Have you recently received an offer on your California home only to have the deal fall through due to unpermitted work?
This usually happens during a buyer’s home inspection when the inspector discovers work that isn’t up to code or hasn’t been signed off by a licensed home inspector.
You can sell a home with unpermitted work in California, but the process takes longer and is more complicated than usual. Read on to discover the implications of selling a home with this particular problem.
California has strict building codes to ensure the safety and well-being of homebuyers. These laws extend to home improvements, too.
When you perform significant upgrades to your California home, you must get a building permit before you commence. Once you’ve completed the renovation, a certified home inspector must confirm that the work complies with the relevant building code.
Unpermitted work is any project you take on that legally requires a permit from your local city or county building department, but for which you never actually pulled a permit. California’s requirements are some of the nation’s strictest, and the list of what needs a permit is extensive.
Even smaller projects that seem simple—like adding a fence, putting in a new window, or constructing a backyard deck—can require approval. Permits are almost always necessary for substantial changes such as:
On the other hand, truly minor repairs and cosmetic improvements—like painting, installing new flooring, or minor electrical fixes—generally do not require a permit. Still, it’s best to check with your local building department before starting any project, as rules can vary from city to city and county to county.
In short, if your project alters the structure, safety, or footprint of your home, California law likely requires that you obtain a permit and schedule inspections to ensure everything meets code.
A permit is considered ‘open’ until an inspector approves the work. Each city has different time limits for this, depending on the work in question.
Open permits usually result from one of the following issues:
Sometimes the seller might be unaware of these problems until they try to sell their home.
If you’re unsure whether some improvements or additions to your property were properly permitted, there are a few practical steps you can take to get clarity. Chasing down the permitting status of that surprise third bathroom or the “bonus” sunroom doesn’t have to be a wild goose chase.
Start by tracking down your home’s original blueprints or building plans. Sometimes, these are tucked away in your closing documents. If they’re nowhere to be found, look to your local city or county records office—most jurisdictions will have archives you can search through. Even your homeowners association or the builder (if the home is newer) might have a copy on hand.
Once you have the original plans, compare them to your current home. Any rooms, features, or structural changes that aren’t reflected in the original documents might signal unpermitted work.
Your local government’s building department keeps a paper (or digital) trail for all permitted work. Visit their office in person, give them a call, or, in many cases, check their online portal. Most cities and counties in California (like Los Angeles or San Diego) allow you to look up permits by address for free.
Go through the records and compare the list of completed, permitted projects against what actually exists in your home. If you see a new deck or rebuilt garage that doesn’t correspond to any permit on file, you might be looking at unpermitted work.
Still scratching your head? Try reaching out to previous owners, your real estate agent, or—even better—hire a licensed home inspector. These pros can often identify work that appears newer or doesn’t match the style and construction quality of the original house. They’ll have a sharp eye for updates that might have skirted the rules.
Sometimes, clues are right under your nose. Look for differences in construction materials, mismatched paint, or rooms that seem “tacked on.” Oddities in your home’s utility layout—like a bathroom with questionable plumbing or electrical work—can also tip you off.
Doing your homework now helps prevent surprises during a sale and puts you in the driver’s seat when addressing any open permit or code concerns.
If you’re aware of any permitting issues with your home and don’t want to resolve them, you can sell it as-is. You must reveal any permitting issues in the sellers’ disclosure, so the buyer has the information they need to decide whether they want to proceed with the sale or not.
Inevitably, unpermitted work will decrease your property value, and buyers will likely have difficulty convincing a lender to give them a mortgage.
To avoid this, you can obtain a permit for completed projects from your city retroactively. This can be a costly affair and may lead to fines for a code violation.
It usually involves hiring a contractor to bring the improvement up to code so a building inspector can close the permit.
Failure to disclose unpermitted work or open permits when selling your home is fraud. As such, the buyer could sue you for all the costs involved in rectifying any issues with the property.
It can be challenging to find buyers who are willing to take on the time and effort to bring a house up to code.
If you’re considering addressing unpermitted work before selling your California home, both time and cost come into play—often more than sellers initially expect.
