Unpermitted garage conversion

[Linsname]

I'm sure this has been discussed many times, but I could use some advice. I am putting in an offer for a house that has an unattached garage conversion. It includes a bathroom, bedroom and "living area" with a kitchen counter and sink. No fridge or stove, though I'm sure it doesn't make a difference. It also has a wall a/c unit and a free-standing pellet stove. The seller tried saying they didn't know if it was ever permitted, it already had been converted when they bought the house 3 years ago, he just did some updating in it,but my agent was able to call the city and find out the conversion was not acknowledged. Also, the square footage listed is only for the house. Also, I know when the seller had purchased the house back in 2011, it was selling under Fannie Mae Homepath, and I believe he used that to do all the renovations in the house. My lender tells me that there is no way to know which way the appraisal will go or whether the underwriter will approve it. They will probably have to appraise without the garage being counted, then underwriter has to approve. My questions are, will underwriter give the choice to either get rid of all plumbing, etc, or give the opportunity of getting it legally permitted? Will this cost a lot of money? And will I be able to counter the seller on the price if the appraisal comes in lower than his asking price? Is he required to pay for the changes required by the underwriter before they will appove the loan, or do I have the right to ask the price of the house to go down to compensate for the expense? I am going FHA, and I could go conventional, but my lender says even going conventional will present the same problems regarding loan approval, so it won't make any difference. This area in CA is common for people to have unpermitted garage conversions, I don't understand how people are able to sell their homes is this is such a risk to buyers? And I don't understand why the illegal consequences of someone else falls into the buyers lap, while the seller still expects to get value for it. So unfair.

 

[Mike Kennedy]

Where in CA? Governing Municipality?

 

[Randolph Kinney]

The areas I appraise in also have garage conversions as well as additions without permits. They sell and resell all the time.

Concerning garage conversion, check with the governing authority planning department to find out if a garage is mandatory as part of zoning (might have to convert it back). Also verify the permit process; does it allow for retro permits?

Specific lenders have their own guidelines for improvements without permits; some will accept them, some won't.

 

[Linsname]

Where in CA? Governing Municipality?

In Fresno County

 

[Mike Kennedy]

In Fresno County

Chapter 1, section 105.1 of the California Building Code (CBC) states:
“Any owner or authorized agent who intends to construct, alter, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert or replace any electrical, gas, mechanical or plumbing system shall obtain the required permit.”

15.04.030 Violation – Penalty.
The penalty for violation of any of the provisions of Title 1 of the Fresno County Ordinance Code
shall be as prescribed in Section 1.12.010 as a misdemeanor, or Section 1.12.020 as an infraction, or as prescribed in Section 15.04.080.C, Work without Permit. The provision of this Title may also be enforced by an injunction issued out of the Superior Court upon suit of the County or the owner/permittee or person in possession of any real property affected by
such violation. The method of enforcement shall be cumulative and shall not affect the penal provisions hereof.
(Ord. 07-049 (part), Ord. 03-0001 (part), Ord. 96-003 (part), 1996, Ord. 92-026 (part), Ord. 0-84-008(part), Ord. 0-81-018 §1 (part), Ord.470-A-41 §2, 1978, Ord. 470-A-36 §1 (part), 1974.)

15.08.010 California Building Code adopted
15.08.020 Exceptions and superseding provisions
15.08.030 Exemptions
15.04.080 Building permit requirement
C. Work without Permit.
For permits issued after commencement of construction, a Violation Fee, as determined
by the Building Official, shall be charged. The fee shall be based on that portion of the work that
307-5 has been started without the required permits. These fees shall be twice the regular amount charged except where a new owner has acquired the property in good faith and without
knowledge that construction work had been performed without the required permits. This fee is
separate from and in addition to the permit fees.
http://www.co.fresno.ca.us/ViewDocument.aspx?id=4210

http://www.co.fresno.ca.us/DepartmentPage.aspx?id=41486

 

[CANative]

OP.. send me an email with the address and I'll doing some digging around for you.

gregboydappraisal 1

at

gmail.com