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Replies (8)
- wetdawgs
- Contributions:26790
I would back up a step in this process. As a home buyer, I would challenge the seller on the areas constructed without permits, and insist that they be permitted and inspected by the city inspectors before moving forward. This is for your safety living in the home. Should you not do this, yes, you are likely to be liable and can't pass the responsibility on to the appraiser.
We encountered this once in the home purchase process, and the sellers spent approx $10,000 to bring it up to code before the purchase was completed.
We encountered this once in the home purchase process, and the sellers spent approx $10,000 to bring it up to code before the purchase was completed.
- Ritu Desai, "VARealtor"
- Contributions:697
Apart from the appraisal, will your hazard insurance cover you for any non-permitted structure?
I would ask the seller to get it permitted and inspected before you close on the home.
I would ask the seller to get it permitted and inspected before you close on the home.
- Mack McCoy
- Contributions:1111
Good thing you asked this question here, Skylar!
Putting aside exactly what the code violations are for a moment . . .
Presumably, the property has more value to you with the unpermitted below-code rooms than a similar house without them, and that's what the appraiser is likely to see, too.
I also presume that you learned about these code violations either through your inspection or a seller disclosure and that you are still within the time frame where you can negotiate with the seller about this.
You will be completely and totally responsible for this unpermitted space after closing, and you will have to disclose this to subsequent buyers.
If the price / value of the place is good enough, you might want to take this on yourself; if not, well, you need to come to an agreement with the seller while you have the time to negotiate. If you are outside of the negotiating time-frame, then you'd do well to ask your agent for a referral to a real estate attorney and contact them today.
All the best,
Putting aside exactly what the code violations are for a moment . . .
Presumably, the property has more value to you with the unpermitted below-code rooms than a similar house without them, and that's what the appraiser is likely to see, too.
I also presume that you learned about these code violations either through your inspection or a seller disclosure and that you are still within the time frame where you can negotiate with the seller about this.
You will be completely and totally responsible for this unpermitted space after closing, and you will have to disclose this to subsequent buyers.
If the price / value of the place is good enough, you might want to take this on yourself; if not, well, you need to come to an agreement with the seller while you have the time to negotiate. If you are outside of the negotiating time-frame, then you'd do well to ask your agent for a referral to a real estate attorney and contact them today.
All the best,
- Dan, "the_country_hick"
- Contributions:4692
A town has the right to demand that all non-permitted construction be torn down. That has happened. The demand and the cost are placed on the current owner. While this may or may not happen the potential is real. Get the permits completed before buying this house.
- Mack McCoy
- Contributions:1111
Well, Dan, before you scare these people out of their wits, under what circumstances? A stair riser was too high? C'mon.
- Dan, "the_country_hick"
- Contributions:4692
Mack, in a town near me there was a building erected without a permit. The town forced that building to be torn down. All it takes is a code enforcement officer to decide they will not accept the illegal addition and then force the owner to put it back to the way it was. It may never be a concern or it could be.
I would not buy into a property with such a strong liability potential without removing all of the value of the additions and complete costs of remediation and some extra for the potential hassles involved.
There was one town near me where the CEO was so hard on construction that builders added 5 maybe 10% to the cost of a new house just to handle that particular town official. It is possible to interpret the rules in a way that is more lenient or more harsh. In that town the CEO was harsh and tough. Do we know how the CEO here will act towards an illegal addition? No we do not. It makes more sense to expect the worst so you do not get hurt if the worst does happen.
I would not buy into a property with such a strong liability potential without removing all of the value of the additions and complete costs of remediation and some extra for the potential hassles involved.
There was one town near me where the CEO was so hard on construction that builders added 5 maybe 10% to the cost of a new house just to handle that particular town official. It is possible to interpret the rules in a way that is more lenient or more harsh. In that town the CEO was harsh and tough. Do we know how the CEO here will act towards an illegal addition? No we do not. It makes more sense to expect the worst so you do not get hurt if the worst does happen.
- sunnyview
- Contributions:25127
Usually code issues can be brought up if they are close to being in range, but you have to really know what you are looking at and how much it will take to bring it up. One common problem is that you may have to open up some walls/floors for inspectors to be able to see wiring or construction methods.
It can really help to have a licensed local contractor come in to take look before you decide what to do with your offer. Often, they know the players in code enforcement/permitting and can give you an estimate of how much it will take to bring it into compliance. Having a licensed professional smooth the way with code enforcement can also really help especially if you run into a difficult inspector.
It can really help to have a licensed local contractor come in to take look before you decide what to do with your offer. Often, they know the players in code enforcement/permitting and can give you an estimate of how much it will take to bring it into compliance. Having a licensed professional smooth the way with code enforcement can also really help especially if you run into a difficult inspector.
- Mack McCoy
- Contributions:1111
Well, for our person, today is the day they have to tell the seller to get the permits before closing.
For future readers of this thread, don't ignore Ritu Desai's excellent point, which is that even if a purchaser is inclined to buy the property with unpermitted additions, they should first determine whether the insurance coverage is satisfactory.
Code violations and unpermitted additions aren't necessarily the end of the world. Most of the time, if your home inspector isn't alarmed, the town or city won't be, either. If the seller had the work done, and they're alarmed at the prospect of getting the work permitted, then, you should be, too!
TU sunnyview and wetdawgs.
For future readers of this thread, don't ignore Ritu Desai's excellent point, which is that even if a purchaser is inclined to buy the property with unpermitted additions, they should first determine whether the insurance coverage is satisfactory.
Code violations and unpermitted additions aren't necessarily the end of the world. Most of the time, if your home inspector isn't alarmed, the town or city won't be, either. If the seller had the work done, and they're alarmed at the prospect of getting the work permitted, then, you should be, too!
TU sunnyview and wetdawgs.
Appraiser included Non-Permitted Areas.. what to do?
Hello!
My husband and I are first time home buyers and we are getting an FHA fee. The home has additions that were made without permits. We understood that an appraiser cannot include the non-permitted rooms that aren't up to code in the appraisal of the house, but he did. Now we don't know if we should be worried...
Any help out there would be greatly appreciated! We need to make our decision today and want to make sure we make a good, informed one. Thank you!!!
Yana & Rick
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