Basement Permit for work completed by previous owner (sales, real estate)
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Hello, I'm looking to buy a place in middlesex county which has a finished basement but the owners do not have the permit for it.
My question is,
- what does it take in the middlesex county to get a permit after the project is completed (and is probably completed for years)
- does the county charge you for all the back years taxes for the 'additional living space'?
- Is there a contact/website where I can get the county's official's phone number/contact for this respective work to find out details?
Hello, I'm looking to buy a place in middlesex county which has a finished basement but the owners do not have the permit for it.
My question is,
- what does it take in the middlesex county to get a permit after the project is completed (and is probably completed for years)
- does the county charge you for all the back years taxes for the 'additional living space'?
- Is there a contact/website where I can get the county's official's phone number/contact for this respective work to find out details?
Thanks
Raj
If you are the prospective buyer, this really shouldn't be your problem, but rather the sellers'. IMO, the sellers need to go to the town and figure out what they need to do to make it right. Their realtor should be helping them do this, and shame on the agent for not making sure this was all done before the house went on the market anyway. Some towns don't require Certificates of Occupancy, so some people/realtors hope they can just sell it without the buyer knowing or caring about it.
This will probably involve the inspectors coming out to make sure the work is done right. It can be quite complicated, or simple. Depends. It will also most likely raise the assessed value of the home. There could definitely be back taxes applied too, but the sellers would have to pay those I would think.
In any case, if you're the buyer, this isn't your problem and I wouldn't get too involved in it. If you still want the house, I guess you could have your lawyer write in a clause in the contract that they will get all the permits by a certain date and if not, deal is off and you get all your money back. If it was me, I would walk away entirely until they get it all cleared up. As long as I wasn't under contract yet, which hopefully you are not.
If you are already under contract, hopefully you saw the sellers disclosure before you made an offer and signed a contract. I think there is a spot on there about "all work being done under permit." If there is, what did they say on that? Did they lie?
I got involved with something like this once and it turned out that the sellers had to rip out all of their unpermitted, shoddy construction because it would have cost a ton to get it cleared (zoning board, architects drawings, etc). And yes, they lied like rugs on their sellers disclosure.
Thanks for the prompt response. I'm not under any contract right now.
The owner wants to sell as-is and is the direct seller (no agents). So, if I like want the house, the responsibility to get the premit and get the basement cleared is on me.
Would you know how much the total costs can run upto to get the required approvals so I can put an offer accordingly?
JMO, but I think you'd be crazy to get involved with this deal. As a PP said, you may have to end up tearing the whole thing out before you could get a CO.
It's not the buyer's problem. The seller must be able to get a CO. Most times it's a simple matter of paying for the permit and having the inspection; some towns will give you a hard time. Call the building inspector for the town and ask if there are any open permits. good luck!
In many towns, the township won't even bother to check to see if a permit was pulled, so he'll get the CO and it won't be a problem. In some towns, however, it will be an issue, and you won't be able to get a CO without getting it cleared by the city. The requirements to remedy the situation will vary from town to town- could be payment of a permit fee, or could be tearing holes in walls to let the inspectors see electrical, etc. The only way to find out for sure would be to call the town.
Oh good, glad to hear you aren't under contract yet. I'm not a lawyer, but the fact you aren't using agents doesn't matter. You'll still have to have a contract of sale between the two of you, and you'll want to have a real estate attorney to look over the contract before you sign it.
If this town requires a Certificate of Occupancy (CO) to occupy, then there will be a town inspection, and the inspector may or may not catch it. Most likely, the inspector will catch something big like this, because one of the main reasons towns require COs is to make sure people don't evade property taxes like this.
Here is where it gets tricky. If your sales contract requires a CO, then the responsibility will lie with the seller to get it before the sale can go through. Then you are protected.
If your sales contract does not require seller to get the CO, but instead you take on this burden, then the sale will go through with or without the CO. But you as the buyer/new owner, will have to make sure you get the CO before you even are allowed to live in the house, hence the name of the certificate. You could potentially then own a house that you can't live in, without remedying this unpermitted basement. Also, then you will be responsible for getting the CO, which may be very simple, or very complicated and expensive. It's a total unknown.
Here is my advice, and I say this only as someone who has had a situation like this and I am not a lawyer. There is no way I would buy this house without having it in the sales contract (that a lawyer of your choosing reviews!) that the seller is responsible for getting the CO prior to the sale. If you are in a town that does not require a CO, then you may take a different route, but I would consult with a real estate attorney in that case too before you go under contract. You are taking on a huge unknown and it is not customary for a regular buyer to take this on; it is the seller's responsibility.
I hope this helps.
P.S. If you need a good attorney, Ann Motola in Lawrence (Fox Rothschild I think) is excellent.
Hello, I'm looking to buy a place in middlesex county which has a finished basement but the owners do not have the permit for it.
My question is,
- what does it take in the middlesex county to get a permit after the project is completed (and is probably completed for years)
- does the county charge you for all the back years taxes for the 'additional living space'?
- Is there a contact/website where I can get the county's official's phone number/contact for this respective work to find out details?
Thanks
Raj
Even if you can get a township CO you still have to worry about the work being done right.......should there be an electrical fire or something down the road that requires insurance repairs they may not cover it if you didn't get the proper permits for the work done.
This is not your problem.....even if they wish to sell as is the seller needs to provide certification that the work performed meets code and was inspected.....if they don't.....or won't......I wouldn't walk away.....I'd run away.
Even if you can get a township CO you still have to worry about the work being done right.......should there be an electrical fire or something down the road that requires insurance repairs they may not cover it if you didn't get the proper permits for the work done.
This is not your problem.....even if they wish to sell as is the seller needs to provide certification that the work performed meets code and was inspected.....if they don't.....or won't......I wouldn't walk away.....I'd run away.
I agree. In this market you are in the drivers seat, I am sure buyers are not beating down his door. There is a lot of inventory out there. I am sure the seller really wants to sell this house and realizes anyone else interested in buying it would also request the same. Good luck.
Make sure there are permits even if they get a CO - we had this problem.
We purchased a townhouse, the previous owner converted the garage into a family room. They got the CO no problems.
We go to sell a couple of years later - guess what the town comes to inspect, and he checks no permits for the work. It took us awhile to get the CO - they had to send in inspectors to inspect the work. I question how could the previous owners get a CO when selling and they did the work and they didn't question the permits? They didn't have an answer or care, it was now our problem. Who knows maybe the previous owners knew someone and it got pushed thru.
So even if they get a CO - GET PERMITS! Because when you go sell you may have to prove the work was done with permits.
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