Realtor says we can't pull HVAC permits in time, how worried should I be?

Yvonne, I'd push back on "we won't get permits in time" before accepting it. In Maryland your journeyman can't pull the permit, but a licensed master HVACR contractor can, and a lot of installers work under a master's license for exactly this reason. Ask your installer whose license he normally works under. If there's a master behind him, that company pulls the Montgomery County mechanical permit and he does the install. It's also worth asking why the buyer wants it permitted. I've had plenty of buyers ask whether permits were pulled and nothing ever came of it. Still, I'd want this one done right. I'm not an attorney, but unpermitted work can come back on a seller later. If a future buyer or inspector starts digging and something went wrong with the install, a missing permit is the kind of thing that can turn into a financial headache down the road. If the permit truly can't happen before closing, you still have options before the deal is at risk. You can ask the buyer to amend the addendum and extend the deadline, or allow the install shortly after settlement with funds held in escrow at closing (check with the buyer's lender first, since not every loan allows it). You can offer a credit instead and let the buyer choose their own contractor. Or get the second installer's timeline, because the price difference may be cheaper than a delayed or dead deal. Whatever you choose, get it in writing before any contract deadline passes. Missed deadlines kill more deals than the HVAC ever will. Mike Fielder, REALTOR® | The Key Home Team of Cummings & Co. Realtors

I wouldn't assume the deal is doomed, but I also wouldn't proceed with a new HVAC installation without confirming the permitting requirements first. The fact that your installer is a journeyman doesn't necessarily mean the permit cannot be obtained. Permit requirements vary by jurisdiction, and the contractor may be able to work under a properly licensed contractor or have the required permit pulled by someone who meets the local requirements. Since the buyer's addendum specifically requires the HVAC system to be **new and working before closing**, you should treat the permit issue as something that needs to be resolved—not something to leave until the last minute. I'd contact the local building/permit department directly and ask: * What permit is required for the HVAC replacement? * Who is legally allowed to pull it? * Can the installer work under a licensed contractor? * What is the current turnaround time? * Is an inspection required after installation? I'd also have your agent and installer coordinate with the buyer's side so everyone understands what will be completed before closing and what documentation will be provided. Your Realtor may be right that the timeline is difficult, but “we can't get a permit in time” is very different from “the permit department has confirmed it can't be done.” Get the answer directly from the authority having jurisdiction before making a decision that could jeopardize the transaction. Juan Picos Real Estate Agent JohnHart Real Estate

Can you get a different agreement to escrow for repairs to be done after closing? That way, you can still close & the repairs are still done. Usually the escrow is 1.5 times the estimated cost. Both the buyer & seller sign off when the work is done, and any extra goes back to the seller. Used in WI all the time for septics when the sale is in winter. Usually in my state, when permits are pulled, the owner OR the contractor pulls them. Who does he work for? Get his boss to do it.

Yvonne, read the exact words of that addendum before you do anything else, because "new and working before closing" and "permitted and final inspected before closing" are two completely different obligations, and most addenda only require the first one. That distinction is probably your whole problem, and it is probably solvable. A permit final inspection routinely lags the installation by days or weeks in every jurisdiction I have worked with or across. That is normal, not a red flag. If your addendum says the system must be new and operational by closing, a properly installed system with an open permit satisfies it. If the addendum actually says permitted and finaled, that is a much harder deadline and you need to deal with it head on. Go pull the document and read the sentence. Do not rely on anyone's summary of it, including your agent's and including mine. On the installer problem: in most jurisdictions the permit is pulled by the licensed contractor of record, not by the individual person swinging the tools. So the usual fix is not to abandon your cheaper installer, it is to have him work under a contractor who holds the license your permit office will accept, with that contractor pulling the permit and standing behind the work. Ask your installer directly whether he works under a licensed contractor who can pull it. A lot of good journeymen do exactly that. If the answer is no, then you are choosing between a cheaper unpermitted install, which will follow this house to the next sale and can also void the equipment warranty, and a more expensive permitted one. That is a real tradeoff, not a trick question. On whether your agent is telling you the truth: stop guessing and call Montgomery County permitting yourself. Ask them two things. What is the current turnaround for a residential HVAC changeout permit, and do you issue over the counter or by review. Many jurisdictions issue mechanical changeout permits same day or online precisely because they are routine. Others are genuinely backed up. One phone call tells you which one you are in, and then you will know whether your agent was reporting a real constraint or repeating a general impression. I would not assume bad faith. I would just verify, because it takes five minutes and it changes what you do next. I will be straight with you about one thing rather than guess: I looked into whether a Maryland journeyman can pull a permit on his own, and the sources I checked do not agree with each other. Some describe the Master license as what carries permit authority, others describe journeyman permit-pulling. Since Maryland issues the license at the state level but permitting is administered locally, your county is the only authority that matters here, and they will answer it for free. I would rather tell you that than hand you a rule I cannot stand behind. If the timeline really is too tight, you have better options than blowing up the deal: Amend the addendum so the obligation is installed and operational by closing, with the permit finaled afterward and a holdback in escrow to guarantee it. Buyers accept this constantly, because the money protects them. Set the holdback high enough that the buyer is genuinely covered, commonly one and a half times the estimated remaining cost, and spell out who releases it and when. Get the extension in writing before the deadline passes, not after. An expired deadline hands the other side leverage you did not have to give them. One more caveat: I am a real estate professional, not an attorney or a licensed mechanical contractor, so have your agent's brokerage or a Maryland attorney look at the amendment language before you sign it. Short version: you are probably not about to blow this deal over nothing, but you might blow it by letting a deadline lapse while you wait for clarity. Get the addendum language read today and Montgomery County called today. I work in California, on the South Bay and Palos Verdes side of Los Angeles, so I am not the right person to handle this file, and a good Silver Spring area agent should be able to sort the permit question out in an afternoon. If you want a second read on the amendment wording before you sign it, I am Zoltan Peresztegi and I am glad to look at it. Zoltan