Buying a home without of permit for remodeling comes with a lot of risks. Searching for a home to buy can be an exciting undertaking, but there are numbers of factors to consider before purchasing a house. You should find out if the house has a permit for remodeling and if the home you are about to buy has had improvements, you need to know whether those improvements were permitted.
Most times, homeowners end up with unpermitted renovations to save time and money. Your county building inspector has to ensure that all homes comply with the existing laws that pertain to home remodeling. They also have the authority to enforce the rules. What happens if you are buying a house without a remodeling permit? Here are some risks involved:
You will not be aware of renovations
One of the dangers of buying a property without a remodeling permit is that the buyer will not know about the past improvements that have been done. There are disparities in state laws when it comes to the amount of information a seller must disclose to the buyer. It is always better if a seller can still provide a buyer with all the necessary documentation.
The Buyer will be responsible for fixing the problem
If the code enforcement department in your locality discovers that you the buyer is working on remodeling without a permit, you are regarded as the current occupant of the home and will be responsible for the payments of penalties and licenses. This applies even if the occupant has just purchased the house and knew nothing about it. To fix the issue, you might be required to make minor changes or tear down some parts and rebuild. You might also be ordered to remove all the unpermitted remodeling.
You may be asked to pay back taxes
Owing some taxes is another risk associated with buying a house without renovation permit. If the taxing authority in your locality discover that remodeling took place without permission, the present occupant may be liable for paying back taxes due to the increased value of the home. Apart from paying back taxes, it could also attract penalties and interests which would cost you more than you initially planned for.
If the remodeling work is done without a permit, it may not be covered by your insurance.
In most cases, unpermitted remodeling is not covered by insurance. Therefore, if anything happens to any unpermitted addition in the home, the claim will be denied by your insurance company which could set you back thousands of dollars in the future.
Make sure to speak with your real estate agent to confirm that you have all the necessary rights to remodel your new home to your taste without penalties.
About the Author
Robin Anderson Real Estate
“My Passion is people and relationships and I promise to provide my clients with exceptional service tailored to their individual needs.” -Robin Anderson
Georgia native, Robin Anderson brings her passion for people and her love of homes to work for her clients. She and her husband, Andy, have been married for over 30 years and have two adult children, Ellen and Drew. They currently live in Fulton County, but Robin has lived and invested in properties throughout metro Atlanta as well as helped clients buy and sell. She has been integral to many real estate endeavors including designing and building several custom homes, remodeling homes, subdividing land, managing rental properties, and buying and selling properties. She spent her first 3 years in real estate working with a new home builder, and she has spent the last 6 years working with buyers and sellers in her own community. Robin is highly motivated but sensitive to the fact that buying and selling homes can be an emotional experience, so she makes it a priority to keep clients closely informed throughout the process and strives to produce quick results. She appreciates the opportunity to help her clients navigate the real estate process, and she aspires to deliver quality customer service that is both informative and positive. She is driven to provide outstanding service for her clients and she is focused on building successful and lasting relationships with her clients. This personalized service earns her enthusiastic referrals from clients she is pleased to call friends.Edit
