Legal Question in Real Estate Law in California
Building permit
When purchasing a home who is responsible for verifying that proper building permits were pulled for a room addition? The escrow company, title company, appraiser, lender or who?
4 Answers from Attorneys
Re: Building permit
In the final analysis I'd have to say the purchaser.
The seller has a statutory obligation to disclose any
problems, for example, a non-permitted addition. But, the buyer will be charged with notice of anything that a reasonably prudent inspection would
have disclosed. This is especially true if something the buyer sees raises a question.
Most buyers engage a homebuyer's inspection service to assist them in doing an inspection. Most inspection services will not research building permits, but limit their inspection to what they can observe in and around the home, without conducting destructive testing.
If you have suspicions, pose the question directly to the seller. An experienced contractor can often tell if there's been an addition. If the eveidence is there, demand a copy of the permit. Also, have your broker research permits at building and safety.
Remember, at some point you'll want to sell the property in question, and you'll be under the same affirmative obligation to disclose. I urge buyers that I talk to be aggressive when they investigate the home they'll buy. Don't passsively rely on the seller and the seller's broker to tell you everything you need to know. If you have the slightest suspicion, investigate!
Best of luck, and now the inmevitable caveat: The foregoing information is provided as an accomodation only and does not constitute a legal opinion based on review of all relevant facts and documents and research of applicable law. Further, provision of the information shall not be construed to create an attorney-client relationship.
Best Regards,
Tom Newton
Re: Building permit
The Real Estate Transfer Disclosure Statement asks if there have been any additions or modifications done without necessary permits. If they answered "No", and in fact a permit was required, and they did not obtain one, they could have liability for fraud.
The purchaser of the home is normally the one who needs to checkk to see if the permit was actually issued.
Re: Building permit
None of the above. The Seller should do it to know the true value of the home and to properly disclose. The Buyer should do it to know exactly what he is purchasing. The Appraiser will probably catch it and the Lender will base its loan on whether any certificate of occupancy was ever issued. And a Home Inspector could aid the Buyer; but a prudent Buyer will check the permits himself.
Re: Building permit
The buyer is usually the one who should be checking, as the seller may or may not know whether the room was permitted or built according to code, unless the seller says as much when selling the house.