Should I Buy a Home in St. George with Unpermitted Work?

So, you’ve found a house you really like in St. George. It checks a lot of boxes: the layout’s great, the location’s ideal, and the backyard? Dreamy. But then inspector drops a bit of a bomb: some of the renovations were done without permits.

If you find yourself in this situation, should you back out of the sale? Renegotiate the price? Stay the course? Here's what you should know to make a confident decision and when the work is a dealbreaker.

Why is Unpermitted Work a Problem?

When a homeowner does major renovations like finishing a basement, adding a room, or even moving plumbing or electrical lines, they're typically supposed to pull permits. That means the city inspects the work to make sure it’s safe and up to code.

When the work was done without permits, a few issues might come up. The primary concern is that the work might not be up to code. This can create safety issues or future repair headaches. You should also know that the city might get involved. You might be responsible for retroactively getting permits, which can cost time and money, or worse, you might have to undo the work.

It can also mess with your financing and insurance. Some lenders may limit your loan or deny it altogether if unpermitted work is discovered. It can also make your home ineligible for insurance in some areas. If something goes wrong (say, a fire starts in an unpermitted room), your insurance company could refuse to pay out.

The Importance of an Inspection Contingency

Most of the time, unpermitted work might be discovered during a home inspection. In some cases, the sellers will disclose it (as they are legally required to), but if for some reason they don't you'll find out during the inspection. 

This is another reason that home inspection contingency is so important. By including this contingency in your offer, you'll be able to back out of the deal without forfeiting your earnest money. 

Is Unpermitted Work a Dealbreaker?

Not necessarily. Plenty of buyers purchase homes with unpermitted work; it just takes a bit more due diligence. Be prepared to protect yourself and make a wise investment with these tips:

• Get a solid inspection. Hire a licensed home inspector who can tell you if the work was at least done well and safely.
• Talk to the city. St. George’s building department can give you the information on whether the work can be permitted after the fact and what that process would entail. 
• Negotiate with the seller. If the unpermitted work might be a risk, ask for a price reduction to reflect the risk, or see if the seller is willing to fix it or pull permits themselves.
• Work with the right real estate agent and attorney. Having professionals in your corner makes a big difference when you’re navigating something like this. We can help you walk through the complicated process and make a decision you feel good about. 

Erika Rogers puts it this way: "Buying a home with unpermitted work isn’t a hard no, but it is a yellow light. You just need to slow down and look both ways."

Ready to learn more about homes for sale in St. George? We are here to help, so contact us any time.