Selling A House With Unpermitted Work In Pennsylvania

How To Sell A House With Unpermitted Work In Pennsylvania

Are you ready to sell your house but realizing that some of the improvements were never permitted?

Don’t panic!

In fact, if you want to get pretty technical about it, over 40% of homes sold in 2024 had some level of unapproved or unlicensed work.

In this guide, we’ll cover exactly what you need to know for selling a property with unpermitted work.

You’ll learn:

• Exactly what unpermitted work is.
• How to find any historical permits on your house.
• Why so many people avoid getting permits and how it impacts the home sale process.
• What you can do to sell your house regardless of unpermitted improvements.

Let’s jump right in!

MAIN TAKEAWAYS:

• Unpermitted work does not always mean bad work. There are certain home projects where having a permit is absolute necessary, but other smaller ones where it may not be a huge deal.
• Selling a house with unpermitted work can be tricky. Being upfront and honest about your knowledge of the situation will be the best way to get a deal done quickly.
• Weigh the pros and cons! If you’re already set on selling the house, fixing unpermitted work might just be another headache you don’t want to deal with. Sell your house to a cash buyer and those issues disappear.

Can You Sell a House with Unpermitted Work?

Selling a house with unpermitted work can be an absolute rollercoaster, but I’ve done it before. 

So yes, it is possible if you buckle in!

What you’ll find when doing this is that any property can be sold with unpermitted work as long as all parties are aware.

Typically, anything is negotiable in real estate.  However, once you involve the city or municipality in your transaction with unpermitted work, then you are required to comply and fix everything before or shortly after settlement.

What Happens If You Find Unpermitted Work?

Whether it’s you or a home inspector who finds unpermitted work, you can expect things to get complicated from that moment forward.

Unpermitted work on a home is a serious matter. 

On Philadelphia’s L&I page, there are 82 links to different types and kinds of permits.  Everything from fence permits to antenna and solar panel permits!

The first issue you will run into with selling a house that has unpermitted modifications is that inspectors typically document everything they find. 

This means that your lender will be notified. 

Your insurance carrier with see it. 

It’s even possible that your township might get a letter in the mail as well!

Take a look at this excerpt from an Econosurance article about unpermitted work:

Now you know just how serious an unpermitted addition or electrical panel can be!

Most importantly though, the buyer and buyer’s real estate agent will be notified of the inspector’s findings.  Once this all occurs, consider your deal back on the table and negotiations for repairs, concessions and/or cancellations are all in play.

Before you get to this point through, it’s important to know what unpermitted work looks like.

From there, you can start to tell whether it is serious or not. 

Although you might want to trust the inspector or engineer, remember who they are getting a check from for their services 😊. 

In the homes I’ve sold, I’ve had home inspectors bring forth some very minor issues as “major deficiencies” when they really were not. 

Take a look at some of these examples of unpermitted jobs below:

As the seller and owner of your property, you should know that the following unpermitted improvements to your house can be crucially important or maybe just a minor issue where getting a retroactive permit could be as little as a couple hundred dollars.

But, The Seller Didn’t Disclose Unpermitted Work!

No one wants to be on the receiving end of this kind of thing.

You go through all the works and hassle to finally buy a house.  You get the keys.  You move in.  It’s your home.  Things are looking great! 

Then you uncover that the seller made some unpermitted changes to the property.  And even worse yet, they knew this all along and never disclosed anything.

Infuriated would be an understatement for how many would feel!

It should be known that failing to disclose unpermitted work on a house is not only unethical but also illegal. 

Homeowners can sue.  They do sue. 

And there is always tons of money and hassle that follow that lengthy legal process.

According to Nolo, buying a defective home could open up a legal opportunity worth thousands of dollars in judgments:

So if you’re a homeowner, think about the person you bought the house from.  Were they upfront and honest about the renovations and improvements? Was there any kind of legal disclosure?

And if you’re a seller, think about the risks you face by not being forward and forthcoming with the situation behind closed walls.

This is such a serious matter that the Philadelphia building department has an entire webpage for submitting claims and complaints around unpermitted work or unlicensed contractors.

In fact, if you’re in Philadelphia, any resident could even just access their online form.  Check out how easy and comprehensive this is to do:

Step 1: Search on Google “[Your location] report unpermitted work”

Step 2: See what options are available to report unpermitted work.

Step 3: Report it using one of the options.

To me, this demonstrates just how serious cities are beginning to take these kinds of matters.

You can easily see that the county, at least in Philadelphia, is willing to protect people from unpermitted finishes that may be unsafe or unfair to buyers.

Work Done Without Permit by Previous Owner

One thing you might be wondering is the responsibility aspect around all of this.

Who is accountable for unpermitted work?

The easy and correct answer is:

The current homeowner.

If unpermitted work was done by a previous owner, the current homeowner is still responsible. 

They are responsible for fixing it, disclosing it, or just selling it at a discount with a disclaimer around unpermitted work.

Fines for Unpermitted Work

Did you know that on top of all of the headaches an unpermitted discovery may bring, you may also now be “on the clock” with your local authorities?

According to Angi, any unpermitted project at a property could be accruing penalties as much as $500 per day. 

I mean, it makes sense.

If it violates local building codes or poses safety risks, you have to create an incentive to get it fixed quickly.

