Non-Permitted Room.... what to do?

Question

Non permitted room, what to do with that?  I just got another offer accepted, but realizing the second room was not permitted, 2 or 3 owners ago, so will that put me in trouble when I resell after my repairs?  Is there a penalty (or need to destroy the wall, or get city inspection if up to code) if city discover it?  I think usually there is no problem, but I'm not sure how to deal with that.  I'm still in my contingency period, I can still get out of the deal but I like the place...  thanks

Nadine Lajoie · Answer

thanks a lot... still evaluating my options this week when I can still get out of the deal... unfortunately, already negotiated 15k down and cannot get it lower, already 4 back-up offers... California is crazy!!!

Thomas S. · Answer

Make sure your offer is low enough to cover your risk of losing the room.

Kinley Puzey · Answer

@Nadine Lajoie,

The biggest problems with non-permitted rooms is it may not be up to code (structural, electrical, etc). If they are selling it as if it is permitted then you can most likely get out of the deal or get the price reduced.

If you do like the place and it's not permitted you could go through the process of getting it permitted after your own it. This would include paying inspection fees, updating any windows, electrical, or structural items as necessary so it meets current code.

I found this other post that talks about it as well. See below:

https://www.biggerpockets.com/forums/311/topics/12...

good luck

Kinley