The Importance of Permits: What Happens When a Home Has Unpermitted Work?

As a realtor, I often encounter unique situations during the home buying process that can raise red flags for my clients. Recently, I worked with a family looking to purchase what seemed to be the perfect single-family home in Loudoun County, VA. However, as I was preparing to submit an offer, I discovered that the number of bathrooms in the house didn’t match the county’s public records. After further inquiry, I learned that the basement had been finished, but the listing agent couldn’t provide an exact year, suggesting it had been that way for a long time. This discrepancy immediately raised concerns about whether the basement was finished with the necessary permits.

Please note that I am not an attorney, and the following should not be considered legal advice. The information I’m sharing is based on my experience as a real estate professional. I always recommend consulting with a qualified attorney for any legal questions or concerns related to purchasing a home with unpermitted work. With that said, here are some potential effects that buying a house with unpermitted work might have:

1. Violation of County Codes

When a homeowner finishes a space like a basement without obtaining the required permits, they risk violating county building codes. In Loudoun County, this means the work does not comply with local regulations. If the county becomes aware of the unpermitted work, they could impose fines or require the current homeowner to bring the work up to code. This could result in expensive renovations or legal complications that the buyer would have to deal with after purchasing the home.

2. Complications During Future Sale

When it comes time to sell, unpermitted work can become a major obstacle. Buyers, their agents, and inspectors will likely ask for proof of permits and compliance with building codes. If the basement isn’t up to code, it could either reduce the value of the home or become a sticking point in negotiations, where the buyer requests the seller to remedy the situation before closing. In the worst case, the deal could even fall through.

3. Difficulty with Homeowners Insurance Claims

Unpermitted work can also complicate homeowners insurance claims. If a problem arises in the basement, such as water damage, electrical fires, or structural issues, the insurance company may deny the claim if they discover that the basement was finished without the proper permits. This could leave the homeowner responsible for repairs and related costs out of pocket.

4. Potential Safety Hazards

Permits and inspections are in place for a reason—safety. Without the proper inspections, there’s no guarantee that the work was completed safely. Issues like faulty wiring, improper plumbing, or lack of structural integrity could pose risks to your family. Electrical fires, flooding, or even long-term structural damage are just a few examples of what could go wrong.

5. Challenges with Future Renovations

If the homeowner decides to further remodel or renovate the basement—or any part of the house—unpermitted work can create complications. When they apply for new permits, the county may flag the unpermitted work, requiring the homeowner to address it before approving the new renovation project. This could result in delays and additional costs.

6. Retroactive Permitting: A Potential Solution

While the situation might seem daunting, there is a solution. Homeowners can apply for a retroactive permit. This involves bringing a county inspector to review the work that was done. If any code violations are found, the homeowner will need to make the necessary adjustments to bring the work up to code. While this option can be costly, it ensures that the work is legal and safe.

Buying a home is one of the biggest financial decisions most people make, and it’s important to be aware of all potential risks—especially when it comes to unpermitted work. As your realtor, my goal is to provide you with the knowledge you need to make informed decisions, and I always recommend consulting a legal expert for more specific advice. At the end of the day, it’s better to address these issues upfront than to deal with costly complications later on.

If you’re in a similar situation, feel free to reach out to me. I’m here to guide you every step of the way and ensure that your home purchase is a smooth and informed process.