Unpermitted addition

[Randall Greene]

What's the best way to address an unpermitted addition when negotiating sale price?

[Will Barnard]

I agree with Jason that you can run into some liability issues, however, would add that it can be avoided by disclosing to your buyer the fact that an illegal addition was added without permits. Disclosure is key in real estate.

There is nothing wrong with buying properties with additions that are not permitted or on title. I have done several, in fact, one last year where I had a large livinng room that was added, but never cleared on title. I had the city inspectors out, completed the repairs, and then it was added on title and I was able to sell the entire property for more due to the larger square footage.

I am working on one now that has approx. 600 sq. feet of unpermitted living area attached to the existing home. All that is required is to get the structural engineer to draw up the plans and submit to the city for approval. The other option is to not permit it, sell and disclose, disclose, disclose.