Selling a house with unpermitted work can really complicate things. This type of work can affect your Houston property’s market value, bring about legal challenges, and frighten potential buyers. Fortunately, there are ways to navigate this and complete the sale.
This guide explains what constitutes unpermitted work, how it might affect your sale, and how to handle the situation. Whether you decide to fix the problems or sell the house “as is,” you can find a solution that works for you.
What is unpermitted work?
Construction or renovations done without securing the proper permits from city authorities can qualify as unpermitted work. Permits are generally required for projects like:
- Building additions or extensions
- Upgrading electrical systems or plumbing
- Replacing HVAC systems or home duct work
- Adding features such as gazebos or swimming pools
Permits play a critical role in ensuring that work is safe and compliant. Without them, you risk:
- Safety hazards: Substandard work on electrical wiring or plumbing can lead to injury or property damage.
- Fines: Local code enforcement departments often financially penalize homeowners for unauthorized work.
- Insurance complications: Damage from unpermitted work may not be covered, leaving you vulnerable.
Permits also help enforce zoning laws and building codes. Without them, a homeowner could accidentally block off emergency vehicle access to their property or build a fence that extends into a neighbor’s yard.
Unpermitted work can negatively impact your home’s value. Buyers may hesitate, worried about the cost or effort required to address the issue. Legal troubles may arise as well, especially if the work inconveniences or injures someone.
Understanding code violations
The Houston Permitting Center, which issues most of the city’s permits, posts the latest code information online. Nearby cities like Galveston and Katy make code information available online as well.
Many local building codes, including those used in the Houston area, are based on model building codes like the 2021 International Residential Code and the 2023 National Electric Code. These codes are often amended by the city in question.
As building codes evolve, staying compliant can become a challenge for homeowners. For example, the rules for anchoring a large deck area in your backyard might change to meet current safety standards. An older deck therefore might not be up to code. Work completed under previous codes may sometimes be “grandfathered in,” but unpermitted work usually cannot.
Homeowners associations (HOAs) have the ability to set and enforce rules for homeowners as well. Your local HOA might choose to dictate what exterior paint colors you can use, require a specific type of flagpole installation if you choose to fly a large flag, and make other rules. Before you invest in work, finding out what your HOA will allow is a wise decision.
Common unpermitted work and code violations
In Houston, unpermitted work can cause significant headaches, especially during a home sale. Common violations include:
- Unsafe expansions to your home
- Improper electrical repairs or faulty plumbing work
- A roof replacement that doesn’t meet local codes
- Adding a garage or shed that encroaches on a neighbor’s property
- Unauthorized updates to homes in historic districts
Is it legal to sell a house with unpermitted work?
In Texas, you can legally sell a house with unpermitted work, as long as you disclose the details to the buyer. Failure to disclose may result in legal action.
How unpermitted work can affect your home sale
Unpermitted work can discourage potential buyers, as they may need to fix the issue or deal with its consequences during future sales. It also complicates inspections and appraisals.
Most lenders are very wary of unpermitted work and will often choose to not approve a home loan where this kind of work has taken place. They may also penalize the buyer if they do not disclose unpermitted work at the time of purchase.
Insurance companies may deny claims linked to unpermitted work. The Gulf Coast is prone to hurricanes. If you cut and install new windows that weren’t permitted and up to code, and those windows get destroyed in a storm, there is a chance that insurance won’t cover the damage. Unpermitted work can also lead the insurer to cancel your coverage completely.
What are your options if you’re selling a house with unpermitted work?
If your house has unpermitted work, you can:
- Resolve the issue and secure permits: Fixing unpermitted work and obtaining permits is the most direct solution. Minor issues, like installing code-compliant plumbing connectors, can be affordable, while larger projects, such as rebuilding a large fence, may require a more significant investment.
- Obtain a retroactive permit: When work was properly completed but not permitted, applying for a retroactive permit can resolve the issue. An inspector will review the work and either approve it or request updates.
- Sell “as is”: Selling your house “as is” means leaving the unpermitted work for the next owner to handle. Disclosure is mandatory, but effective marketing can still attract buyers. For a faster sale, consider selling to an off-market buyer in Houston. Keep in mind that “as is” homes often fetch lower prices than fully updated ones.
- Credit the buyer: Offering a credit at closing is another option, allowing the buyer to fix the unpermitted work themselves. This is ideal if you have funds available but don’t want to oversee the repairs.
Common mistakes when selling a house with unpermitted work
If you decide to move forward with a Houston property sale and have unpermitted work, here are some pitfalls to watch out for:
- Hiding unpermitted work from buyers: This can backfire with legal consequences. Always disclose to avoid complications.
- Overlooking unpermitted renovations during sale prep: Any unpermitted work done while selling may require disclosure and could harm your sale during inspections.
- Underestimating resolution costs: Major repairs can be time-consuming and expensive. Budget accordingly before listing.
- Avoiding professional insights: Get expert advice to understand whether unpermitted work will significantly affect your home’s marketability.
We Buy Ugly Houses® buys properties with unpermitted work.
If you’re looking for a fast property sale and have unpermitted work and code violations, reach out to We Buy Ugly Houses® in Houston. We’re interested in buying a range of properties, including duplexes, condos, and single-family homes. We also buy houses in surrounding areas. We buy “as is,” which means no repairs are needed.
When the house you’re trying to sell has unpermitted work, We Buy Ugly Houses is the home buyer you can turn to!
This blog is for informational purposes only and should not be considered legal advice.
