Are you Buying a House Without Permits for Remodeling?

by Valerie Pineo 04/14/2019

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
Author

Valerie Pineo

For The Best Real Estate Results #PickPineo I deliver the premier Real Estate service you expect and deserve! As your trusted professional, my expertise, experience, strong work ethic and accessibility means all your Real Estate needs and goals will be handled with care and professionalism. You can expect personalized service that is tailored to your individual needs. Selecting me as your Realtor, assures you, I will be your point of contact from the beginning of the process through settlement and beyond. Your Realtor for life! I appreciate and look forward to the opportunity to work with you and for you. No matter where you are moving; Buying or Selling, I can assist you, your family and friends worldwide, we're in 98 countries. Before your next Real Estate move please contact me for a free consultation and up-to-date inside track on our local market. As a dedicated real estate agent, I am qualified to guide you in buying or selling a home. Enthusiasm, knowledge of the area and personal concern for the clients interests combine to make me an outstanding resource for your real estate transaction. I work extensively to help Buyers and Sellers meet their real estate goals. Buying or selling a home is one of the most important transactions in the lives of many people. Because of that, it is important that you work with someone you trust and feel is a market expert with integrity. I measure my success through the satisfaction of my clients. I know that your success is my success. I offer local expertise in a home market tailored to meet your needs. As a real estate professional, I know the neighborhoods, schools, market conditions, zoning regulations and local economy. I will keep you up-to-date with new listings and conditions as they impact the market. I will make the process as pleasurable and stress-free an experience for you as I can. I will provide sound and trustworthy advice to help you achieve your real estate goals. Let me guide you through the buying or selling of your home. I look forward to working with you.