buying a house with non permitted upgrade

[greendeal]

What is the name of your state? California

I'm a first time home buyer in Southern California. I want to know what are the consequences of buying a house which has some upgrade done without permit.

I come across plenty of listings with houses which has one extra bedroom, bathroom, den, ...etc without permit all are sold in "as-is" condition. My buyer agent has told me that the only consequence is that the appraiser will not take into account that addition, other than that I'm free to live in the house. Is that really true? I'm afraid that after buying such a house I'll have to pay a fine to the city and be forced to restore the house to the permitted specifications.

 

[BradleyS]

Opinion from RE Broker in Kansas:

1. Make sure you have a real estate professional or attorney working for YOU.
2. Make sure you have a professional inspection done....even if house is selling "AS IS"
3. Check the contingency clause for inspection results......."Can I get out of this contract if this house was built over a 12" Gas line????"
4. Check the title work for encroachments/setbacks/boundary disputes.
5. Have a survey completed.
6. A bunch more.............

If you are a first time buyer, don't try to do this yourself. You need help!

 

[Bigfoot]

At some point a city worker may notice the 'upgrade' was performed without the necessary permits. Then, you will have the option of bringing the addition (upgrade) up to code, or you'll be required to demolish it.

This could present quite a problem when you're ready to 'sell', or it any electrical work associated with the work causes a major problem that your insurance company chooses to not cover.

Before you purchase such a property, insure that the Seller becomes responsible for fixing the problem before you take possession.

 

[momRN]

As a licensed CA real estate agent I can offer you this advice:
Please get all inspections. Standard contracts show a 17 day time frame for your inspections. Try to get more time if you can. Make sure you have a licensed contractor (not necessarily a home inspector- but that is good too) who is experienced in remodels WITH permits check out the addition to see it is up to code. anything that is not up to code, I would recommend asking the seller to correct.

 

[clueless55]

Won't upgrades also increase assessment value and taxes?

 

[HomeGuru]

What is the name of your state? California

I'm a first time home buyer in Southern California. I want to know what are the consequences of buying a house which has some upgrade done without permit.

I come across plenty of listings with houses which has one extra bedroom, bathroom, den, ...etc without permit all are sold in "as-is" condition. My buyer agent has told me that the only consequence is that the appraiser will not take into account that addition, other than that I'm free to live in the house. Is that really true? I'm afraid that after buying such a house I'll have to pay a fine to the city and be forced to restore the house to the permitted specifications.

**A: you want to know the truth? Call the building department and ask them.
And remember to ask the worse case scenario ie. having to tear down the non-permited improvement.