Under Contract for a house currently being flipped with unpermitted work

[David Georgeson]

So I am under contract for a house that I like and the location is perfect, however,  It was bought by a flipper who is currently in process of flipping it for resale.  I put in a contract that I can walk away from anytime up until closing, and the issue that concerns me is that they did not pull out any permits to do any of the remolding.  I don't believe they are doing any structural changes, but I do know they put new shingles down, a midway inspection has revealed they have disconnected plumbing and wires coming out of electrical sockets so I am assuming they are doing at least some minor modifications to those areas.  My question is, should inform the city inspectors myself and have them make sure the proper permits are being pulled for this renovation?  Outside of just walking away from the contract, what would you do if you knew possible unpermitted work was being done?  I guess the main reason it concerns me is for liability reasons if I end up making modifications or turning it into a rental in the future.

[Jay Hinrichs]

Quote from @Jason Wray:

Walk Away!  There are No banks or Lenders that will finance or refinance a home that had renovation or construction done and the GC or flipper "Did Not" pull a permit.  The Bank/Lender willl require the county to send out the "County inspector" and they will in most cases have you remove, rip-out, or "Unconstruct" the work that was done without a permit.

I have seen this a lot over the years where someone buys a home and the previous owner put in a bathroom down stairs, converted a garage, tore down support walls, built out even ADU not permitted and not within zoning and had to be literally destroyed costing thousands!

Do not cut corners when it comes to Building, Permitting and Zoning!

Jason ,  I have never seen a bank ask for copies of permits.. unless there is something on the title report that has been recorded ..  Or if its so wild that it comes up on an appraisal. 
In rehab and fix and flip most states do not require permits to put on new roofs first off.
and minor plumbing and electrical 95% of the time no one pulls permits.. Just another view. 
So to me this is very jurisdictional issue some cities are very stringent some are not. 

Just my experience funding flippers for 30 years.