Bought a house but permits were not given for prior work done.?

Question

My fiance and I bought a house. There had been some previous work done to the living room and part of the garage was converted into a laundry room. When we bought it we were told that everything was permitted and that we would be given copies of the permits. The old owners, who were also the real estate agents selling the house, now claim that the only work they had done was to the living room and the the garage was done before they lived there. They want to have the living room work permitted by an engineer after the fact. They also claim there is no permit for the work done in the garage, even though they originally said there was one.

What can be done about this?

Answer 1

That is why you have title insurance.

Answer 2

You will have to find the answer to your question at your city office for building permits. We owned a home in CA that had part of the garage made into a laundry room before we bought it. They disclosed this and we were ok with it. The only problem was when we sold it we had to disclose it to the new buyers. That was No.Calif. In So. Calif we lived in a city that did not allow any building without permits. If that is the case where you live now, you have to tear it down or possible you can have it inspected and if it passes inspection you can get a retro-permit. Call your city building inspector.

Answer 3

Well, this could be serious because code enforcement can require the destruction of any improvement on a home that was done without a permit. And when they don't do that, the fines are stiff. What kind of deed did you get? Any deed other than a "Quitclaim" deed has certain warranties allowing the new owner to hold liable the old owner for defects to title and value of the home for things just like this. The agents are well aware of this and are likely just as anxious to cover their bottoms as you are. So let them get you the permits they can get and have them put in writing anything else. If you plan on doing any future improvements, you can always "include" a former improvement in the scope of the new work so that then you would have a recorded permit for it. Good luck, this could get messy if the worse happens.

Answer 4

Can you PROVE that they told you the garage work was done under a permit?
If you can, they have violated Real Estate laws of ethics and can be sued.
If it's just their word against yours, your position is not as strong.
You can demand to see receipts for the work done on garage and living room etc.
Next time you buy a house, hire a Licensed Home Inspector. They charge a fee but will usually get the selling price reduced by pointing out defects and things such as missing permits.

Answer 5

Where I live (NY) - you do not need a permit to make a laundry room in the garage. You do not say what was done in the living room - but most likely you do not need a permit for that either.
Go check with the local town hall to be sure.

Answer 6

I think it will be your word against theirs, so your in a tough bind.
To begin, you should always hire an home inspector who will give you a detailed report of any defects, damage and things which he believes are out of code or were done without permits.

The owners/sellers have a right to disclose any damage, defects, or work done to the property, but have no obligation to provide you with verification of permits. If they did disclose that there were items done with or without permits, it should have been in writing. Again, look at your contract, it will tell you over and over to send the appropriate inspector.

I personally think you might not have recourse because it was your duty to research the permits with the city or county, and after your findings cancel or proceed with the purchase. Sorry but thats what I think, in respect to California Purchase Agreements, however the law might be different where you reside.

Answer 7

I would speak to the permit company about it and see if you can get it approved or what needs to be done in order to get it legal. Any costs should be the responsibility of the former owners for not divulging the truth, in the first place (they are agents, they should know better).
If you have house insurance make sure it's all legal (permits and inspection), if you don't get it legal, usually your not covered, if you ever have a fire.

Answer 8

Speak to your local code office. They will have building inspectors on staff who may come out and survey the work done and let you know what legalities need to be followed. I highly doubt that you will have to face financial consequences (i.e. getting new permits) for work that was already done when you bought the house.