Is non-permitted work required to be disclosed when purchasing a house?

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Is non-permitted work required to be disclosed when purchasing a house?

i recently purchased a house with a “finished basement”. I’m doing rehab work in the basement bathroom and my general contract pulled permits and we’re doing it by the book. When the inspector came by to check part of the work we were told we would have to remove all the basement dry wall and basically start over with the entire basement work because it was never permitted. Do we have any footing to regain any of the cost that will be incurred to bring the basement up to code and truly “finish” it?

Asked on August 18, 2011 Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The law in all states in this country is that the seller of real proeprty is to disclose all known facts about a property's condition that would materially affect the desirability of the property or amount paid by a buyer to all potential buyers.

Most states have transfer disclosure statements required to be completed and signed by the seller and given to the buyer before close of escrow to assist the buyer in evaluating whether he or she wishes to close escrow on the property as well as to do further investigation and inspections before close to safeguard the buyer's interests.

If the seller knew that the basement in the home sold you was not permitted and failed to disclose this material fact to you before close of escrow, the seller should be responsible for the cost of repair or the diminution in value at close of escrow of the property (the lesser of the two).

 


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