Remodeling: Do I Really Need a Permit?

October 15th, 2011

Remodeling projects can be exciting and stressful at the same time, and there are usually lots of different things to plan and coordinate. Costs and timing are usually big factors as well. Many homeowners either overlook local permit requirements or choose to ignore them to avoid costs, speed up the project, or for various other reasons. In the long run though, this could have expensive consequences.

Building codes are continually evolving as new safety concerns are raised or better products are developed. In addition, building code requirements vary from area to area. Even a professional, licensed contractor may not be aware of all the current, applicable codes in your area. The inspections involved in the permit process will help ensure that all work done meets current building codes.

Many professional contractors will either help you with permit paperwork and inspections, or will take care of it entirely (usually for a fee). If a contractor argues with you about getting a permit or tries to convince you one is not needed, it could be a red flag that they don't have required licenses or they don't want their work to be inspected.

Sometimes it is obvious that a permit is required, such as for finishing a basement or putting in an addition. In other cases it's not as obvious, such as adding an electrical outlet or light switch. Before starting (or even getting bids for) any remodeling project, it's a good idea to ask your municipality if a permit would be required.

When adding livable square footage (such as finishing a basement), some homeowners forgo the permit process in the hopes of avoiding a tax increase. However, if the illegal work is discovered, it could have expensive consequences such as fines and penalties. The homeowner could even be required to tear down the project and start over. This could end up costing much more than the higher taxes would have. In addition, some municipalities offer remodeling exemptions so that the increase in taxes is delayed by several years.

Often, un-permitted remodeling work is discovered during the home sale process, which can result in problems with the sale and/or serious legal issues. Depending on the specific issues or violations, the buyer's lender may refuse to lend on the property, the title company may not be able to insure it, or the buyer may simply refuse to buy it. If the the homeowner does not disclose the lack of a permit and it is not discovered until after closing, it can even result in a lawsuit.

Despite any cost or inconvenience involved in getting a permit, homeowners should NEVER overlook or ignore these requirements. The consequences of doing so can far outweigh any benefits. In addition, the building codes really are there to ensure work is done properly and to protect homeowners from potential safety issues.

For more information about this topic, you can contact your local municipality - contact information can be found in our Community Resources section.

Source: http://realtormag.realtor.org/home-and-design/feature/article/2011/09/remodeling-don-t-forget-permit

This information is not intended as legal advice, nor is it an exhaustive guide regarding this subject. For legal advice, please consult an attorney. No warranty or representation, express or implied, is made as to the accuracy of the information contained herein and the same is presented subject to errors and omissions.