Table of Content
- Why homeowners skip getting permits
- Should I Sell My House Now or Wait? Count These Factors First
- You will take over responsibility for the work with no permits.
- Buying a Home That Has Been Remodeled But Without Permits
- responses to “Buying a home that has had work performed without a permit?”
- Option 1: Work With Your Local Building Department To Get Retroactive Permits
Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Ariana Chávez has over a decade of professional experience in research, editing, and writing. She has spent time working in academia and digital publishing, specifically with content related to U.S. socioeconomic history and personal finance among other topics. She leverages this background as a fact checker for The Balance to ensure that facts cited in articles are accurate and appropriately sourced. Elizabeth Weintraub is a nationally recognized expert in real estate, titles, and escrow.
Before you get too alarmed, keep in mind that unpermitted work is fairly common, and there are things you can do to resolve it. Deciding the best option for you might depend on how good of a deal you’re getting on the home and the type of unpermitted improvement. An unpermitted garage or sunroom is a bigger deal breaker than a simple outlet. In that case, you should always play by the rules and get a building permit. Bill Gassett is a nationally recognized real estate leader who has been helping people buy and sell Metrowest Massachusetts real estate for the past 32-plus years.
Why homeowners skip getting permits
This could mean receiving a credit from the seller to cover future permit applications and fines. It could also mean a reduced sale price that takes this unpermitted work into consideration. Just make sure that the appraisal value matches the new list price and that your lender will still finance the purchase. Replacing an entire air conditioning system or adding on an addition without pulling the required permits is another.
Selling your unpermitted home as-is may be a better option as it can save you the time and hassle of obtaining the permits on your own. Especially if you your home needs a lot of work and is in poor condition. However, remember that most home buyers are not particularly interested in buying homes without permitted work. You will see this reflected in the offer amount you might receive for your home.
Should I Sell My House Now or Wait? Count These Factors First
If unpermitted work is disclosed, the buyer will assume future responsibility. If your permit is approved, you’ll receive an official license. Depending on the complexity of your project, this permit could be approved on the spot, or need additional review. For many homeowners, this small detail slips through the cracks, then becomes a problem when they want to put their house on the market. Use HomeLight’s Simple Sale platform to sell when you’re ready without the hassle of paying for repairs, prepping for listing, or dealing with showings.
For instance, if someone falls and gets hurt in an unpermitted addition, trying to collect on your insurance policy could see you going through a complicated lawsuit. Unpermitted work is construction on a home that does not carry the necessary permits to make it legal per local ordinances. Additions to homes and finished basements are some of the most common. “There are more checks and balances when work is permitted,” Angeli said, “because there is a licensed contractor and a city inspector involved. The home inspector will go through the home carefully looking for construction issues, both visible and invisible, as well as any other problems that could give you a headache down the line. The tools for this inspection may include moisture meters, infrared cameras and other devices that can help uncover hidden defects.
You will take over responsibility for the work with no permits.
Whatever method you choose to deal with the unpermitted work, it’s important to address the problem before the sale closes. “Once the house is closed, the unpermitted work is now your responsibility as the homebuyer,” Sanchez said. If you bought a house with unpermitted work or did work without a permit while you owned it, you may run into difficulty when you’re ready to sell.
Plus, an older house will either have been built better - or is showing poor construction by now. Worst case scenario, they may have to remove part of or all of the improvement and you as the new buyer would have to live without it . A few things can go wrong if you decide to buy a home that has been remodeled without permits. Anecdotal evidence suggests that most homeowners do not get permits for the remodels that they do. For this reason, it may hard for you to find a home to buy in which all work done is covered by permits.
Buying a Home That Has Been Remodeled But Without Permits
“If the unpermitted work isn’t allowed at all, the city inspectors can make the homeowner tear down or remove the renovation or addition,” says Hillman. And if the inspectors don’t make the homeowner tear something out, you can at least expect a tax assessment for any improvements. Whether you should opt to get a retroactive permit depends on your time and budget. If you’re on a tight timeline, you might decide to list your property without permits and disclose the work, understanding that the home could sell for less. If you have the time, getting permits now could mean a smoother sale and higher offers from future buyers.
It is also advisable to ensure good relations with these people as you will be meeting them several times. Permits for your home projects serve to ensure that your plans comply with the local standards of land use, zoning, and construction. By going through your local government agency, you can ensure not only your safety but that of future owners of your home. Most communities would rather have you point out the fact work was done without permits and get the problem squared away.
They do so knowing that the garage conversion, swimming pool or other renovation was completed without permits because the house costs less. Other times, the seller fails to disclose unpermitted additions. A seller might do this because they did not know about the work or because they did not want to risk a low appraisal. If unpermitted work was cleverly disguised, the home inspector, appraiser or title company might even have missed it!
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote stricteditorial integrity in each of our posts. The seller needs to get this straightened out, at their own expense. Plus, Partner Agents also offer on-demand showings — sometimes in less than an hour — so you know you won’t miss out on your perfect home.
Maybe the finished basement built by the previous homeowner with the fancy kitchen that sold the home has to be ripped out or you'll have to pay a penalty. Locally, here in my area of Grafton, Mass., this is exactly what they'll make a homeowner do without permits being pulled. A reputable contractor may not work without a building permit. On the other hand, there are shady contractors that'll do whatever they can to put more money in their pocket. Sometimes homeowners will do the work themselves, either not realizing a permit is needed or just skipping out, as well. Houses like these are often found in centers of big cities with cheap parking stands for floating objects.
Or, maybe as someone who didn’t want the local property taxing authority to know about any improvements that could cause property taxes to go up. In short, the presence or absence of building permits doesn’t have a big effect on the home inspection. We may be more suspicious of work that has all been done by a handy DIYer, but we’re always even more suspicious of work at flipped houses, permits or no permits. Not only do most people not know what work does and does not require a permit, but the question that is asked on the seller’s property disclosure statement isn’t a great question. It doesn’t ask about whether the work was inspected or approved. Obtaining a permit is simply the first step, and should not be considered critical information.
responses to “Buying a home that has had work performed without a permit?”
However, there are potential financial penalties for remodeling without a permit, including a civil penalty of up to $5,000 per violation in California. The buyer ended up canceling the transaction because of the missing permit. Depending on the complexity of the work you plan to do, you might need multiple permits for construction, electric, and plumbing.
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