Unpermitted work in a home you bought — what to do about it

This article is for educational purposes only and is not a substitute for professional advice. Local codes, regulations, and best practices vary by region.

You bought a home and during your inspection, you discovered an added bedroom, finished basement, or renovated kitchen that was never permitted. The previous owner did the work without getting a permit or having inspections. Now you own a home with unpermitted work. You’re worried about safety, liability, and resale value. Understanding your options and the risks helps you decide how to handle it.

How Unpermitted Work Affects You

Unpermitted work creates several problems. First, it might not meet code. Without inspections, there’s no assurance the electrical system is safe, the structure is sound, or the plumbing is properly installed. Second, you have liability exposure. If something goes wrong with unpermitted work, your insurance might not cover it. If someone is injured due to unpermitted electrical work, you could be personally liable.

Third, unpermitted work affects your home’s resale value. When you sell, you must disclose unpermitted work. Buyers will be concerned about it. Some will demand it be remediated. Others will walk away. All will use it to negotiate a lower price.

Fourth, your city might discover the unpermitted work and issue a violation. The previous owner should have fixed it. But now you own it, so the responsibility falls on you.

Assessing the Problem

First, determine exactly what work was unpermitted. Get details from your home inspection report. Ask your real estate agent if they know the history. Some cities have online permit records where you can search your address and see what permits were pulled.

Assess the type of work. Was it electrical, plumbing, structural, or cosmetic? Cosmetic unpermitted work (painting, wallpaper, new flooring in a room) is less concerning than structural unpermitted work (removing a wall, adding a room) or systems work (electrical, plumbing, HVAC).

Assess your risk tolerance and financial situation. How concerned are you about the unpermitted work? Can you afford to remedy it if needed? Is it a safety issue or just a documentation issue?

Your Options

You have several options when you discover unpermitted work. The right choice depends on your situation.

Option one is to leave it as is and hope the city doesn’t discover it or require you to fix it. This is the cheapest option but carries risk. The city might discover it years later and order you to remediate it. Your home’s resale value is impacted because the unpermitted work must be disclosed.

Option two is to apply for a retroactive permit. You can submit plans showing the work that was done and request a permit for it now. The building department will review the plans and potentially inspect the work to verify it meets code. If it does, they’ll issue a permit for it. If it doesn’t, you’ll need to bring it up to code. The cost depends on the extent of non-compliance.

A retroactive permit legitimizes the work. Your future home buyers can see the permit, confirming the work was done properly. Your insurance is less likely to deny claims related to it.

Option three is to undo the work. Remove the added room, unfinish the basement, remove the kitchen renovation. This is expensive and disruptive, but it eliminates the problem. Few people choose this option.

Option four is to remediate the work to current code. Hire licensed contractors to inspect the unpermitted work and fix any code violations. This might involve having an electrician inspect and upgrade electrical systems, a plumber inspect and fix plumbing issues, or a structural engineer evaluate the structure. Once the work meets code, you can apply for a retroactive permit.

Getting a Retroactive Permit

To get a retroactive permit, contact your building department and explain that work was done without permits. Ask about the retroactive permit process. Most building departments have a procedure for this.

You’ll need to provide plans or photos documenting what was done. The building department will review them and determine whether the work meets code. This might require inspections where a building official examines the actual work.

If the work meets code, the building department will issue a retroactive permit. This process might take weeks or months, depending on your jurisdiction and the complexity of the work.

If the work doesn’t meet code, you have two options. You can fix the work to meet code and resubmit for the retroactive permit. Or you can negotiate with the building department about what remediation is required.

Costs of Remediation

The cost of remediation depends on what the building department requires. If the unpermitted work is cosmetic and doesn’t require permits, you might not need to do anything. If the work is structural or involves systems, you might need licensed contractors to inspect and potentially redo parts of it.

A retroactive permit process might cost a few hundred to a few thousand dollars, depending on the work and your jurisdiction.

If the work requires significant remediation to meet code, costs can be substantial. A bathroom that was added without proper ventilation might need to be gutted and redone. A bedroom addition without proper electrical circuits might need rewiring.

Get quotes from contractors for any remediation you anticipate before committing to purchasing the home. This helps you negotiate the purchase price knowing what fixes cost.

Insurance and Liability

Contact your homeowner’s insurance company about unpermitted work in your home. Some policies exclude coverage for unpermitted work. Others cover it but might exclude liability if the unpermitted work causes damage or injury.

Understanding your coverage is important. If you have unpermitted electrical work and an electrical fire occurs, your insurance might deny coverage if they discover the work was unpermitted.

Disclosure When You Sell

If you purchase a home with unpermitted work and later sell it, you must disclose the unpermitted work. Your real estate attorney or agent can advise on how to handle disclosure depending on your state’s requirements.

If you remediate the work and get a retroactive permit before you sell, you can disclose that the work was permitted retroactively. This is less concerning to buyers than undisclosed, unremediatedWork.

If you haven’t remediated it, you must disclose it and be prepared for buyers to demand remediation or walk away.

Prevention When You Buy

Before you buy a home, have a thorough home inspection. An inspector might identify unpermitted work. Check your city’s permit records to see what permits were pulled for the address. If major renovation work was done but no permits were pulled, that’s concerning.

Ask the seller directly whether any unpermitted work was done. Most sellers will be honest, though some won’t volunteer the information.

If you discover unpermitted work before closing, you can negotiate the purchase price down to account for remediation costs, or you can make remediation a condition of your purchase.

The Reality

Unpermitted work is a problem, but it’s manageable. If you have unpermitted work in a home you own, assess what it is and your options. Many cities are reasonable about retroactive permits, especially for work that was done properly but just wasn’t permitted. A retroactive permit legitimizes the work and removes the cloud of liability and non-disclosure.

If you’re buying a home with unpermitted work, understand the implications. Account for potential remediation costs in your offer. Get professional inspections of the unpermitted work. Make informed decisions about whether to remediate, seek a retroactive permit, or walk away from the home.

© The Whole Home Guide