Lee, your last sentence reads with a possible thought that ....if you inquire about proper permits being issued, and the dept. person asks you for addresses and details of the situation....then perhaps that group will send out their field rep who will view the property and now the h/o will be paying more property taxes ---- all because YOU asked those initial questions. Did you get to see the interior or was this a drive-by assignment ? I see at times considerable discrepancies in data that warrant such inquiries. Short of your direct measurement of home (forget that on drive-by's) there can be big diff's between last MLS record, current county assessor, and lastly the local permit-issuing agency if one is so organized and available. They do not all have coordinated and shared databases. I know there are many basements which get finished and (1-car) garages which get converted into increased living area and no permits are ever secured. I do not feel obligated to research all possible permits, yet sometimes the indications are worthy of such a pursuit and for sure my report will speak to the permit/lack-of-permit disclosure. It is certainly possible that our Assessor office will "make a note" about an address that I might ask about, but whether that h/o pays more taxes a year later comes from Assessor follow-up and not my say-so of any kind. Some day, when Joe Homeowner goes for that 4th re-fi, it just might get discovered that his basement and garage are now finished living area ! You report what is there now as best you can, and other people's records may or may not be changed.