Basement finished without permits
I am looking at a house on Atlanta in Rockdale county. Tax record shows its 3+2 .The seller build in the basement additional 2 + 1.
The property manager say we can get rent for 5 rooms, which is much higher. Renters dont care from tax records that shows there are only 3 rooms
Wont I have a problem to sell it?
What is the ARV of such house according to 3 or 5 rooms?
Thanks, Shiri
First, call the city to confirm if it was permitted or not. Maybe it was, but it's just not updated yet. You can always request that the seller get the space permitted first. Your renters don't care, but you might have an issue when you go to sell it if the next buyers want to make sure it is permitted.
We just bought a home that had an unpermitted studio in the back, but our offer was contingent upon them getting it signed off by the city, so the sellers go it permitted and done.
The property manager tells me, if you get a permit than you will pay higher taxes... Better not get the permit.
I don't know rockfall county, but in Fulton county it would be considered grandfathered in, as long as the rooms are in continuous use. They would lose their grandfather if they haven't been used for a year. But who would know.
Yes the taxes will go but so what. You are making money off this property. The city could make you tear out everything that is unpermitted. Then you are left with nothing of value and bill to pay for. Always permit work as its very cheap in the scheme of things. I recommend doing what @Julie Marquez said. Make the current owner deal with their issue they created. You will have issues later down the road. The permit is for making sure things are done to code for the welfare and life safety of others. Now you, the homeowner, is now liable without the permit. Here is your get out jail card and put it on the current/previous owner to take care of or walk away from the property. Remember if there is a fire started from bad electrical in the unpermitted area insurance will not cover this.
@Shiri Manor Nisenbaum Yes, you will pay more taxes. But you will also be honest and legal and better for it. Especially now that you know about the issue, do you due diligence and do the right thing. Maybe it's already permitted and not recorded yet, call down to the county to confirm for yourself.
different cities,counties deal with those issues very differently. Around Atlanta it's really not seen as such a big deal. I suspect that is to counter those old Jim Crowe laws. A lot of black people didn't trust the courts and authorities and did many things without approval. So the authorities now make up for that by declaring many old, unpermitted constructions grandfathered in. Very different in other parts of the country.
I would call the local building and permit office and ask them specifically or even stop in to their office. Tell them you are looking at a property to buy and want to know the process to make sure permits have been pulled and if not what happens and how to fix this. Like @Michaela G. you could be grandfathered. The building code office will work with you and give you the right info as they will have to sign off on it. Most of the process is filling out paperwork and paying fees. They may or may not require inspections on mechanical, plumbing and electrical.
Thanks all for good advice! This community is amazing!!!