Newsflash: Just discovered seller did not pull permits for work done on unit. Please advise.

Need a little bit of guidance here. My husband and I are first time homebuyers. We went into contract on a property about 3 weeks ago. Inspection turned up a few minor issues, nothing glaring in my opinion (then). The city came out to do a re-occupancy inspection and discovered that the AC was installed without a permit. The seller contacted me saying that she does not want to delay the closing by pulling permits, and the other alternative would be me signing off on the unpermitted work and paying a 500 fee which she would cover.I’m going down to the City Office today to speak with someone because it’s unlikely that paying the 500 dollars would make the unpermitted problem go away in the eyes of the city. I would think that we would be required to pull permits and bring it up to code. Someone correct me if I am wrong.The other issue that I see now is she did do some electrical work to the unit and now it’s probable that it was done without a permit as well. Will ask today.How should we proceed from here?



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