First, there’s the expense of getting things up to code. Typically, you’ll need to hire a licensed contractor to inspect any unpermitted work and provide an estimate. Sometimes, the fixes are straightforward, such as minor modifications or paperwork. Other times, the city might require substantial changes, like opening walls or even rebuilding sections, to ensure everything meets current California Building Standards. Costs can range from a few hundred dollars for minor infractions to several thousand—or more—if major reconstruction is necessary.
Retroactive permits aren’t free, either. The city will charge permit fees, which reflect the size and scope of the project. If the work was done by a previous owner, some jurisdictions may waive penalties, but you should be prepared for the possibility of additional charges and fines. Ask your local building department for specifics so there are no surprises.
Timing is another crucial factor. Once you apply for a permit after the fact, expect inspections and subsequent repairs to add anywhere from a few weeks up to several months to your timeline, depending on the complexity of the work. For example, correcting something like a finished basement or an added bathroom may require both structural and safety evaluations, which can substantially extend the timeframe. Since most buyers want to close in 45 days or less, these delays could impact your ability to sell quickly.
In summary:
Addressing unpermitted work before listing can preserve your home’s value and reduce headaches at closing—but make sure the additional time and cost fit with your goals and timeline.
If you’d rather resolve the permitting issue before listing your home, you can apply for a retroactive permit with your city or county. This process allows you to legitimize improvements after they’ve already been completed, but it does require a few important steps.
First, it’s wise to hire a qualified contractor to assess the work that was done. They can estimate the costs to bring everything up to current building codes and let you know which areas might need upgrades or corrections.
Once you’re ready, you’ll submit your application for a permit. Afterward, a city inspector will visit your property to examine the work. Depending on their findings, you might face anything from simply opening a wall for a better look, to making more substantial changes if the work doesn’t meet code. The extent of the correction really depends on the quality of the original work.
If the unpermitted improvement was done by a previous owner, some municipalities in California may be understanding about your situation. You might avoid hefty penalties, and occasionally, you could get a bit more flexibility in the timeline required to complete the necessary updates.
City or county inspectors are central to the process of bringing unpermitted work into compliance. Their job is to evaluate the work and determine if it aligns with California’s building codes. This could mean a straightforward inspection, like a quick look behind a wall, or—if things aren’t up to snuff—it might require more extensive corrections, such as partial demolition or rebuilding areas entirely.
Before you even head down to city hall for permits, it’s often a wise move to hire a licensed contractor to assess the situation. An experienced contractor can help you understand what changes may be needed to meet today’s codes, and offer an estimate for correcting any issues. They’ll know what is already compliant, what needs improvement, and what’s liable to raise red flags for an inspector. This initial step can save you both time and surprises in the permitting process.
Buyers may also wonder what options they have if unpermitted work by a contractor leads to damage after the sale. In California, if work was done improperly and ends up causing harm to the property—even if the buyer was made aware of the unpermitted nature—there could still be grounds for legal action against the contractor responsible.
For example, if a contractor performed unpermitted electrical work that later results in a fire, the homeowner may be able to pursue damages against that contractor. The key factor here is whether the work failed to meet current code requirements and directly resulted in damage. In these situations, buyers often consult real estate attorneys to evaluate potential claims and navigate their options for recourse.
Securing a building permit is a must if you’re planning anything from a kitchen remodel to a new deck in California. While each city or county may have its quirks, the basic steps look similar across the board:
Consult Your Local Building Department: Before you swing a hammer, start by checking with your city or county’s building office. Explain what project you have in mind—they’ll let you know which permits are necessary (sometimes, you’ll need separate ones for plumbing, electrical, or structural work).
Complete the Permit Application: Fill out the application form provided by your local agency. Be thorough—mistakes can slow things down. Attach any required plans, diagrams, or blueprints that show exactly what you’re planning.
Submit the Application and Pay Fees: Hand in your paperwork, along with any necessary supporting documents, and pay the required application fee. For straightforward projects, you might get approval fairly quickly. Larger or more complex plans could require a longer review.
Display the Permit: Once approved, you’ll receive a physical permit. California law requires you to post it somewhere visible at your property before you get to work.
Schedule Inspections: At different points in your project (and certainly after work wraps up), a city or county inspector will visit to make sure everything matches your plans and meets code requirements. If they spot an issue, you’ll need to fix it and schedule another inspection.
