Buying a House With Unpermitted Work: What To Do About an Unpermitted Addition?

Permitted vs. Unpermitted Work

When you are making additions or renovations to your home, many of these adjustments require a permit from the city. People may not pull the correct permits to add additions to their home like a guest house, expansion, or basement.

Why a Homeowner Wouldn’t Pull a Permit

It might seem like good sense to pull a permit before beginning any work on your home– and it is. However, there are several reasons why a homeowner might choose to proceed with work despite a lack of permit.

First and foremost, permits can be very expensive. The more expensive the project gets, the more expensive your permits will be. If people are already strapped on cash before starting their project, they might choose to forego a permit for budgetary reasons.

Sometimes, city codes and laws can be vague with what truly requires a permit and what does not. Due to this vagueness, homeowners might air on the side of asking for forgiveness rather than permission and not think about the future struggles with selling their home.

The Risks of Unpermitted Work

While it may seem like having an unpermitted addition is no big deal, it can cause a lot of problems when it comes to the sale of the home. First, an insurance company may choose to void your coverage or choose not to cover damages if the addition suffers or causes damage that would otherwise necessitate a claim.

Next, having an unpermitted addition could affect your appraisal, causing the sale to fall through. An unpermitted addition means that the square footage is not included in the addition, which might mean your home is worth less than you thought.

Finally, while a homeowner can try to resolve their permit issued during the sale, it can cause them to incur fines or even have to take the addition or work down altogether. Make sure that you work with your seller on any unpermitted additions.

A qualified real estate professional who is familiar with the buying process will be able to offer advice on what to do about an unpermitted addition.

Conclusion

No house is perfect, but unpermitted additions can cause big problems in the sales process. If you’re in love with a property with an unpermitted addition, talk to your agent about how to proceed.