What to do if you are in the process of buying a home and find out it had unpermitted work?

The good news is that you discovered this before you closed on the deal. Depending on how hot your real estate market is, this can give you significant leverage. The simplest course of action is to walk away from the deal if your home inspection uncovers unpermitted work. If you truly love the home, the price is right, and the work was minor, then you have two choices: 1) ask the seller to go back and get the proper permits before closing; 2) accept the house as-is but negotiate a lower price. Keep in mind that you will be taking on the aggravation and potential fines and permit fees of the unpermitted work yourself. You will also have to disclose it when you go to sell the home someday, which will lower the selling price of the home.

What if you buy a home and find out years later that it had unpermitted renovation work?

Sorry, that's bad luck. It is possible to contact your city's permitting authority and retroactively permit the work. Depending on how major the renovation was, it may require you to hire an architect, open up walls, or even demolish parts of your home if, for instance, an addition was built too close to your property line. Keep in mind that, as the new owner, you will be responsible for any fines. If the seller failed to disclose unpermitted renovation work at the time of the sale, and you incurred damages remedying the problem, you may be able to file a civil suit against them or reach a settlement agreement. But don't put the problem off. States have a statute of limitations for how long after the fact you can file a suit. In Washington State, for instance, it's three years. In many other states, it's only two years.

What if my general contractor/handyman/plumber/electrician says I don't need a permit to remodel?

Most reputable contractors and remodeling companies will be upfront and honest with you about the permits that are required by law. After all, it's in their best interest to follow the rules so they don't get fined, shut down, or lose their license. However, there are some less reputable companies that will offer to do unpermitted work. As the homeowner, it's in your best interest to verify whether the remodeling work requires a permit or not. If you find out that you are required to get a permit and the company you hired is willing to continue without one, you might need to ask yourself where else they are willing to cutting corners. An offer to do unpermitted work where a permit is required is a big red flag. I recommend you find a more reputable contractor.

What if my remodeling project is very small? Do I even need a permit?

Check with your local building or permitting department. Often, they make exceptions for very small projects. Keep in mind that even if you do not need a building permit for your small renovation project, you may still need an electrical, plumbing, or other permit. There are usually exceptions and subtleties to the rules, so it's always a good idea to give your local building department a call to make sure you're correct in your understanding that you don't need a permit.

What if I am selling my home that had unpermitted remodeling work?

When you list your home, your agent will ask you to fill out a disclosure form. Answer the questions honestly. If you don't, you risk sabotaging any potential deal and opening yourself up to civil lawsuits later on. If you did any remodeling work without a permit, state that on the form. If previous owners did any such work that you know about, state it on the form. If you honestly don't know if past work was performed with a permit or not, answer, "Don't know." Confirm with your real estate agent or attorney, but in many cases, you are not required to go sleuthing around for past permitting violations that you don't already know about. The buyer's home inspector or bank appraiser will likely find these and report them to the buyer.

Podcast Ep 106: What Happens if You Get Caught Remodeling without a Permit?

remodeling project plans and a tiny house

Lead times for major building permits like STFI and full review in the city of Seattle can be excruciatingly long.

On one hand, this long waiting period can make homeowners shy away from the remodeling process altogether on the other hand, many homeowners may decide to forgo the permitting process. This results in unpermitted work that comes with a variety of consequences for the homeowner, a possible renter, and even the next person to own that same home.

Many families end up buying a home with unpermitted work and don't even know till they start dealing with the consequences. To find out more about why permitting is so important and what to look out for when buying a new home listen to our podcast episode "What happens if you get caught remodeling without a permit. With Dave Callahan."

Permits exist for a reason: Safety

Before I mention the consequences you could face by not getting a permit, let me explain why permits exist. They are there for a reason: safety.

We dive a little more in-depth on this topic in the podcast episode but make things short and sweet: the city-approved plans and the inspector that is sent out during construction will help ensure that your project contractor is following the proper plans and not leaving you with unsafe living conditions.

The residential building codes put in place by the city are there for a reason. Everything has been meticulously calculated, from stair tread length and width to the amount of fresh air that is brought into your home. While in the comfort of your home, you shouldn't be risking a painful fall down the stairs or feeling cold in the middle of winter with the heat on.

Imagine if we had no building permits and inspections

Permits can sometimes seem like a nuisance. They are an added expense, and applying for permits can sometimes be a long process.

I get it. You want to save money and get started on your project right away. However, imagine what construction would look like if we didn't have the safeguards of design review, permitting, and inspections in place, or if building codes weren't enforced.

You can see the results in the news, when a place with lax permitting and design-review standards suffers an earthquake or a fire. Buildings constructed of substandard concrete crumble to the ground, and innocent people are trapped in buildings without proper fire escapes.

Consequences of building without permits

Even though the permitting process can sometimes seem like a nuisance, it's there to protect us all. But maybe you think that your own risk is low and that you're going to just trust your handyman who says he can do the work without permits. If you decide to do unpermitted work, be aware of the following potential consequences.

Safety
Resale value
Complications getting a loan
Insurance
City penalties
Wasted time

So what do you do?

I hope it's clear by now what a bad idea it is to remodel your home without a permit. Here are some additional thoughts on how to proceed if you find yourself facing permitting dilemmas. If you're curious about the details surrounding the above-mentioned consequences then don't hesitate to listen to the podcast episode where we break down each example.

Here are a few more topics we cover in this episode -

What to do if you are in the process of buying a home and find out it had unpermitted work?
What if you buy a home and find out years later that it had unpermitted renovation work?
What if my general contractor/handyman/plumber/electrician says I don't need a permit to remodel?
What if my remodeling project is very small? Do I even need a permit?
What if I am selling my home that had unpermitted remodeling work?

If you prefer reading over listening you can read more about this topic and the answers to the consequences listed above in a past blog we wrote - Why you shouldn't remodel without a permit

Are you ready to remodel the right way?

Looking to renovate? Hire a reputable company that follows the law and protects the safety of your family (and your investment in your home). At CRD, we have dedicated ourselves to remodeling Seattle homes for more than 40 years. If you are ready to change your house for the better, contact us for a consultation. We are always happy to try to help.

Article Categories: Remodeling

Podcast Ep 106: What Happens if You Get Caught Remodeling without a Permit?

Permits exist for a reason: Safety

Imagine if we had no building permits and inspections

Consequences of building without permits

So what do you do?

Are you ready to remodel the right way?

Guide to Hiring a Remodeler

Looking for Inspiration?

Company

Work and Services

Resources

Seattle Areas We Serve

Podcast Ep 106: What Happens if You Get Caught Remodeling without a Permit?

Permits exist for a reason: Safety

Imagine if we had no building permits and inspections

Consequences of building without permits

So what do you do?

Are you ready to remodel the right way?

Guide to Hiring a Remodeler

Related Articles

Looking for Inspiration?

Company

Work and Services

Resources

Seattle Areas We Serve