If you’re thinking of selling and are reading this then call me. Hire a broker who know how to handle it and get youu the most for your house and keeps you from being sued by an unhappy Buyer. Chris 561.818.3858
A building permit is required for all kinds of home improvements from replacing an AC or a water heater to replacing doors and windows with say impact rated ones. If a kitchen or a bathroom was remodeled and ANY of the plumbing or electric was moved, then they should have pulled a permit. If a wall was removed or added, it would have required a permit. Start by walking around the house and asking the basic question: Was this here when the house was originally built? If not, would it require a permit to do it?
Also, keep in mind that many communities (HOA’s and Condo’s) require an approval of any work done. Is this applicable and if so, did they ask the association for permission?
Non-permitted work can be a MAJOR problem in any real estate sale. Some agents/agencies now have some sort of “special” clause written into the Contract requiring the Seller to close any open permits which is a good idea but often poorly worded.
If you are the Seller and have done, or discover, unpermitted work, it’s important to know how it affects the home’s value and what you MIGHT do to fix the problem. Work done without a permit SHOULD be disclosed to a potential Buyer. It should be on the Property Disclosure, if the Seller completed this form and they had knowledge of it, but also note the language of the base Far/Bar As-Is contract:
SELLER DISCLOSURE: Seller knows of no facts materially affecting the value of the Real Property which are not readily observable and which have not been disclosed to Buyer. Except as provided for in the preceding sentence, Seller extends and intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property. Except as otherwise disclosed in writing Seller has received no written or verbal notice from any governmental entity or agency as to a currently uncorrected building, environmental or safety code violation.
Why Are Permits Necessary?
Permits allow for the building official to inspect construction and make sure that the work is done to code. That it’s safe not only for the person doing the work but for anyone who buys the house. Without a permit, there is no way to know that work done on a house was done to code and is safe.
How Is Unpermitted Work Discovered?
Unpermitted work is discovered, typically, by a Buyer at inspection OR for open or expired permits when, and typically MUCH later, a “municipal lien search” is ordered by the title agent. The inspector can see that the house was built in 1975 but has all newer hurricane rated windows and doors or a brand new AC. They look into it with the building department and find out there’s no permit. OR, that the then owner pulled a permit but never properly closed it. Closing this can be a big problem if say the work was not done according to code, OR if the work does not conform to the code TODAY. There’s a risk.
Let’s say the new owner pulls a permit for say an AC replacement a few years later and when the building inspector shows up they “notice” that the house has had other work done without a permit. Now usually they only care about things like electric and pool barriers, so called “life safety” issues but it voul be anything. They go back to the office, lok into it and see no permit. Then they get code enforcement to open a case and force you, the new Owner, to pull a permit or complete and close an historic one. Note that open permits are typically NOT consider a title defect and thus the Seller CAN force the sale to close absent any other language inserted into the Contract.
Can Unpermitted Work Impact Your Home’s Value?
Again, any unpermitted work known to the Seller must be disclosed at the time of the sale, and, yes, it can impact your home’s value. Once a Seller discloses it then it’s up to the Buyer to determine if they willa ccept this as part of the As-Is condition. AC and water heater swap outs get done all the time without a permit. There’s a risk that the Buyer is assuming on purchase that code enforcement will make them pull a permit for the work AND THAT WORK MUST CONFORM TO THE CURRENT, YES CURRENT, BUILDING CODE.
What are the options to “fix” unpermitted work the Seller has knowledge of?
Option 1 – Do nothing. Disclose it, and FULLY, to the Buyer and let them either accept it or not. Again, the down side is what if the work is not ‘permittable’? Meaning it’s not allowed under the current zoning or building code. Or what if the windows and doors they used are no longer approved for use in Florida? What if they never were? Can you prove the window make and model and provide the required approvals?
Option 2: Get a Permit
If (IF) the work is permittable then this is what I suggest. Yes, it’s a pain but then you’ll know the work is safe and you won;t have to worry about it when you sell. One can pull and owner-builder permit, or hire a contractor, apply for a permit, have the inspections, make any required changes and deal with it. What I do suggest though is to have a contractor, AC tech or plumber look at what’s there first. If it will not pass inspections with a minimal amount of effort then you may want to just let it be and disclose it. Particularly if say the AC that was installed without a permit is at the end of its life.
Option 3: Remove the Unpermitted Work
One can always remove the work that was done without a permit but boy does that stink and you probably need a permit to revert it anyway.
If your home has unpermitted construction and you’d like to sell, the first step to take is to hire an experienced real estate broker to guide you in preparing the house for sale. I’ve been the Broker at R&R for 20 years now. I have people, contractors, who will come out and look at what was done and make a reccomendation.
