You have to ask yourself if you are willing to take over responsibility for work with no permits. Most of the time sellers will fill out a seller\u2019s disclosure form accurately answering all questions about the home that they know of. Any unpermitted work must be disclosed to buyers when you decide to sell a house, which in turn means if you choose to buy the house, you will need to tell future buyers about the unpermitted work.<\/p>\n

So can you be penalized for unpermitted work?<\/h3>\n

In most cases no, but from time to time, city inspectors can penalize homeowners for unpermitted work, even if you are the second owner, and not the original perpetrator. This might consist in hiring contractors to make changes if the work does not meet code.<\/p>\n

Something else to consider is that your homeowner’s policy may not cover any unpermitted additions. It\u2019s important to talk to your insurance agent before agreeing to buy the house.<\/p>\n

Even more uncommon is that mortgage companies may require an immediate loan repayment due to unpermitted additions or major remodels,<\/strong> which sounds very scary, but again is very rare.<\/p>\n