Good to get this permit issue out of the way now,,hopefully you didn't wait months for the short sale to be approved & then only now are you checking into this. Talk to the owner, talk to the city, get the info you need now about these unpermitted rooms, talk to your own lender too about their guidelines, if any, for this situation.
I also strongly suggest you have your lender order an appraisal for your own loan now, talk to the appraiser about the unpermitted rooms & how it affects the appraisal, submit all that info including the actual report to the short selling lender. It will help you to get a lower price.
There are several things to be concerned about:
1. What are the dates (commencement and completion) of the construction? This information gives you a good idea of what codes the addition was built under, in the very best of circumstances.
2. Was the work done by a licensed contractor?
3. Is there a set of plans to support the remodel, drawn by an architect or engineer? Does the completed work match the plans? (see #4 and 5 next)
4. Does the physical structure of the remodel (walls, windows, ceiling heights, etc) conform to current codes? Was anything necessary for code) removed, altered or diminished to create the new bath? (Such as a garage or a setback)
5. Do the underlying systems (plumbing, heating, electrical, drainage) conform to current codes?
Once you have answered the above, in order to obtain permits, you must do some or all of the following:
1. You will need a current set of plans to be approved by your local building and safety. They will need to be drawn and submitted by an authority recognized by your building and safety department.
2. You'll need to pay any necessary fees, local taxes, and fines in order to obtain your permit.
3. You will then have a series of inspections based on the scope of the work necessary to bring your project to current code.
4. You may need to open walls, remove fixtures, etc. to assure the inspector that the work done is to code.
The risk in accepting the property without a permit? If you, or anyone you sell the property to down the road, decide to add on or remodel, and the inspector discovers the un-permitted work, you may be asked to bring it to code as part of the scope of the work, before they will issue a certificate of occupancy on any future remodel.
ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
If the room is unpermitted 2 things to really consider:
1. there will be no value added to the unpermitted space when an appraisal is done
2. If the city finds outy that there is an unprmitted space. they may make you tear it down or make it legal.
Its is your choice, definatley your agent should disclose the pros an cons. Some sellers probably boght the house like that, and nothings has happend.
Again go to the city records and they sould be able to help you ..
OBJECTIVE REAL ESTATE
6399 WILSHIRE BLVD SUITE 908
LOS ANGELES, CA, 90048
It all depends however you may have to pay if the seller won't haggle.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
What does the approval letter say? If the short sale lender won't pay for seller's taxes or liens, the sellers should be the first to be asked for contributions to pay their own taxes and the other shortfall. And what other liens are there? Unpaid HOA dues? Unpaid utilities? Will these liens be cleared at escrow?
You'd better take a close look at the estimated HUD statement to see the shortfall after the short sale lender is paid off....Are you paying below market? Do you have funds to contribute to the shortfall?
Is it worth it to you? What does your gut tell you is the right and smart thing to do?
Listen to your agent. Remember that the agent is looking out for your interests. You being a first time home buyer, you need all the guidance and caution to make your first experience as hassle free and as smooth as possible.