02-18-2013 03:37 PM
Trying to go with a purchase, seems there may be unpermitted bathroom, additional vanity outside this bathroom and a 1 of the 3 car garage converted to 1 room. Will be pulling the permits out. In case it's unpermitted, what are the risks as a buyer. How frquently a lender will deny the loan.
02-18-2013 05:55 PM
Different lender allows or disallows unpermitted work, you never know. You just have to go ahead and ask your lender upfront (before locking the rate and paying for appraisal).
My brother in-law brought a SFH in 2010 with a unpermitted room addition in the garage. Lender asked to tear it down. No problem, he hired contractor to tear it down AND to patch up everything for $1,500. And the underwriter ok it and funded the loan.
Really depends. Some 'additions' are just a few beams with separation walls and one door. You can tear it down in one morning and patch to original in the afternoon. If plumbing is involved, just saw off the extra and plug the rest.
Just make sure this is the only condition of the underwriter and he will absolutely fund once unpermitted work is corrected.
02-18-2013 06:25 PM
I bought a home with a 3rd garage converted to a office room/ rec room. No questions asked...and I got a good deal.. I may make it permitted depending on how much it costs...
02-18-2013 10:06 PM
Thanks. How about insurance. I read in one of the threads AAA denied the insurance. Lets say it is insure, what's the risk of insurance claim denial lets say there is a leakage from unpermitted bath or may be a fire originated from unpermitted garage room.
02-19-2013 09:11 PM
My unpermitted room doesnt have plumbing but has electrical connections. My insurance is AAA and the manager came to inspect 2 days before we moved in. He walked around the house , saw everything and said nothing and approved the insurance. If something happens I doubt they can deny as they themselves have inspected the house ...Plus my house is pretty new ..build in 2003 compared to a lot fo LA area homes which are from the 40s and 50s..
02-21-2013 12:30 PM
"Unfermented bathrooms" are nice. I wish we had those here on my deployment to Afghanistan..
I am guessing auto correct struck again.
I just bail when I see anything with unpermitted work... I think CA invented red tape and fees.... not worth the risk to walk into giant can of them.
02-24-2013 11:28 AM
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