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Buying an off market deal but no permits for reno work
Hi BP!
I am in attorney review for a property that is a great deal (30% cash on cash return). BUT the seller has been doing some major renovation work (new bathrooms, plumbing, electrical) but without Chicago permits.
My lawyer said he will require all construction to be permitted and in compliance with Chicago building code, but I'm sure the seller (who is stubborn) will not agree to such warranty (or provide permit #). This is not uncommon as most small developers try to avoid involving the City in light renovation, but this seems to be more than light reno work.
Is there a way to still make this deal work? What are the risks of inheriting a property that does not have the correct permits?
Thanks!
Graham