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Based on the number of unpermitted additions I have seen I would say no. This is a buyer due diligence issue.
Wouldn't there be a disparity in square footage with the listing and town records, though? I thought appraisers measure square footage...but then again, that doesn't mean they check permits.
Sorry that I'm posting in spurts, just thinking this through. The role of the appraiser is to determine the value of a home for the lender. An illegal addition would be a detriment and would detract from the square footage/value, right?
I don't think appraisers or buyer's agents research building permits. Depending on the City or County, it can be very easy to do, or it can be very frustrating.
You are probably on your own.
One other question- what do you see as the buyer broker's role in determining if proper permits have been obtained?
I have a due diligence checklist for my buyers, and either I, they, or we both go to the city together and pull the permit history. You stand in line for about 5 minutes and they print it out from the computer database.
It is online in my area for newer homes, but you have to pull it at the city for the older permits.
Most buyer agents don't pull them for liability reasons. There are so many asinine, as well as legitimate, real estate lawsuits, that we are at the point where some agents do very little in assisting their clients with due diligence.
Buyers should always pull the permit history. What I see most often is that the permits were indeed filed, but never finaled (meaning passing the final inspection).
I don't think appraisers or buyer's agents research building permits. Depending on the City or County, it can be very easy to do, or it can be very frustrating.
You are probably on your own.
I can't answer for appraisers, but I put a fair amount of effort into trying to determine that additions and finished areas were permitted.
We have a lot of bonus rooms, attics, and garage conversions done without permit.
Probably don't catch them all, but I like to think I catch a lot of them.
One other question- what do you see as the buyer broker's role in determining if proper permits have been obtained?
What their role OUGHT to be and what it IS, are two different things. I've yet to have a stellar agent that found these things for me. I've always researched them myself and made my own calls to the city.
An agent ought to have current information about any updates that have been done on a house. If there was work done, they ought to have a print out from the city that shows it was permited work.
I had one home that I was trying to have pmi removed and asked for an appriasal from my lender. The appraisor told me HE pulled up the information on my house to bring with him. He said had we done unpermitted work, he would have reduced the amount towards the value of the improvements done.
I'm going to the town office tomorrow. Also, when looking over my title company/insurance, it seems that they also (supposedly) research permits. There are multiple ways and chances to address any violations prior to closing, thankfully.
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Also, when looking over my title company/insurance, it seems that they also (supposedly) research permits. There are multiple ways and chances to address any violations prior to closing, thankfully.
