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

UPDATED: Aug 18, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 18, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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).


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption