Unpermitted Additions
August 11, 2010
You would think that by now the issue of unpermitted additions would be a thing of the past. Since the mid 1980s (and maybe even prior), in the State of California we have had disclosure regulations that require disclosure of additions made without permits. (Actually we now need to disclose almost any work done on a property that was done without the required permits.) With the knowledge that unpermitted work would have to be disclosed when a property was being sold, you might believe that homeowners would be conscientious about obtaining the necessary permits. However, unpermitted additions are still being done. Perhaps a homeowner wants to save the expense of taking out required permits. Perhaps the homeowner does not realize that a permit is required. Perhaps the homeowner is aware that additions of square feet of living area can trigger a reassessment of the property and results in higher property taxes. Whatever motivated the homeowner to by pass the permit process, when a property is sold, it becomes necessary to disclose the unpermitted work.
There are other possible steps a potential seller might take. One would be to apply for an "after-built" permit. There may be penalties, but if the work was done to current codes, an "after-built" permit may be issued. Disclosing the lack of a permit to a potential buyer is a common way of dealing with the unpermitted situation. If a buyer is willing to accept the property "as-is", it can be sold without the permits being obtained. The catch-22 in this acceptance by a buyer is that a lender may require that the work be permitted in order for the buyer to obtain financing.
If a homeowner is contemplating an addition to the property, checking with the city about permits and doing the work with permits is always the best way to avoid future problems.
You would think that by now the issue of unpermitted additions would be a thing of the past. Since the mid 1980s (and maybe even prior), in the State of California we have had disclosure regulations that require disclosure of additions made without permits. (Actually we now need to disclose almost any work done on a property that was done without the required permits.) With the knowledge that unpermitted work would have to be disclosed when a property was being sold, you might believe that homeowners would be conscientious about obtaining the necessary permits. However, unpermitted additions are still being done. Perhaps a homeowner wants to save the expense of taking out required permits. Perhaps the homeowner does not realize that a permit is required. Perhaps the homeowner is aware that additions of square feet of living area can trigger a reassessment of the property and results in higher property taxes. Whatever motivated the homeowner to by pass the permit process, when a property is sold, it becomes necessary to disclose the unpermitted work.
There are other possible steps a potential seller might take. One would be to apply for an "after-built" permit. There may be penalties, but if the work was done to current codes, an "after-built" permit may be issued. Disclosing the lack of a permit to a potential buyer is a common way of dealing with the unpermitted situation. If a buyer is willing to accept the property "as-is", it can be sold without the permits being obtained. The catch-22 in this acceptance by a buyer is that a lender may require that the work be permitted in order for the buyer to obtain financing.
If a homeowner is contemplating an addition to the property, checking with the city about permits and doing the work with permits is always the best way to avoid future problems.
posted by shirley harry at 8:51 AM
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