Unpermitted new bathroom in turnkey property

[Danyel Tiefenbacher]

Hi guys!

My wife and I have a home under contract with a turnkey provider. This was a full remodel with new roof, all new mechanicals, complete bathroom gut. As part of the rehab a new bathroom was added.

Turns out that virtually no permits were pulled for any of the jobs. Not for the roofs, not for the electrical, plumbing repair and washer/dryer hook-up relocation, etc. The roof had all layers removed and one new layer of dimensional shingle installed.

I had the house inspected and the turnkey provider will fix a few minor issues before closing.

When I brought up the permits they offered to have the electrical work permitted, and the HVAC will be permitted when it goes in when the first tenant moves in. They are hesitant, however, to have the bath addition permitted, because they fear that the city will make them tear out the entire bathroom to inspect the plumbing.

Instead they offered to have a licensed plumber inspect the bathroom and certify in writing that the bathroom is code compliant. In addition the provider is extending the full home warranty to 60 days.

Alternatively the turnkey provider offered to refund our earnest money, if we are not satisfied with this solution.

We are generally happy with the quality of the job and like this house as a good investment.

Are we overthinking the un-permitted bathroom issue? What’s the worst-case scenario here?

Thank you for your opinion!