Garage conversion w/out permit

[Nancy Dumon]

I am looking to buy this duplex in WA and found out during due diligence that the garages of both units were converted into bedrooms in the 90s. This conversion was done without proper permitting and approvals from the city and obviously the additional bedrooms are not showing in the county records. I called the city and they recommended to get the conversion inspected and make necessary changes/repairs to bring it up to code where needed to make the conversion permanent. Apparently I will not be exposed to penalties or fees since I was not the one who made the conversion back then. I’m not quite sure how to think about the situation. Should I go ahead and buy the duplex (assuming the seller agrees to a price reduction) or this is way too risky to pursue. What are your experiences with similar situations?