Have not had that issue here, but the city folks are getting tougher every day.

yes.... usually basements in our area.... and the seller gets a slap on the wrist, fined and pulls a permit for triple the fee.... and then inspected...

It comes up more often than people realize. I've had to negotiate after-the-fact permits be obtained by sellers more than once for my buyers.

It has not yet for me in my 15 years here in Minot ND or in my previous life in Moorhead MN Jeff Dowler .

Yes.  I have had listings and represented buyers where there has been un-permitted space.   Often it is property specific -- what you see is not what is reflected in the public records.   In some of our older properties, it can be common to find discrepancies.

Additionally, it can depend on the type of buyer financing and the lender. The workmanship of the "addition" can also come into play.  

An upfront discussion with the lender can sometimes resolve issues.   

Good luck -- some of these situations are easier to resolve than others.  

I had a seller tell me, 2 days before closing, that he'd built the house entirely without permits! He was a noted contractor/builder in the area. We had to quickly order a "survey permit" from a county inspector to make sure he'd done it up to code. It passed but I was sweating bulletts then--one of my first deals way back in 1978. But it is very common in our area. We have a resort area on the Russian River and many of those homes where NEVER built with permits. No records were kept then either.

I pointed this out to an appraiser that didn't include the adition.  All I got wa a so what!

Yes, actually just occured  - made appraisal without the addition

We can now go online at the City of Austin to see about any permits that were or not taken before we write the offer. Always include closing out or getting a permit for items you see.

Lots of unpermitted stuff.  Even decks are supposed to be permitted but people don't even know they are suppose to be.   Sometimes the current owner doesn't even know.  Appraisers don't seem to check and neither does the assessor apparently so it doesn't usually come up as a problem unless the buyer really cares, requests them and then they have to be pulled after-the-fact.  I can't remember it ever affecting an appraisal and having to be deal with it though....how hard is it to get after the fact permits in your area? -Kasey

   Yes.

      Not an addition, but recently an unpermitted driveway from the back of the house to the street behind the house.  The Seller made application to the City, they paid a fee of $500 and were granted the permit after-the-fact.

    I once had a "lean-to" torn down from the side of a house, and I have had at least two enclosed garages "put back" by re-installing a garage door.  

Not an addtion but a pool without a permit and it violated city codes. Got it worked out but they could have demanded removal.

Yes it does. We have a lot of folks that turn their garages into a bedroom and put in a bathroom. No fly zone!

I have not had that issue come up yet.

How would the appraiser know? In my area they do not check. I do not check either but I'm sure that title has passed with some sort of code violation. No one here gets permits when they get a water heater replaced & they should.

Jeff,

It depends on the city jursidiction and how they view it.  A

I have not experienced this issue.

Jeff Dowler -  sometimes this can happen!

Never during the appriasl but, during the Due Diligence period when we're uncovering & discovering. It's not an easy fix all of the time, Jeff Dowler. I've had walls that had to be torn out to re-inspect (or FIRST-inspect!) electrical and plumbing that a seller did on his own. HVAC units that simply had to pay to have the inspector come out to document that a county inspector had inspected them also. 

Some time it is a problem

I have not had that happen, yeat the appraisal process. At listing, sellers are asked if they pulled proper permits for any additions. This is when it is addressed. This is when corrections, inspections, permit fees can be completed.

I have not had that come up yet as an issue Jeff Dowler and we have a lot of it in my area. 

Most excellent question Jeff...Lets find out

Of course.

However, such space is disclosed and will be an integral part of the accepted purchase offer.

It is addressed by advising the buyer that space can disappear, but if that happens the buyer is still buying at the negotiated price.

Yes, especially in older homes!

Have not experienced this yet.

It comes up as an issue when the appraiser can't consider it as part of the square footage because it didn't have a permit.  That doesn't happen too often unless there is some obvious reason why it wouldn't be to permit.

If I suspect any additions were done, I ask about permits and let the sellers know it could be an issue when I'm signing them up.

All the time, Jeff. It's the bane of my existence. Sellers who bought the home that way do not understand that government regulations have changed since then, and lenders are much more strict.

We have 3 basic choices. Suck it up and lower the price because it appraises at the square footage noted in the tax rolls. Get a permit after the fact (which cost one seller $8,000 and they had to open the wall). Hope there are other homes with the same addition w/o a permit that maybe or maybe not the appraiser will find and use, which is doubtful.

Yes.

We've had TDS disclosures, to written addendums accepting it as-is, to sellers being required to have the city review and hand out solutions to get permits. Over the years I've seen it all, but often in a market like this, buyers adopt the issue for want of the house and extra sq.ft. and accept the risk...but we document this. 

Only once....a long time ago....

Resolve--must be inspected by city and pay for permit

Not so far, but I can see how it would.

Yes