I recently had a Real Estate Contract terminated due to a finished basement that was not permitted, so I thought it might be helpful to alert buyers and sellers as to the importance of pulling permits.
When purchasing a home with a finished basement, the first place to look to see if it was permitted is the public record. If it shows Finished under basement it most likely was permitted. If it shows unfinished, you need to ask the listing agent/Seller if they pulled a permit. It could be they are waiting for the final permit/inspection, and will have that before closing.
If the Basement finish was not permitted, and you go ahead with the purchase, once you are on Title it is now your responsibility. In the event of a fire or accident related to the work, in some circumstances your insurance could be invalidated. When you go to sell the property this issue could come up with your buyer, and again, it becomes your responsibility. Pulling a permit after the fact is possible, but each jurisdiction has different guidelines, and there could be penalties, you might have to tear down drywall for the inspector to inspect work behind the walls (i.e electrical, plumbing) So it’s important you know the risk.
Thus I say when in doubt, about whether or not you need to pull a building permit , check with your local jurisdiction for specific departmental and code requirements. You can find guidelines on most municipalities web sites. Yes it cost money to pull a permit, and the property will be subject to higher taxes, if the improvement increases the properties value. I know everybody has different views and opinions when it comes to this subject, but it’s important to weigh the pros and cons.