Close Out the Permit: Once the final inspection is complete and the work is approved, the permit is “closed”—you can remove the posted document and enjoy peace of mind.
Following these steps from the start helps ensure that your home improvements are up to code, avoid headaches during a future sale, and keep you on the right side of California law.
So, what’s your best move if your home has unpermitted work? The answer really depends on your priorities—time, money, and appetite for hassle.
Obtaining Permits: If you’re not in a rush and are willing to invest the time and up-front costs, addressing unpermitted work before listing could yield the highest return. This usually means pulling retroactive permits, hiring licensed contractors, and possibly undoing or redoing some work to satisfy current codes. While this route requires patience (not to mention dealing with city inspectors), it can attract more buyers and avoid heavy discounts.
Accepting a Price Reduction: On the other hand, if you’d rather skip the permitting headaches, you could simply adjust your asking price to reflect the risk the buyer is assuming. Some buyers—especially investors or contractors—may still be interested if the price is right, but expect tougher negotiations and a smaller pool of potential offers.
Selling As-Is: For those who want the fastest and simplest escape hatch, selling as-is is an option. You’ll need to be fully transparent in your disclosures and prepare for a lower sale price, but you avoid the lengthy process of bringing everything up to code. Selling as-is can particularly appeal to flippers or cash buyers who are less concerned with immediate move-in condition.
Every situation is different, so it pays to consult with a reputable local real estate agent who knows how these issues play out in your market. With the right guidance, you can weigh your options and choose the path that best suits your goals.
If you’ve discovered unpermitted work or open permits on your California home, it’s important to weigh your options carefully before putting your property on the market. Here are the key factors you’ll need to consider:
Address the Permitting Now or Later?
Decide if you’ll tackle any unpermitted work yourself before listing. This might involve pulling the proper permits and having the completed work inspected and approved. Though this process often takes longer and may require some additional expense, it can make your home more appealing—and potentially boost your asking price.
Disclose or Repair?
If correcting the issues isn’t practical for your situation (due to time or budget constraints), you’ll need to be prepared to fully disclose all unpermitted work to potential buyers. Transparency is required by California law, and it protects you from future liability.
Anticipate the Effects on Price and Timeline
Homes with open permits or unpermitted work generally take longer to sell. Buyers may request a price reduction to offset the risk and headache of handling the permits themselves. Be realistic about how this could affect your bottom line.
Consider Selling As-Is
In some cases, it may be best to list the property “as-is” and accept a lower offer from a cash buyer or investor who’s comfortable with the permitting issues. This can be a faster solution, sparing you the hassle—but you may get less than market value.
Before you take the plunge, it’s wise to consult a reputable local real estate agent or legal expert familiar with California’s permitting landscape. Their insight can help you chart the smoothest path to a successful sale.
It’s best to make a clear decision about how you’ll handle any unpermitted work or open permits before listing your home for sale. Determining your approach upfront—whether you’ll address the issues prior to listing or market the home as-is—can save headaches down the line.
If your goal is a quicker sale or you’re working with a strict timeline, you may choose to sell the property as-is, fully disclosing all permitting issues to prospective buyers. This route can mean accepting a lower sale price, but it moves the process along more swiftly and provides clarity for both sides.
On the other hand, if you have flexibility with your timeline and room in your budget, taking steps to obtain retroactive permits or resolve open permits before listing can be beneficial. This typically leads to:
Ultimately, your choice depends on your priorities—speed versus sale price, and convenience versus value. Weighing these factors before listing allows you to proceed with a clear strategy and helps avoid obstacles during escrow.
Yes, California law requires sellers to disclose any unpermitted work they’re aware of, even if that work was completed by a prior owner. The state’s disclosure requirements are broad and leave little room for omission—if you know about any improvements, additions, or renovations that weren’t properly permitted, you need to detail this in your seller’s disclosure documents.
It doesn’t matter whether the unpermitted work happened while you owned the home or before. If you knowingly fail to mention it, you risk legal consequences; buyers have successfully taken sellers to court for failing to disclose unpermitted work—even when sellers thought prior ownership gave them a free pass. Full transparency protects you from lawsuits and ensures the transaction proceeds smoothly.
