Avoid permit requirements by selling 'as is'?

aquafire

Active member
Feb 14, 2024
31
3
I've been reading on here about homeowners who have been fined for selling their home without obtaining the proper permits for its construction in the first place. It must be incredibly frustrating to deal with those issues. So, I'm now wondering whether a workaround could be selling the home 'as is'. What do you think?
 
Location
United States
It might work, though I wonder if those circumstances would create a hardship when the buyer went to apply for a mortgage. So, it might be tougher to get it sold. I believe that selling a home 'as is' also lowers its market value. I doubt it's worth going that route.
 
That is a good question, because I have seen properties being sold "as is" before, usually due to what condition the property is in. I looked into it some, and it seems like you can do so, but I'd recommend still checking up with a real estate agent or even a lawyer on if it's a good idea or not.

Also, if you do decide to do it, make sure the new buyer is aware of any unpermitted work. That sort of info is supposed to be given to them before a sale is made. The buyer will take liability once they take ownership, so it's important to let them know exactly what they're getting into. It could expose you to legal trouble for not disclosing to the buyer.
 
I've heard of people buying property as is, but I don't know fully what the rules are in regards to that. I did a search, and it's close to what Winny says. You can sell as is, but whoever purchases the property needs to be aware of this, and they will then have to get the appropriate permits to make the building in good standing.
 
Even though there are hassles, you can actually transfer ownership of your property to the buyer even when you do not have all the required permits. But the new owner should any house get the permits. You can sell the property in as is conditions but it might affect your selling price if you do not have the required permits
 
I believe advertising a property "as is" just means the seller isn't willing to make repairs. It doesn't relieve them from permit or disclosure requirements.
 
I believe advertising a property "as is" just means the seller isn't willing to make repairs. It doesn't relieve them from permit or disclosure requirements.

Agreed. With something this big and flagrant, though (i.e., selling an entire illegally constructed house), I'd hope the local jurisdiction would have the authority to hold up the sale and take measures against the homebuilder to ensure the experience didn't end up being a net positive for them. I'm having trouble believing a seller could really get away with selling an entire unauthorized house as-is, with legal repercussions only being addressed after the point of sale.
 
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