Buying a home without of permit for remodeling comes with a lot of risks. Searching for a home to buy can be an exciting undertaking, but there are numbers of factors to consider before purchasing a house. You should find out if the house has a permit for remodeling and if the home you are about to buy has had improvements, you need to know whether those improvements were permitted.
Most times, homeowners end up with unpermitted renovations to save time and money. Your county building inspector has to ensure that all homes comply with the existing laws that pertain to home remodeling. They also have the authority to enforce the rules. What happens if you are buying a house without a remodeling permit? Here are some risks involved:
You will not be aware of renovations
One of the dangers of buying a property without a remodeling permit is that the buyer will not know about the past improvements that have been done. There are disparities in state laws when it comes to the amount of information a seller must disclose to the buyer. It is always better if a seller can still provide a buyer with all the necessary documentation.
The Buyer will be responsible for fixing the problem
If the code enforcement department in your locality discovers that you the buyer is working on remodeling without a permit, you are regarded as the current occupant of the home and will be responsible for the payments of penalties and licenses. This applies even if the occupant has just purchased the house and knew nothing about it. To fix the issue, you might be required to make minor changes or tear down some parts and rebuild. You might also be ordered to remove all the unpermitted remodeling.
You may be asked to pay back taxes
Owing some taxes is another risk associated with buying a house without renovation permit. If the taxing authority in your locality discover that remodeling took place without permission, the present occupant may be liable for paying back taxes due to the increased value of the home. Apart from paying back taxes, it could also attract penalties and interests which would cost you more than you initially planned for.
If the remodeling work is done without a permit, it may not be covered by your insurance.
In most cases, unpermitted remodeling is not covered by insurance. Therefore, if anything happens to any unpermitted addition in the home, the claim will be denied by your insurance company which could set you back thousands of dollars in the future.
Make sure to speak with your real estate agent to confirm that you have all the necessary rights to remodel your new home to your taste without penalties.
About the Author
Wendy Wiegand
As a premier real estate agent in Carlsbad, I’m here to provide you with all the resources and information you need to buy or sell real estate. I work with buyers and sellers in Carlsbad, Encinitas, Oceanside, San Marcos, Vista and the surrounding areas and I’ve had extensive training in the latest real estate marketing strategies. I’m confident that I can offer you knowledge and tools most other agents can’t.
I believe in service, both to my clients and our community. When working with clients, you can be assured I am focused on providing the most comprehensive and dedicated effort so that you can achieve the best results possible when buying or selling real estate. I am also deeply involved in serving our community, as you and I all call it home. I have been a member of Rotary since 2003, have been an active member of the Carlsbad Chamber of Commerce since 2006, and serve on the board of the Agua Hedionda Lagoon Foundation. Perhaps my even deeper service to my clients and our community is Wiegand Realty’s participation in Business for a Cause.
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