I am curious as to who this issue was resolved. I had a home listed in Upper Macungie a few years ago that was in this same situation and since the basement was finished before the township required permits or a CO for resales the buyers determined this was not an issue. I heard a similar story about a home in Bethlehem Twsp. where the basement was obviously finished in the 1960's and when the CO inspection was done the inspector said they needed to provide egress or the basement could not be used for living space. It could be used for storage as it was but not for active living. This seemed to extreme and unenforceable to me.
So how was this resolved and did you buy the house?
Bob Berner ABR, CRS, GRI
Prudential Patt, White Real Estate
It is also likely that if proper permits where not acquired, the home improvement probably wasn't re-assessed for taxes. You could be liable for back taxes as well as any code violations if you purchase the home without resolution of these issues.
This is something you probably want to get resolved sooner rather than later..
Hope this helps. Best of luck to you.
Joe Sheehan, ABR, SRES
RE/MAX Professional Realty, Inc.
Terrence Charest, e-Pro
You should have your agent's broker advise you, or, chances are, he/she may suggest you contact a real estate attorney at this point.