Question on permits

[robertwells]

Hello, It has been some time since I have done an FHA and referred to handbook on this topic, but did not see anything...I am handling a purchase transaction whereby the listing agent, via his company is the owner of the property and there has been some extensive updating and replacing of systems/features...This work reportedly included new roof, HVAC, electrical panel, windows, recessed lights. I inquired about permits, and he noted the electrical panel was the only item that went through permit process, but he did note he utilized a licensed electrician for electrical and licensed HVAC contractor (but I did not get any info.on who performed roof replacement, but not permitted apparently). I dont know if buyer's are getting a home inspection and obvisoulsy I am not a code/construction expert, but does anyone know how HUD likes to see such issues/situations addressed (ie. just detail all info, or make subject to something)? Thanks so much! Bob

 

[J Grant]

Far as I know FHA does not require permits.

Just mention the permits you do know about, electrical etc and that the other work was finished in a workmanlike manner

 

[RCA]

Read this:

https://www.walnut-creek.org/home/showpublisheddocument/4596/635695418423930000

- which is probably similar to other cities.

In California, you need a permit to replace a roof. Whether you need a licensed contractor depends on the local building code and the type of roof. Recessed lights probably require some wiring - and no doubt a licensed contractor should be used for that - but I am not sure without knowing the details.

Buildfax.com is a good place to check for permits. But, you can try the city building department. Some are more advanced than others in maintaining records, especially with online access. It is usually worth it to take the time to call up a planner or someone in the Building Department.

 

[Dublin ohio]

Have you checked with the permitting authority instead of taking the word of the agent. Not sure how it is in CA. But around here the licensed contractor takes out the permits.

 

[J Grant]

Imo, there is a difference between what a building department or code enforcement requires a person to do , and our requirements or obligations are, to our client, or intended user in an appraisal.

We should be making disclosures: Only known permit is electrical. The other work was done per owner without permits but work was observed to be finished in a workmanlike manner. Then the client or anyone else knows and do with the information what they want.

We can add a comment in the addendum that parties are recommended to get their own inspections and permit searches for their purpose and that the appraisal was done for valuation purposes.

 

[Terrel L. Shields]

I guess my first question is what permits are even required in that particular area. The only "permits" in much of the area I work are either a small fee or septic permits and only then on new construction. I don't need (nor did I get) permits to put a new roof, siding, hail damage. Nor new windows, doors, etc. and ditto for hotwater tanks and central heat and air.

Even in the local towns there are towns where you do not need a permit unless the work amounts to $10,000 or more.

PS - carrying a recorder or printing out their texts while talking to the agent is a great way to document what they said.

 

[glenn walker]

Permits in my city of CALI are about fees being collected, So even a Dishwasher and a Sprinkler system and insignificant things legally requires one. BUT FHA is not the permit police and the Realtors in CALI are the ones responsible in a sale to disclose things to a buyer not the appraiser BUT IN general unless something is a room addition or a costly improvement we never got involved. It's mostly Health & Safety Issues FHA cares about.

 

[Fernando]

Many owners don't take out permits for like hot water heater, window replacements or kitchen and bathroom remodels. They should but many don't.
What I see more are electrical and roof permits. In most roof replacements, there are permits. Maybe roofers are required by their E&O?

 

[RCA]

I guess my first question is what permits are even required in that particular area. The only "permits" in much of the area I work are either a small fee or septic permits and only then on new construction. I don't need (nor did I get) permits to put a new roof, siding, hail damage. Nor new windows, doors, etc. and ditto for hotwater tanks and central heat and air.

Even in the local towns there are towns where you do not need a permit unless the work amounts to $10,000 or more.

PS - carrying a recorder or printing out their texts while talking to the agent is a great way to document what they said.

All true. But California is California.

 

[sputnam]

Hello, It has been some time since I have done an FHA and referred to handbook on this topic, but did not see anything...I am handling a purchase transaction whereby the listing agent, via his company is the owner of the property and there has been some extensive updating and replacing of systems/features...This work reportedly included new roof, HVAC, electrical panel, windows, recessed lights. I inquired about permits, and he noted the electrical panel was the only item that went through permit process, but he did note he utilized a licensed electrician for electrical and licensed HVAC contractor (but I did not get any info.on who performed roof replacement, but not permitted apparently). I dont know if buyer's are getting a home inspection and obvisoulsy I am not a code/construction expert, but does anyone know how HUD likes to see such issues/situations addressed (ie. just detail all info, or make subject to something)? Thanks so much! Bob

Most repairs don't require permits. Upgrades often do... usually depending on the extent of the work.