Buying a home with work done on a home without permits?

Would you or have you bought a house that didn't have permits on work they did?

Did you ask the seller to take care of it? Did you just leave it alone hoping everything would be ok?

I guess I would like to hear people's experiences if you don't mind sharing.

What does a permit generally cost?

Buying a home with work done on a home without permits?

Depends what the work was. Do you mean it doesn't have a c of o. If that's the case I would have sellers obtain all c of os prior to closing.

Re: Buying a home with work done on a home without permits?

Yes, there are no c of o's.

As I am calling to inquire about houses, I am noticing that a lot of them have had work but missing co's. The agents are telling me this over the phone.

Re: Buying a home with work done on a home without permits?

It may not actually be up to you. Assuming you will be getting a mortgage, your lender may not let you close without all C/Os. Also, you won't actually find out what C/Os are missing until your attorney runs the title search.

We're buying a house now that's missing a C/O. Our lender requires that there are C/Os for everything so our attorney sent a letter to the sellers attorney. All C/Os will be obtained before we close.

Buying a home with work done on a home without permits?

we bought a house with a semi finished basement in 2006 (no heat, no bathrooms, etc). We asked the seller to get a c/o and they basically said no that that would be a deal breaker for them. The bank didnt require it, so we let it go. Of course, the housing market was way different then.

Buying a home with work done on a home without permits?

The seller can hire an expediter to speed up the process.

Re: Buying a home with work done on a home without permits?

I think there has to be a balance here. The majority of houses sold on Long Island have something that was modified without obtaining a C/O. Most houses on Long Island are older homes that have had several owners through the years who have made various changes. Contractors often tell people that they don't need C/Os and discourage them from getting them.

There's really no "one size fits all" advice -- it depends on what kind of improvements were made without C/Os, and a variety of other factors.

If something major and integral to the house (a second level, a dormer, an extension), then I would always counsel my buyer client to ask the sellers to get the C/Os prior to closing. Those types of changes add to the value of the house significantly, and it can be a real problem (and costly) to get the C/Os down the line if you want to sell.

However, if there are minor things -- e.g., a deck, an above ground pool or hot tub, a basement bathroom, a half bath converted to a full bath, etc., then it's not such a big deal. As others have said, some lenders are strict and will require C/Os for everything, but many lenders will overlook these minor things. If it's an interior thing, like a basement bathroom, if you don't call attention to it during an appraisal, it often never comes up. You just don't want to add value for something that has no C/O, so if the house has 3 baths, and the third bath is in the basement with no C/O, I'd count it as a 2 bath house for purposes of looking at comps and determining market value.

For example, if you have a garage conversion with no C/O, some banks that I've worked with will let it slide, but they won't add any value for the converted living space (it won't count in the square footage for the appraisal).

Even if your lender doesn't care about a missing C/O, you have to think about whether you, as the buyer, care. But keep in mind that a seller would often rather rip out a minor item (like a deck or half bath) than get a C/O for it. Once you invite the town in to inspect the property to issue the C/O, they may nitpick and find many other violations/things that need to be brought up to code. It can really open a hornet's nest. Certain towns (such as Town of North Hempstead) are notorious for this. So for something minor that you would like to keep, you are probably better off leaving well enough alone.

If C/Os are important to you, make sure you not only ask the listing agent/seller about what has C/Os, but make sure you see them. Sellers will sometimes honestly believe they have it, when they don't. Sometimes they didn't do the work; they bought the house with an extension or a dormer and assume that the C/O is in place because it wasn't an issue when they bought. But that doesn't mean there's a C/O. Likewise, because an addition or improvement is being taxed (you see it on www.mynassauproperty.com) doesn't mean there's a C/O -- assessor's office is a completely different department from the building department. Often sellers think they have everything, but what they really have is an open permit that was never closed out. So make sure you see the C/Os themselves before going to contract.

If the seller doesn't have the C/Os, they can be obtained by going to the town. I always request C/Os from the town when I take a listing (public records request) and it takes about 2 weeks to get results. But for instant results, I've gone to Town of Hempstead, for example, and requested all C/Os and open permits. They charge $25, but anyone can pay and get them.

Cost for getting a C/O varies. It depends on what needs to be done to bring the work up to code (if something was done in 1980 with no C/O, changes may need to be made to bring it up to 2014 requirements). It also depends on whether a variance is needed. Hiring an expeditor is usually the way to go, but they can be pretty expensive.

So my advice is - gather all of the facts (and verify what is being told to you), and then discuss it with your agent and attorney. You want to be careful (and definitely don't add value for things without C/Os), but also let a measure of pragmatism guide your actions. It's not always the best course of action to demand every C/O be obtained... that may not be in your interests. And if it's a minor issue, keep in mind that it's not a unique issue. It's likely to come up on other houses to some extent or the other. Almost every house I sell (unless it's new construction) has something missing.

Re: Buying a home with work done on a home without permits?

We just went through this nightmare. We bought our home that didn't have the proper c/o's (never came up on title search for some reason), and it has taken 4 YEARS and tens of thousands of dollars to make our house legal. Complete effing nightmare. I don't suggest it.

Buying a home with work done on a home without permits?

When we bought our home we needed to wait until the seller got the c/o on the work he had done on the home (converting a garage into living space) before we could close. We didn't have to do anything though, it was up to the seller.

Buying a home with work done on a home without permits?

We bought our house in 2000 with no permits for the deck, fence, above ground pool, shed (we knew this) and it wasn't an issue closing. Fast forward a few years and we dormered the house - and the town would not give us the c/o for the dormer until we got all the permits. It was a hassle (variances and plans were needed). I imagine getting c/o's for older structures would be worse.

Buying a home with work done on a home without permits?

i have a question for century21/christine- if a hot tub is on the survey but there is no c/o- is it "legal"

Re: Buying a home with work done on a home without permits?

No, it is only "legal" if it has a C/O. A survey just shows what is on the property. The fact that it's there doesn't make it legal. Often, that is how a missing C/O is picked up for an exterior improvement. It shows up on a survey, but not on a C/O search (which is done by the tiger company, ordered by the buyer's attorney).

That being said, a hot tub is exactly the type of thing that most people don't get a C/O for. I would be shocked to encounter a seller who had a C/O for a hot tub, lol!

Buying a home with work done on a home without permits?

For me, personally, it's a deal breaker if it's something inside the house. Outside the house - a deck, shed, patio, pool, I would be OK with becasue taking any of those things down wouldn't be such a big problem. Even if my bank allowed it, I would be concerned about it becoming my problem when the day comes when I want to re-sell the house.