An interesting thing happened yesterday that could have prevented a buyer from getting financing for the home he was buying. The appraiser came to set a value on the home. No problem there, it came in at just the amount that the seller and buyer had agreed to.

However, the appraiser noted that a screened porch had been enclosed and was now living space with windows, electrical outlets, and an air-conditioning/heating vent. Upon seeing this, the lender wanted proof that this remodelling had been done legally with the proper building permits. If not, they would not lend the money for the purchase.

This is just what the buyer and I needed to hear after he had invested time and money in the termite inspection, the professional home inspection, the survey, and the appraisal. After spending over $1,000 now it was possible that he had invested these funds in a property that he could no longer buy.

So at 8 PM last night I was at the office working my way into the Pasco County Building Department's website. Luckily, when I pulled up the information for this home, there was a permit issued in 1994 for "enclosing a screened porch and installing electrical service to that space". Whoop-di-doo! That was all the lender needed to see and now it appears that we will be closing on the sale next week. If it had turned out that the former seller had done the work without a permit the buyer would have lost the fees he had paid, and the seller would have to disclose this problem to any future buyers.

All worked out well for this buyer and seller. But we all know that there are many remodelling jobs, room additions, new bathrooms, garage conversions, new utility sheds, etc that have been built without benefit of the proper building permits from the county or city. For example, several years ago my parents converted their garage into a family room without a permit. What will happen if they go to sell it? If the buyer pays cash, probably nothing as long as it is disclosed. But that is not very likely. The buyer will probably want to get a mortgage. When the appraiser comes, he or she will readily see that the garage is no longer a garage. If that is noted on the appraisal and the lender wants to see proof of permits, my parents are going to have a big problem! They could try to get inspections done after the fact, but how is the building inspector going to examine the electrical work? Rip down the wallboards? By the way, someone from the county must have driven by and noticed that the garage door was no longer there. Now they have it classified as an "Enclosed Porch"?? Where they got that from is a mystery to me.

If you are thinking of doing any work on your home that requires a permit, you may want to think one, two, three times before doing it without getting the required permits. You may get away with it now, but when you go to sell your home down the road,  there could be a nasty surprise awaiting you, the buyers, and your real estate agent. So if you want to be sure, check with your county or city zoning department and avoid problems in the future. Keep in mind that requirements will vary from municipality to municipality.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

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