This section is from the book "Practical Real Estate Methods For Broker, Operator & Owner", by Thirty Experts. Also available from Amazon: Practical Real Estate Methods for Broker, Operator, Owner.
It is usual in contracts relating to tenement nouses, to insert a clause relating to compliance with tenement house law requirements, and the fairest clause is one which calls upon the seller to comply with all department notices issued up to the time of the execution of the contract, and calls upon the purchaser to sustain the burden of complying with any thereafter issued. If the seller agrees to comply, at the time of closing with all notices or requirements of a municipal department, he puts himself in the power of the purchaser, who may procure action by a department requiring work to be done, after the signing of the contract, which may impose considerable hardship upon the seller.
It is, of course, unnecessary to specify in the contract any incumbrances which it is the intention of the seller to dispose of prior to the time of closing, but if it is the intention of the seller to dispose of such incumbrances, as for example, taxes, judgments or mortgages, at the time of closing title, it is well to make a reference to such incumbrances in the contract, and to state that they are to be disposed of at the time of closing title, out of the consideration money to be then paid. This makes the satisfaction of the encumbrance a simultaneous transaction with the payment of the consideration, and may save the seller from being in default in his performance of the contract.