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Updated over 9 years ago on . Most recent reply

User Stats

34
Posts
8
Votes
Jarrad Henry
  • Investor
  • Union City, CA
8
Votes |
34
Posts

Buying house with unpermitted garage conversion Antioch, CA

Jarrad Henry
  • Investor
  • Union City, CA
Posted

Yay! My second post. (Am I a real estate investor yet?) :)

I have been getting a various opinions regarding a stellar property in Antioch CA. 

Has a nice floor plan but the garage was converted to a larger kitchen. In addition to that a permit was never pulled for the development. I haven't had any inspections done but only learned that it was unpermitted after my offer was accepted.

My realtor seems to think that it is no big issue. "More than 95%" of homes have unpermitted development. My concern is the liability.

Does a renter not have to pay rent if the a space is unpermitted? Can the city of Antioch force me to do an expensive demolition? Should I just walk away from the property?

Any help is appreciated. You guys are awesome.

Most Popular Reply

User Stats

304
Posts
112
Votes
Stuart Birdsong
  • Investor
  • Fort Collins, CO
112
Votes |
304
Posts
Stuart Birdsong
  • Investor
  • Fort Collins, CO
Replied
@Jarrad Henry:

Jarrad,

    Despite what other people are saying, you should be very cautious about purchasing a property with an un-permitted addition. Once you close on the property you have no recourse against the seller if you are required by the city to make any changes that bring it up to code. This can get very expensive, and ultimately on your dime. In addition, you should fire your Realtor for saying that 95% of properties have additions without a permit. From an outsiders' perspective, They seem more interested in their commission than they are in your potential liabilities following closing.  I am not telling you to walk away from the deal, but rather to proceed with caution and make sure you understand all that you are taking on. Once you own the property you own all the good and bad that come with it. These are just my opinions. Best of luck to you!

Stuart

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