Purchasing a property that didnt pull permits?

[Michael Mackney]

Hey everyone. I am in the process of pursuing a deal that someone got burned on by a previous GC. The seller had this property down to the studs with  all the electrical redone and dry wall was put up. He did not get any further in renovations because the GC skipped town. He is now looking to minimize his losses and sell.

My question is, how should I approach the situation with no permits pulled prior to the seller changing all of the electric? I have not had to pull permits before so I am unfamiliar with the process especially after the dry wall has been put up. Last thing I want is this to become my issue later on if the property becomes mine. 

Let me know your thoughts. Thanks! 

[Andy Sabisch]

The strictness of permit enforcement varies from town to town so your situation may vary.  Some areas are lax and others will nit pick you to death . . . we have seen and experienced both.

Not sure how the previous owner found a GC that did major renovations without pulling a permit but skipping town explains it.  Lesson learned for you to ensure a GC will pull permits.  We have had quotes for work where the GC gave us two prices  - one with and one without permits and for us, if he is willing to go the no permit route we keeping looking.  Not worth the potential hassle with the town or after the sale when an issue comes up and you did not pull permits.

As Elliot said, reach out to the town permitting official and explain the situation.  I would not be specific with the address as the city can red tag the property and then you and the seller are screwed.  Say you are looking at properties to renovate and if this issue comes up, what is the way to resolve it.

Either way it will cost you to correct even if you get another GC / contractor to come in as they hate to pick up someone else's work not knowing what was or was not done.