Buying / Selling A House With Unpermitted Work
Buying or selling a home is often one of the most significant decisions we make in our life. However, when a house has unpermitted construction, it can bring a host of potential problems and risks for both parties.
Many homeowners in Miami do not obtain necessary building permits before performing a major construction to avoid the hassle of dealing with paperwork, save their money upfront, and/or avoid property taxes.
Whether you are a buyer or a seller, understanding the implications and knowing how to handle these situations can make the process smoother and more manageable.
Here is everything you need to know about buying or selling a house with unpermitted construction in Miami.
Not impossible, but can be difficult. You have two choices;
Sell it for Cash As-Is
Many potential buyers are resultant to buy a house with undocumented work because of safety concerns and amount of time and hassle involved in legalizing it. If you cannot afford to correct the work, obtain estimates for the necessary repairs and provide this information to potential buyers to facilitate negotiations.
Get a Retroactive Building Permit
To sell your house to the best market price, you will have to legalize your unpermitted work by;
1) Removing the unpermitted work done and bringing your home back to its original condition
OR
2) Obtaining a permit for your unpermitted work
How to Obtain a Permit after the Fact?
To get your unpermitted work retroactively permitted, you need to apply for inspection and seek permit approval from the building department. The building and safety department will conduct inspections and may ask for removal of walls, ceilings, or floors to make sure the work is done correctly. They may also ask for necessary remedial work to bring any violations into compliance.
To obtain a retroactive building permit, you will need to;
- Meet with the Building Department
- Hire an Architect or Designer to Draw Floor Plans
- Submit Documents for Design Review
- Schedule Inspections
- Corrective Work & Final Inspection
The time and costs involved in obtaining a retroactive building permit may vary depending the type of volume of the unpermitted construction.
What Happens if You Do Not Disclose Unpermitted Construction to the Buyer?
If your house contains unpermitted work and you choose to sell it as-is, it is important to disclose it to the potential buyers to avoid any legal repercussions. Even if the unpermitted work was done by a previous owner, failing to disclose it to the potential buyers can lead to potential lawsuits and legal disputes. If the undocumented work causes injury to an occupant or damage to the property, you will be held responsible as the current homeowner. For buyers, it is important to hire a qualified home inspector to assess the quality of the unpermitted work and identify any potential issues before sealing the deal.
Should You Buy a House with Unpermitted Work?
While there are many risks linked with purchasing a house with unpermitted construction as is, you can ask for a discount from the buyer to legalize it.
What Happens if You Buy a House with Unpermitted Work?
Here are some potential pitfalls of purchasing a house with undocumented construction;
Homeowners can be subject to fines and penalties if local authorities discover unpermitted work. These fines can accumulate over time, leading to substantial financial burdens.
Financing Challenges
Many mortgage lenders in Miami might be reluctant to finance houses with unpermitted work, leading to potential difficulties in securing a loan.
Unsafe Living Conditions
Unpermitted work may not meet the safety standards required by building codes, leading to potential issues with the structural integrity of the home. This can pose significant safety risks to the occupants.
Reduced Property Value
When it comes to selling a house, unpermitted work can negatively impact its value. Potential buyers may be wary of inheriting the risks associated with unpermitted work.
Limited Marketability
The pool of potential buyers may be smaller, as some may not want to deal with the hassle and risks of unpermitted construction. This can lead to longer times on the market and potentially lower offers.
Coverage Denials
Insurance companies may deny covering damage related to unpermitted work, which means you will have to deal with hefty repair bills in case of any unfortunate incident.
More Taxes
When you bring the unpermitted construction up to code, your property taxes may significantly increase.
Both buyers and sellers face unique challenges when dealing with unpermitted work. For buyers, it is crucial to thoroughly investigate the property and understand the potential risks and costs. For sellers, transparency and proactive measures are important to mitigate issues and facilitate a successful sale.
It is advisable to seek the assistance of expert professionals who can navigate the complexities of unpermitted construction.
Navigating the Challenges of Buying
& Selling of House with Unpermitted Work
For years, we at CCS Inc have been helping buyers and sellers in Miami deal with unpermitted work in the most amicable manner possible.
From pre-purchase inspection of a house to legalizing the unpermitted work, we can expertly handle every challenge to help you achieve a smoother transaction.
Reach out to us today and let us find an appropriate solution for your situation.