A Question of Permits
December 12, 2007
In the selling of real estate since the mid 1980s, the question of whether additions were done with permits has become increasingly vital to the overall marketability of a property. Back in the old days 1950s through the 1970s, "do-it-yourself" was a popular way for homeowners to make improvements to their properties. In California in approximately the mid 1980s, we began asking sellers if their additions had been done with permits. A written statement was then furnished to the buyer as a disclosure. California state law made disclosure a mandatory part of every real estate transaction of residential 1-4 unit properties.
Buyers then could request that a seller obtain an "as-built" permit from the building and safety department of the municipality in which the home was located. Some cities charged penalties, but usually the basic permit cost was doubled. Should a seller not wish to become involved with a the process of obtaining a permit, the buyer then had a decision to make regarding continuation of a purchase.
I have discovered that governments are becoming more and more stringent about the inspections and requirements of "as-built" additions.
Here are a few of the challenges:
The addition will need to be brought to current construction codes. This could require new wiring, new insulation and even fire sprinklers.
The addition will need to meet current set-back requirements.
The assessor is now evaluating whether to collect back assessments that would have occurred when the unpermitted addition was built.
All in all, getting permits when doing alterations and additions to a home is a wise and probably an important first step for any homeowner. The lack of permits can cause a loss of a sale and /or a decrease in the value of the property.
In the selling of real estate since the mid 1980s, the question of whether additions were done with permits has become increasingly vital to the overall marketability of a property. Back in the old days 1950s through the 1970s, "do-it-yourself" was a popular way for homeowners to make improvements to their properties. In California in approximately the mid 1980s, we began asking sellers if their additions had been done with permits. A written statement was then furnished to the buyer as a disclosure. California state law made disclosure a mandatory part of every real estate transaction of residential 1-4 unit properties.
Buyers then could request that a seller obtain an "as-built" permit from the building and safety department of the municipality in which the home was located. Some cities charged penalties, but usually the basic permit cost was doubled. Should a seller not wish to become involved with a the process of obtaining a permit, the buyer then had a decision to make regarding continuation of a purchase.
I have discovered that governments are becoming more and more stringent about the inspections and requirements of "as-built" additions.
Here are a few of the challenges:
The addition will need to be brought to current construction codes. This could require new wiring, new insulation and even fire sprinklers.
The addition will need to meet current set-back requirements.
The assessor is now evaluating whether to collect back assessments that would have occurred when the unpermitted addition was built.
All in all, getting permits when doing alterations and additions to a home is a wise and probably an important first step for any homeowner. The lack of permits can cause a loss of a sale and /or a decrease in the value of the property.
posted by shirley harry at 8:52 AM
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