyer accepts the physical condition of the Property and any violation of governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to Seller’s continuing AS IS Maintenance Requirement,” Thus, by going past the As-Is period the Buyer is accepting any permit issues which are violations of “building…codes.”
And, 12(c) states: “SELLER ASSISTANCE AND COOPERATION IN CLOSE-OUT OF BUILDING PERMITS: If Buyer’s inspection of the Property identifies open or needed building permits, then Seller shall promptly deliver to Buyer all plans, written documentation or other information in Seller’s possession, knowledge, or control relating to improvements to the Property which are the subject of such open or needed permits, and shall promptly cooperate in good faith with Buyer’s efforts to obtain estimates of repairs or other work necessary to resolve such permit issues. Seller’s obligation to cooperate shall include Seller’s execution of necessary authorizations, consents, or other documents necessary for Buyer to conduct inspections and have estimates of such repairs or work prepared, but in fulfilling such obligation, Seller shall not be required to expend, or become obligated to expend, any money.“
