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Should realtors "pull" a permit? Why is the permit history important?

By
Real Estate Agent with Alain Pinel BRE 01367196

contractor"Pull a permit" is oft used in the wrong context. Realtors get copies of the permit history. We don't "pull" the permit. Or at least, we shouldn't.

Homeowners and contractors pull -- or request/apply for a permit.

When working with a buyer or seller, realtors are likely to check the permit history of the property for different reasons. As a listing agent, if I publish the permit history, it's to prove that certain work was done. Nonetheless, I still urge the other party to do their own due diligence and delve as deeply as they wish as part of their own investigation.

As a buyer's agent -- If I write an offer on the property, I ask for proof of permitted work. I urge the buyer to do his own investigation which may or may not involve getting a copy of the permit history.

 

Some scenarios that I have personally encountered when I looked at the permit history

  • New roof was installed, but permit wasn't finaled. Fortunately, the roofing contractor's contact information was on the actual permit. And even better, he was still in business. So I contacted the roofer and told him that although he pulled the permit, the permit history doesn't show the work as having been inspected much less approved.  The roofer, in the interest of maintaining good business relations (maybe even a referral) personally took care of going back to the city, arranged for an inspector to check the work, and had it finaled/approved. Thus, we could honestly claim on the MLS listing that the roof was replaced on a certain date.
  • Rooms, square footage don't match what is on the public records. On public records, the house had 2 bedrooms/1 bath, and approximately 1000 sq ft. But when I visited the owners, the house had 3 bedrooms/2 baths and double the square footage. So although the work was done with permits, it wasn't reflected on the public records. The owners mistakenly thought that because it was permitted, records would automatically change as well. Not so. The owners were advised to go to County records, while armed with their documentation (floor plans, permits). The city sent an inspector to physically measure the place, and then submitted the change for public records to reflect that actual configuration.
  • Seller claimed that sewer lateral was done. But after looking at the permit history, we didn't find a record of the work --- not even a permit. Since it is a local ordinance to have the sewer lateral certified, this became a negotiation tool.
  • Property was bought as a triplex. But public records show it as a duplex. The buyer's concern was that he couldn't get the loan for a triplex. The 3-R report was inconclusive because the permit history was unclear on whether the permitted addition of a bathroom in the basement was actually supposed to be the addition of a unit. To protect the seller, the post was changed to duplex. Both sides agreed to a price reduction.


Some cities may have been lax, or didn't keep good records of permits. But today, woe to the property owner who doesn't get permits for work done. If there are no permits, the owners should attempt to resolve the discrepancy. Because it can be a huge factor later.

Articles online:

See Realtor Magazine article on "Remodeling? Don't Forget the Permit."

AND...from Wall Street Journal, see "Avoiding the Pitfalls of Remodeling Permits".

"Whoever pulls the permit is responsible for the work being done correctly. While it is legal for you and unpaid helpers to take out a permit to work on your own property, if you tangle up the wiring or install the sink so it is off kilter, fixing the problem so it will pass inspections is on you.

If you sign the permit, you also become responsible for any mistakes, substandard materials, shoddy workmanship, bad engineering or other problems with the project's design and construction. Worse, if a worker is injured or does damage to someone else's property, you could be held liable as well."

 

Comments(5)

Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Pacita:

Sellers often forget to check to see if the permit history reflects recent work.  Even if they have a hard card that the work was finalized, mistakes happen at the permit department.

May 03, 2013 08:49 AM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

Great information to share.  Not only is this a topic during buying and selling, but if the buyer's agent is not as judicious as you are, than it can come to light during the property management "phase" of the cycle if the buyer was an investor.  We have seen this ourselves and had to cancel contracts since we couldn't be responsible for placing renters in homes with unpermitted electrical or structural work that was too extensive for a "quick inspection" to remedy.

May 05, 2013 02:14 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Evelyn --- this is a case when ignorance isn't always bliss. Homeowners naturally assume that their contractors do what they're supposed to do, inlcuding pulling permits and getting inspections completed.

Mark --- some people will make all kinds of assumptions, or turn a blind eye to what should be done. But when they're in a hurry, they will rationalize not doing the right thing

May 05, 2013 04:21 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

It sure does help to go ahead and pull the permit history in the beginning instead of getting that unpleasant surprise later.  

May 06, 2013 12:55 PM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Judi --- now that this is becoming such a hot button, it pays to be knowledgeable and up front. If they don't know, we encourage them to find out.

May 06, 2013 03:10 PM