Home I’m buying is being repaired by seller, but no permits have been pulled, I’ve learned. Now what.
By
on
November 24th, 2009
I’m in the process of buying a house as a 1st time buyer. I have a closing date and I can’t run away at this point. I’ve only recently learned about permits and building code inspections.
The house I’m buying has had the home inspection done and the seller has agreed to make necessary repairs. Repairs are currently underway, but I found out at town hall that no permits have recently been pulled. A new outside deck had been added to the house, kitchen remodeling has been done w/o walls being changed and new flooring is now being installed. Floor joists are being reinforced and temporary 2 X 4 supports are being replaced with permanent columns in the basement. My realtor/agent had not put in the repair agreement that permits be pulled from city hall and inspections performed. I hadn’t known any better till now. Is there anything I can do now to protect myself now that I’m already in the process of buying the home. I’ve thought of calling city hall myself to report this. but I know this could really cause trouble. What do you suggest.
I was thinking of anonymously calling city hall. I don’t know what to do. please help.
chatsplas says:
Request city inspection before agreeing on closing. Do it NOW. Get city to inspect (and fine or not and issue permits or not) and to issue occupancy permit. You can also have your inspector come back to reinspect. Seller needs to pay the permits and fines assessed, if any.
Doesn’t matter whether it is in contract or not, because most work requires pulling permit by local ordinance. Some can be done without, by owner himself, but sounds like some major stuff involved. Your realtor should have required work be done by licensed contractor or permitting process.
November 24th, 2009 at 11:33 pm
cmcav@yahoo.com says:
The seller is trying to avoid paying the permit fees so is doing the repairs by sneaking them in. You need to have an inspection done to protect your investment. Don’t trust this guy.
November 25th, 2009 at 12:11 am
Othniel says:
You are within your rights to insist that all repairs be according to code and you need to be willing to walk away from this purchase if the owner does not comply. If your real estate agent is not doing his job then go to city code enforcement and complain to them. They will shut everything down until the permits are pulled and the work passes inspections. The lender will not fund the purchase until this is done.
Some things in life are unpleasant but something like this is very important. Think about when you want to sell that property after buying it and the new buyer finding out that all of the work done on the house is not up to code. Do what I suggest and take the flak.
November 25th, 2009 at 12:52 am
Robert B says:
Well, hopefully your Realtor was smart enough to write the addendum to say that you will re-inspect the home after the repairs have been finished retaining the right of refusal. All Realators should write repair addendums this way but not all do. Anyway, if he did, then once the seller says all the repairs are complete, walk through and check everything out and ask to see the permits. If they can’t produce any then you have the right to reject the repairs as incomplete/inadequate and re-negotiate and move the closing date. Talk to your Realator and see if he/she can talk to the seller’s Realator about it and let them know that you will reject the repairs if they were not permitted so they have some warning and have the opportunity to take care of that ahead of time. Also, make sure you find out what repairs would require permits before you make a stink about it. Or take a builder with you that knows. It would be a mistake to demand permits when they are not required in your jurisdiction for the types of repairs being done. If your Realator did not write the addendum to specifically preserve the right of refusal, you can still try to reject the repairs as incomplete, but it would be a tougher legal position.
November 25th, 2009 at 1:49 am
dusty_titus says:
Who paid for the inspection to qualify the house for resale (getting a new mortgage.) During the inspection certain items were found to be in need of repair/replacement - none of the items you mentioned require “pulling a permit” Permits are required for “new electrical wiring or panels” - New Water heater, New septic system, New roof, New Furnace or A/C installation, New driveway approach, New Garage Floor & Driveway, Copper re piping. Banks will not re fi without proper permits. All the work being done now comes under the heading of “rehabbing” in order to push the price of the house up from the bottom where it suffered from “delayed and deferred maintenance” Call the bank and check your loan first, explain that you want an independent contractor to check this work, that an unlicensed contractor (as far as you know) is doing. You’re paying for it, and if its inadequate you’ll have to have it redone, without recourse to your mortgage contract.
November 25th, 2009 at 2:45 am
Big Deal Maker says:
First of all to do repairs you do not need a permit.
Only when you change the homes structure would you need to pull permits. Or to change a water heater, weird yep. But city hall wants every dime they can get. So remember you ask about permits today what happens when you want to change a light bulb.
November 25th, 2009 at 3:41 am