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NO PERMITS? NO DEAL! BELIEVE IT!

By Pacita Dimacali

Real Estate Agent with Alain Pinel BRE 01367196

July 31, 2009 04:46 AM

Yes. Not having permits is a deal-breaker. Believe it!

It happens again and again. We find a lovely home. Client loves it. We write an offer. We look into the remodeling, expansion, improvements.

Then we discover the work was done without permits.

"But they were done by professionals." Uh-huh. If they were professionals, they would have known to get permits, and then to have them finaled by the inspector.

"But they just changed appliances and the counter top." Uh-huh. Are the appliances EXACTLY the same? Were new electrical outlets and wiring required?

"The seller doesn't want to get the permits. The sale is AS IS." Then it's bye-bye. Let's move on.

This just happened to me. My buyer loved LOVED the house. Made an offer on the spot. We got the disclosures, and lo and behold, we find out that many of the improvements were done without permits. Although they pulled a permit to re-roof, that permit expired, and was not re-issued, much less finaled.

When I talked to the seller's agent, she said that the seller prefers to sell as is, and would rather not go back and get permits issued and have inspectors approve them.

Sadly, we have to withdraw.

Not having permits is a deal-breaker. Believe it!

Alameda Electrical Requirements for Kitchen Permits

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Tom Boos

Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI

Providing the very best of service to Sellers and

Some people think that if permits are pulled it will alert the tax assessor and possibly raise their taxes. This is generally not the case at all unless square-footage is being added or a major renovation is taking place. It is ALWAYS wise to have a permit for any work completed by a "professional" contractor.

Jul 31, 2009 04:55 AM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Tom --- true.

As people get smart about the problems with unpermitted work, like when the city finds out and forces the current owner (even if they're not the original culprit) to either tear it down, pay fines, and/or re-do the work.....this becomes a serious problem. And when buyers back out of escrows, or they bypass a property because of unpermitted work, sellers will have to take note.

So we must keep educating property owners...get a permit!

Thanks.

Jul 31, 2009 05:46 AM

Wanda Kubat-Nerdin - Wanda Can!

Red Rock Real Estate (435) 632-9374 - St. George, UT

St. George Utah Area Residential Sales Agent

Pacita, There always seem to be issues that revolve around the "AS IS" status of a home. Your buyers are smart in moving on! (p.s. And they are lucky to have you as their agent too!)

Jul 31, 2009 08:19 AM

Antonio M. Cardenas Broker Associate

RE eBroker Group - San Leandro, CA. - San Leandro, CA

"The Realtors In Motion"

Other excuses we have seen are: "... it was done by the previous owner" or "... this is the way we bought it" the fact is, if it is YOUR house, YOU are responsible. Permits are required for a very important reason: THEY WILL SAVE YOUR LIFE! If the structure is not built properly it could fall, if the electrical is not grounded properly, it will catch on fire, if the plumbing is not connected properly it will backup or worse will break and flood. There are huge liabilities involved, I agree with you Pacita, I'll rather lose the sale and save my client than try and buy a can or worms...

Antonio

Aug 01, 2009 11:08 AM

Wanda --- that's the risk we take in writing offers on REOs. On a couple of escrows, my client spent the money on inspections and found so many problems. Even though some of the work had permits, nonetheless, the permits didn't identify hazardous conditions. So my clients walked away, too.

Antonio --- you bring up the best reasons for making sure the work is done properly. I had a serious situation on a duplex. During the inspection, we discovered that someone had improperly worked on the furnace, and it was not venting properly. In other words, carbon monoxide could have been seeping into the unit. We had that taken care of right away with a licensed HVAC specialist. Permits and inspections are so important.

Aug 01, 2009 12:05 PM

Tom Huntley Renovation Lender

Santa Rosa, CA

Tom Huntley

Happy to fix any permitting problems with renovation financing. Grab the free equity for your clients.

May 03, 2013 01:42 AM

NO PERMITS? NO DEAL! BELIEVE IT!

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