Common use of BUILDING CODE VIOLATIONS Clause in Contracts

BUILDING CODE VIOLATIONS. To the extent that the Property is subject to building code violations (the “Code Violations”), Sellers agree that prior to the Closing they will pay all accrued fines and penalties with respect to the Code Violations and any new building code violations that occur between the date of this Agreement and the Closing Date (but not including any new building code violations arising from the acts or omissions of the Occupancy Tenants). In addition, Sellers agree that they will use commercially reasonable efforts to correct each of the Code Violations and cause the applicable governmental authority(ies) to issue the appropriate notice(s) of correction so that all of the Code Violations are corrected and closed out prior to the Closing Date. If Sellers are unable to correct the violations and close out such violation prior to the Closing, then Sellers shall provide Buyer with a credit, at Closing, against the Purchase Price in an amount equal to the sum of (i) the estimated costs to perform the work necessary to correct and close out any remaining Code Violations, including, without limitation, the reasonable estimated costs of a permit consultant to assist Buyer with correcting and closing out any remaining violations, all as reasonably determined by Buyer and Sellers, and (ii) the amount of any penalties and fines that are anticipated to accrue from and after the Closing Date until such time as any remaining violations are anticipated to be corrected and closed out, all as reasonably determined by Buyer and Sellers (the “Code Credit”).

BUILDING CODE VIOLATIONS. To the extent that the Property is subject to building code violations (the “Code Violations”), Sellers agree that prior to the Closing they will pay all accrued fines and penalties with respect to the Code Violations and any new building code violations that occur between the date of this Agreement and the Closing Date (but not including any new building code violations arising from the acts or omissions of the Occupancy TenantsTenant). In addition, Sellers agree that they will use commercially reasonable efforts to correct each of the Code Violations and cause the applicable governmental authority(ies) to issue the appropriate notice(s) of correction so that all of the Code Violations are corrected and closed out prior to the Closing Date. If Sellers are unable to correct the violations and close out such violation prior to the Closing, then Sellers shall provide Buyer with a credit, at Closing, against the Purchase Price in an amount equal to the sum of (i) the estimated costs to perform the work necessary to correct and close out any remaining Code Violations, including, without limitation, the reasonable estimated costs of a permit consultant to assist Buyer with correcting and closing out any remaining violations, all as reasonably determined by Buyer and Sellers, and (ii) the amount of any penalties and fines that are anticipated to accrue from and after the Closing Date until such time as any remaining violations are anticipated to be corrected and closed out, all as reasonably determined by Buyer and Sellers (the “Code Credit”). Notwithstanding anything herein to the contrary, the maximum aggregate amount that Sellers may be required to incur pursuant to this Section 6.2, including without limitation, for payment of fines and penalties, the cost of work and services necessary to correct and close out Code Violations, and the Code Credit, shall not exceed $250,000.00.