If you, as the seller, fully disclose the existence of any unpermitted work or open permits during the sale process, the responsibility for addressing those issues shifts to the buyer after closing. Once the transaction is complete and all disclosures are documented, the new homeowner becomes accountable for bringing the property up to code if they choose—or for dealing with any potential consequences linked to the unpermitted work.
This is why transparency in your seller’s disclosure is so crucial: it gives the buyer a clear understanding of what they’re purchasing and outlines what tasks—if any—they’ll be taking on after the sale.
The effect of unpermitted work on your home sale often hinges on the current state of the real estate market in your area. In a seller’s market—where buyers are competing for limited inventory—people may be more willing to overlook permitting issues, and you might not see a significant dip in your home’s value or buyer interest. There’s simply less leverage for buyers to negotiate major concessions over unpermitted work when demand is high.
Conversely, if you’re selling in a buyer’s market, expect those same permitting problems to put a bigger dent in your sale. Buyers have more options and bargaining power. They’ll be quick to use permitting issues as leverage to demand a lower price, ask for repairs, or potentially walk away altogether.
In short, the hotter the market, the less buyers will fuss about unpermitted work. In a slower market, those details matter much more—and can limit your pool of interested, qualified buyers.
Unpermitted work doesn’t just create headaches during the selling process—it can also put your homeowners insurance at risk. Let’s say you installed a new electrical panel or finished a basement without the proper permits. If that work wasn’t inspected or brought up to code, your insurance company may view your home as a higher risk.
This can lead to a few potential problems:
In short, unpermitted work gives insurance companies a reason to hesitate or pull back on your policy—making your home even harder to sell to a cautious buyer.
Apart from the effort and cost involved in buying a home with unpermitted work, safety concerns can affect buyer decisions.
Buyers are hesitant to commit to a house that doesn’t comply with current building codes due to concerns for the safety of their family. After all, these standards exist to ensure that buildings are habitable and safe.
In this light, buyers might regard you as untrustworthy if you’re selling a home with unpermitted work.
Lenders always insist on home inspections before granting a mortgage to any buyer, and homes with unpermitted work or open permits won’t pass these inspections. That means you won’t be able to sell your home to a traditional buyer until you’ve rectified these permitting issues.
Private cash buyers might consider buying a home as-is with unpermitted work, but you can expect them to make you a low offer to make up for their anticipated costs.
Your final option is to sell your home to cash home buyers in California. These property investors buy homes in any condition, repair them, and sell them at a profit.
They don’t need a mortgage and, thus, don’t require a home inspection.
The major difference between selling your home to a cash buyer instead of via traditional means is time. Cash home buyers have the resources to take your unwanted home off your hands immediately and deal with the red tape later.
When you sell your home via conventional means, you can expect to encounter long delays and much red tape while trying to bring your permitting paperwork up to date.
In some cases, you might need to hire a contractor to demolish the unpermitted renovations and rebuild them. This will cost you a lot of money, even if you do manage to avoid paying any fines.
If you decide to sell the home as-is, you can expect to wait a long time before you find someone willing to buy a home with unpermitted work, and you can expect several rounds of negotiations before you settle on a price.
When you sell a home to a cash home buyer, the process is simple, transparent, and quick. They make an offer on your home, and if you’re amenable, they can close in just a few days.
You’ll still get an offer that is below market value for your home, but you’ll save on the time and cost involved in resolving permitting issues before the sale.
Premier Property Buyers is a reputable cash investor willing to offer you a hassle-free sales process. We can help you achieve a quick sale by avoiding the need for repairs, permits, and inspections.
Our fast cash offers and flexible closing dates ensure you experience a smooth sales process with no stress or worries. Find out more about how it works or call us at (714) 475-7526 to discuss your needs and receive an off
While attempting to sell a house with open permits or unpermitted work in California, you’re bound to come across significant obstacles. These include hesitant buyers, reduced property value, extra costs, and potential legal challenges.
If you need to sell your house fast in California and you’re encountering any of these difficulties, there is a solution.
Premier Property Buyers offers a reliable and stress-free alternative to traditional sales. Reach out today for a no-obligation offer on your California home.
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