Selling your California home with unpermitted work

Question: Dear Kari, My husband and I are preparing to sell our California home of 15 years and relocate out of state for his job promotion. When we shared our moving plans with our neighbors, they told us the previous owners made several repairs and upgrades on the home without any permits. Therefore, our question is, can we sell our California home with this unpermitted work? Answer: I'm very sorry to hear about this surprising unpermitted work issue and any difficulties it creates for you. Unpermitted work refers to any renovation, alteration or repairs completed on a home without the necessary and required building permits from the local city building department. It is good to know these requirements vary by each county. Many homeowners undertake unpermitted projects. It is often to avoid an increase in property taxes, save time and money by rushing the work, unaware of permit requirements, a belief that DIY projects are exempt, or because they simply don't plan to sell their home. The reasons behind the required permits are to protect homeowners and future occupants by ensuring all work performed meets safety and liability standards. Unpermitted work might not be up to code, potentially leading to structural failures, fire hazards or other dangerous situations. Yes, you can sell a home in California with unpermitted work. However, California has strong disclosure laws, meaning you have a legal obligation to inform potential buyers of any known material facts that could affect the value or desirability of the property. This absolutely includes unpermitted work even if the work was made by previous homeowners. Failure to disclose can be considered fraud or misrepresentation, which could lead to serious lawsuits. To begin, verify if your home does in fact have unpermitted work by checking with your local building department's records for permits. Steps to consider once you know your home has unpermitted work: · Sell your home "as is," meaning the buyer accepts the property with the existing issues and takes over responsibility for them. You still must disclose everything about the home, including the unpermitted work. · Correct the work by obtaining retroactive permits, which would involve applying for permits for the unpermitted work after it has already been completed. This can be costly and time-consuming, but it can increase the home's value by making it more appealing to buyers. · Restore the home to the original condition by undoing or taking away the changes and restore it to the original state. This eliminates the need for permits. In addition to this, unpermitted work can create significant hurdles for buyers, potentially causing issues with their mortgage lender or appraiser, and even leading to the denial of homeowner's insurance. In California, seller disclosures are crucial for protecting both buyers and sellers by ensuring transparency about a home's condition. Buyers' informed decisions can shield sellers from future legal disputes, especially when unpermitted work is openly disclosed and accepted by the buyer. Best of luck in your home-selling adventure. This article does not constitute legal advice. If you need legal advice, please consult a local real estate attorney.