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Selling Your House with Unpermitted Additions

by Dianne Drinkwater 06/13/2021

Image by Sue Smith from Shutterstock

House owners frequently remodel, upgrade, or otherwise make changes in their homes for which they do not secure a permit. While some changes do not require permitting, others do. The challenge comes when you attempt to sell the home. You may run into a problem when a buyer makes an offer on such a property, and their inspector discovers unpermitted changes. Their mortgage lender may be unwilling to give them a loan until you remedy the permit issue.

Additionally, since building codes often change from year to year and certainly from decade to decade, and the property may have changed hands more than once before it came to you. Even if the upgrade occurred before you purchased it, you might be the one responsible for fixing it with your municipality.

What can you do? When you believe your home has unpermitted construction, learn as much as you can about it:

  • When did installation take place? Before you took ownership of the house? After? 

  • What is the construction? A pergola? A sunroom? That necessary second bathroom?

  • In the year or era of construction, was a permit required? Is there a permit in place of which you're not aware?

  • Can it be grandfathered?

What is “Grandfathering”?

The term “grandfather clause” refers to an exception to a code, restriction, or legal requirement. It allows anything already done legally “at the time” to continue even if a new limitation would not allow it. Regarding unpermitted home upgrades, if the construction was before the change in the code, check to see if the code requires retroactive compliance. In that case, exceptions typically pose a danger to anyone living in the home or on the property and need remediation. When code changes do not require retroactive compliance, knowing the date of the construction puts you in the clear.

Retroactive Permitting

When you discover retrofits, additions, upgrades, or renovations in your home, search city or county records for a permit. Ask for help to see if that type of work in the year(s) of its completion required one. If it needed a permit, and you do not find one in place, either request a retroactive authorization or plan to sell your home "as is" to a willing buyer. Municipalities often have methods in place to offer retroactive permits. Check to determine the total cost of the permitting process. In addition to the permit fee, you may have to pay fines, inspections, and other fees. Any modifications required because of the permitting process become your responsibility. When the total cost of obtaining retroactive permits and related fees and construction costs is higher than the return on your investment, consider the “as is” process.

Selling Your Home "As Is"

When you choose to sell your property "as is," you no longer need to disclose to the municipal building department that you may have unpermitted construction. Until you are sure you want to request a retroactive permit, do not disclose information when you communicate with building code offices that might trigger an inspection. 

In the selling process, however, fully disclose to your real estate agent all items you know about for certain. That is, tell them about additions or upgrades you installed while in ownership. Make sure a sale is not delayed or falls through because a lender requires a permit. Have an appropriate "as is" clause written into the sales contract. 

Confer with your real estate agent to determine if seeking a permit is in your best interested when selling with unpermitted additions.

About the Author
Author

Dianne Drinkwater

Dianne is a full time, full service, state licensed Realtor®, member of Northeast Florida Regional Association of Realtors® (NEFAR), St. Augustine/ St.Johns County Board of Realtors, National Association of Realtors® (NAR), Florida Association of Realtors® (FAR), and Northeast Florida Regional Multiple Listing Service And St. Augustine/St. Johns (MLS), Shearwater Certified, and Military on the Move Designation.

She provides a unique blend of leadership, sales acumen, project management, technology, and world class customer relation skills to enhance Watson Realty Corporation's values in the real estate sales and mortgage marketplace. She is a decisive take action solution-oriented professional with 25+ years of progressive business experience who efficiently utilizes technology to improve results. She has lived in the St. Augustine/Jacksonville area since 2005 and has seen the area continue to flourish and stays well informed of future growth plans within Northeast Florida. 

Let's take a look at the lighter side of Dianne. She loves life is artistic loves music, the arts, yoga and genealogy! She loves to explore and hates to be bored. She loves the outdoors, especially plant life and wildlife. She has been a Master Gardener in Florida and Maine; as a photography enthusiast she has the eye to spot the perfect shot, which spills over to the photos she makes of the properties she markets AND frequently hires the best specialized real estate photographers/drone and videographers who make the difference in the sale. And, she loves to share her knowledge of the local real estate market and all aspects of the process to guide you through each step as a coach rather than a salesperson. 

So, let's sum it up. Buying or selling your home is an important life decision. Reasons can vary greatly from change of lifestyle, to relocation or life challenges. You need someone you can trust, count on, respect and help shoulder the stress, anxiety and time commitment involved. Doesn't this sound like someone you want working for you? 

So, what's the next step? Contacting Dianne of course. It is all about YOUR needs, goals, timeline and DREAMS! She's here to help you achieve them and she looks forward to hearing from you. 

What are you looking for in a Realtor? - Someone who will really listen to your wants and needs? Someone who will expertly market your home until the SOLD sign adorns your front lawn or if you are a buyer tirelessly researches your wish list to find that perfect home? - How about someone who will always be honest, holds ethics in high regard as a realtor, who works aggressively to get you the best price for your home and someone who knows the market? 

Selling or buying a home is a partnership with your trusted advisor- Dianne Drinkwater