Home Renovators-beware!

By Author: Claude Cross
Total Articles: 4
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The modifications look great! You say your client and his buddy did it? Well I can see they are very talented. I just have one question. Did they get the proper permits and have the job inspected?

Maybe it's just me, but I seem to have run into more than my fair share of home renovation projects lately that have the missing permit syndrome.

I sell Charlotte NC real estate. One home I came across yesterday had a recent major renovation done. The tax records didn't jive with the square footage listed in the MLS. Tax records not consistant with the actual home size, happens all the time. So do home renovations. The flag for you as a real estate agent, is the obvious home renovation, like this one.

The garage was converted and an extra bathroom was added. They must have been inspired by HGTV because everything looked over the top gorgeous. This was a beautiful job. It looks great on the surface, but how can you tell if there are any underlying problems?

After talking with the listing agent, he said he was sure the updates had permits. My seller did a professional job! Heck, look at the workmanship. ...
... I persisted after his puffing and insisted he get verification from his sellers. Two hours later I get the call back. We may have a problem.

I told him There is no we, and there is no may. You and your Sellers definitely have a problem.

The Seller never pulled electrical, structural, HVAC, or plumbing permits. They didn't think there was a need as they knew how to do it right.

So the extra 400sqft, and the beautiful bathroom, and the new cool breeze, have a red badge of courage.

Here in Charlotte NC, you can still have all of this inspected and permitted retro. It just takes time and extra work (if the work was done up to code). And even if it's not up to code, it can still be fixed. Again, more time and extra work.

But what if nobody asked? What if assumptions were common practice?

Permits and inspections are for everyone's benefit. They are to insure the quality of the work and safety of the occupants of the house. You may be surprised on how many homes are infected with the missing permit syndrome.

Some real estate agents take the visually pleasing addition way too casually and take many things for granted.

I recommend you make darned sure you ask if permits and inspections were completed. In addition, let your Sellers know the ramifications if they weren't. If the house burns down after closing...or it floods due to an excessive rain; your sellers can look for a non-disclosure lawsuit. Pretty serious stuff. Failure to Disclose about building permits is a big issue that puts the Sellers (and everybody involved in the sales transaction-you, the sellers agent) in jeopardy. There may be homeowner insurance issues as well.

These questions should ring true for Buyer agents as well. It can also prove to be a big problem for future buyers down the road when they go to sell the property. I'm sure many of you can think of other ramifications.

And for the unfortunate buyer who bypasses an agent and deals directly with Mr. FSBO, Caveat Emptor.

Failure to Disclose about building permits is a big issue that puts the Sellers (and everybody involved in the sales transaction) in jeopardy. God forbid an electrical problem from the work causes a fire or the plumbing causes some awful backup or costly leak. There may be homeowner insurance issues as well. It can also prove to be a big problem for future buyers down the road when they go to sell the property. I'm sure many of you can think of other ramifications.

We all know the mantra chanted by brokers: disclosure, disclosure, disclosure.

But how do you disclose if you don't ask the right questions? Ignorance is not bliss concerning the basics of building permits and not when it comes to Charlotte NC Real Estate.