When selling your house, you may come to find that you have some unpermitted work. When this happens, it’s imperative that you begin to take certain measures to rectify the situation.
Selling a house with unpermitted work without disclosure can open you up to legal action from the buyer. So, when selling a house with unpermitted work, how do you go about it?
What Is Unpermitted Work?
In a general sense, unpermitted work refers to construction or home improvement efforts done in a home without receiving the necessary permits under local ordinances. In the United States, the vast majority of home improvement projects require a permit before you can proceed.
Of course, this depends on the nature of the work. For instance, minor improvements like a new coat of paint, small electrical repairs and installing new floors would not require a permit.
However, major works such as adding a new wing or basement or putting up a new fence would require that you get the appropriate permits.
The purpose of these permits is to ensure that whatever work you’re doing is up to standard and would not constitute a safety hazard. It is also to ensure that you’re complying with the local policies dictating construction, zoning, and land use
Why Can Your House Have Unpermitted Work?
There’s a chance that you’re not even aware your house has unpermitted work. You might only find out when you’re trying to sell. So, why do homeowners skip permits?
Process Can be Time-Consuming
Usually, getting these permits can be a hassle sometimes, and can effectively interrupt your intended construction timeline. So, homeowners sometimes go ahead with construction or improvements without going through the process.
Constantly Changing Laws
It’s possible that the laws changed while you were living in the home and you would only likely find out when you’re about to sell. It’s not uncommon for construction laws to change as they are constantly evolving.
They Can Be Costly to Acquire
House permits can cost a pretty penny, and it’s possible that the previous owner decided to skip that cost. In such a situation, see about contacting the previous owner if possible. Otherwise, you would have to handle it before proceeding with the sale.
How Can You Tell That Your House Has Unpermitted Work?
Determining whether your home has unpermitted work and just how much is imperative to doing something about it. It’s practically impossible to tell off of just examining your home, so, here are some ways you can confirm.
Review the Original Blueprints of the House
To differentiate what work was done to the house after initial construction from those done after, reviewing the house’s original blueprint can tell you everything you need to know. You should typically find this among your purchase paperwork.
However, if it’s missing, see about contacting the previous owner or the initial contractor or searching city records. If your home is in a neighborhood with a homeowner association (HOA), see about contacting them to check if they have a copy.
The blueprints would help you note any new inclusions in the home.
Visit the City Building Permit Office
You can visit the permit office in yoi city to review the records and see whether your home is in accordance with the plans of the permits. If it isn’t, then there’s a good chance that some things were done without the necessary approval.
Pulling records at the city office is free, and pretty straightforward. These records carry all the information and the entire history of your home in relation to permits. Carrying out this due diligence is necessary to ensure nothing blindsides you during the sale.
What Are Your Selling Options?
If you’ve done your review and discovered that you have unpermitted work, there are three selling options that you can explore.
- Acquire permits and list
- Offer a contingency
- Sell as-is
Acquire Permits and List
This involves acquiring the necessary permits for unpermitted work done in your home before listing it on the open market. You should know that this process can be pretty time-consuming and expensive too.
To get a retroactive permit, you would first have to reach out to the local building permit office in the county or city to confirm you can acquire these permits on your own.
You would likely get a visit from a building department inspector who would examine the construction to certify that it is up to the current building code. In the event that it isn’t, you have two options:
- Get rid of the unpermitted work, so that the house goes back to its original state
- Obtain a legal exemption that allows the work to remain in place — “grandfather it.”
The cost of certain building permits usually vary based on the type needed and your location. The average cost of a building permit on a national scale is $1,424.
Offer a Contingency
Offering a contingency refers to giving the buyer a discount on the selling price to handle necessary repairs by themselves. The downside to this is that potential buyers may try to drive your house value even lower. This approach usually involves a lot of negotiations, and the deal could fall through.
Sell As-Is
The easiest and fastest option is to sell your house as-is to a local cash buyer. This option implies that you don’t have to bother about the unpermitted work. You wouldn’t have to handle repairs or renovations, and you can get the cash value of your house in as little as seven days.
Who’s going to buy? We can help out with that! We buy houses that need serious repairs or are in various other conditions. At dsouzahomebuyers, we can provide you with a cash offer for your house in no time!
You don’t have to deal with any of this hassle. No need for repairs or renovations!
Fill out this form to get the process started, and we could be closing in as few as 7 days! Remember, no fees, no commissions, no closing costs!
If you have any other questions, definitely call us at (925) 503 8193.
Final Thoughts
Unpermitted work can get in the way of your sale, and if you’re on a timeline, this can especially be frustrating. If you don’t want to go through the process of making corrections and then listing, you can choose to speed things up by selling as-is. Of course, ensure you’re making an informed decision by reviewing the options available to you first.
