As a post-script to my earlier blog entry about the potential risks of buying homes with non-permitted or non-complying construction additions or improvements.
Most real estate contracts provide the Buyer a right to investigate the condition of the property as part of the Buyer's due diligence process. This is a contractual right that is ignored at the Buyer's peril. The Buyer has the right to seek an examination and analysis of the property's building permit file which may indicate whether structural modifications or other constrcution features were done without properly issued by building permits including final written inspection approval by the building department or agency.
Permit documentation varies between cities and counties, and the documentation is often subject to interpretation. Prudent home buyers should engage a construction professional for proper examination and analysis of the file. In San Mateo County (CA), for example, some permit files may be incomplete, illegaible, incorrect or missing so the true permit history or status may never be fully ascertainable for certain.
Buyers should not rely on real estate brokers or agents to examine or interpret the building permit file.
REO and "short sale" buyers should be particularly careful. A little bit of research could give you peace of mind and save your thousands of dollars.
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