Seller may have done work without permits and inspections

[DuWayne Jones]

I have a lead on a south Minneapolis property that is currently assessed as a 3BR house but in the past couple of years the owner has added 2 bedrooms with egress windows and a small kitchen in what was an unfinished basement.  This added 2 bedroom unit also has its own exterior door.  The problem is, I think this work was done without pulling the proper permits and having the required inspections.  As a 5BR house, this looks like a pretty good deal, and is in a great rental market.  How do I deal with this un-permitted work if I want to buy the house? I don't want to be responsible for any non-conforming work that will cost me money to correct after I buy it.  Do I require the current owner to clear it up with the city first? Should I make that a condition on my offer?  I'm excited to present an offer, but want to know how this should be handled.  Any advice is very appreciated.

[Marc Jolicoeur]

I would assume the seller will not want to deal with it or come clean with the city.  Therefore you should make the your offer accordingly.   Assume you will need to deal with the city to get it approved.  Review building codes and regulations and get a home inspector to give you his full report.  Check out the requirements for egress windows, number of exits, ceiling heights, ventilation, etc..  Assume you may have to spend money or make design changes to make it right.  

Then make your offer accordingly and explain your reasons for a low offer to the seller. If he balks, then ask if he would be willing to open permits and get the assessment from the building inspector.