In my experience, this is one of the main reasons sellers want to accelerate the sale of their house and just be done with it.  Selling a house with unpermitted work is difficult, but it releases the homeowner from these harsh fines and penalties.

What Are Permits and When Are They Needed?

Permits are essentially a “stamp of preapproval” to go make modifications or upgrades to an existing property.  A permit is a permission.

Local government authorities often allow homeowners to carry out specific types of work on their property as long as it is done up to code, by licensed professionals and meets the requirements of a building inspection. This step in any home renovation project ensures that the property complies with safety and local building regulations so that future occupants, owners and visitors can enjoy the utility of the home without concern.

Obtaining a Permit for Improvements

Getting a permit is not always easy.

Property owners can request a permit through an application process.  It’s very common for additional documents to be required.

In some cases, you can expect to provide detailed plans of the proposed work or future uses of the proposed additions/improvements.

The plans are reviewed by the city.  It varies, but you can expect anywhere from days to months to get a response.  The city might suggest changes or they might approve of the permit and issue it to you.

How to Get a Permit for Home Improvements

If you are looking to sell your house with unpermitted work, you might need to know how to go and get permits retroactively.  It’s very common for homeowners to contact the city and explain the situation. 

More often than not, they will guide you to begin the regular permit process – even if your request is to get permission on something that is already complete!

Here’s how you can request a building permit in my area of Philadelphia (it’s very likely that the steps are similar for many other locations):

1. Submit Application: Provide detailed plans and specifications of the project you would like a retroactive “approval” on.  Be clear and upfront that the work is already complete.

2. Review Process: The plans are reviewed and it is often during this step that someone from the city will contact you to hear more about the work that is already done.  In fact, some cities may just skip to Step 3 and send someone out to review the work.

3. Inspections: It is very likely that the city will set an appointment for an inspector.  Although many permits can be issued without a home inspection, it’s a bit different in this case since the work is already complete.

4. Final Approval: Once the work passes all inspections, a final approval is provided to you and documented at the city.

How to Tell if Permits Were Pulled

If you’re trying to sell your house and need to know, once and for all, if permits were pulled…then you really have these four options to pursue:

Go Check The Records

Taking a walk down to city hall and pulling the historical records is always an option.  In my experience, many homeowners avoid doing this because it might just open up your house to more scrutiny, home inspections and approvals…when all you were looking for originally was some information.

Here’s a pro-tip that I use for my business in Philadelphia:

Look online.

1. Find your city’s property records database:

2. Search your address

3. Navigate to the “Licenses & Permits” section.

4. Open up the files and start looking.  Don’t see anything?  That means there were no permits pulled 😟.

Anything you find cataloged on your city’s database of historical permits is going to be “permitted” work. 

Open Up The Blueprints

If your house is relatively new and you have access to the plans used to build it, then opening those up might give you an idea of whether or not the work in question was permitted.  This option is not full-proof since any homeowner before you could have went to city hall and filed a building, plumbing or electrical permit without having the blueprints reflect that.

However, if you are the only owner of the house and no one else has ever lived there or been in a position to approve renovations, then you can rely heavily on what you see in the blueprints as a baseline for what the house should look and function like.  If there’s something additional that is concerning you about the house and it’s not in the blueprints or not something you’ve done, then you can begin to determine if you have an “unpermitted” work situation.

Call Previous Owners

I wish more people would just do this.

This is the simplest and easiest way to get some information.  In fact, I talk to many of the sellers I purchase homes from through my business just to ask them questions about nuances or things I observe when remodeling or renovating.

Even though some of the prior homeowners may not know, they may be able to point in a direction for more information (paperwork, contacts at city hall, neighbors, contractors who filed permits, etc.).

Sometimes the best option is the easiest.  Pick up the phone!

Call Contractors

This is your last resort to determine if any permits were pulled.  It’s probably the least reliable as well 😟.

Have you ever walked through a basement and seen a plumber’s phone number in marker on the furnace or hot water heater?  What about a sticker logo on the electrical panel?  Or even a placard in the concrete work on the walls and floors?

If so, you might have an “in”.

Call these contractors and start digging around.  What you’ll probably find is that any one of them who would leave their phone number or contact information behind is probably a good-standing contractor and only does permitted work (or so they would say!).  However, you might be able to get more context:

1. Maybe the electrician remembers what the walls looked like opened up.
2. It’s possible that the plumber may have been called in to fix a DIY job.  That might make you wonder what else was done under the radar.
3. Or perhaps the contractors have stored the permits themselves and could help you confirm once and for all if the work done on your house was permitted!

Why Homeowners Avoid Pulling Permits

We asked 70 of the homeowners we purchased houses from why they didn’t just pull a permit and do it the right way.  Here was the responses we got.

It Costs Too Much

This was far and beyond the biggest reason folks decided to get the work done without a permit or licensed contractor.  And you’ll commonly see this on projects where there’s a handy husband or DIY cousin that can do it for the half the cost.

The reality is this:

Not only does it cost money to go to city hall and get the permit (which is just a piece of paper), but it also costs more money to hire the right qualified contractor to then come in and do that kind of work.

And on top of that, the costs just keep piling up:

Finding the right contractor who can do reputable and permitted work is very difficult.  You might have to wait around until they are free and ready to service your property.

At the end of the day, if you’re a handy homeowner and you can do the work yourself without a permit, then the only cost is the supplies and materials.  That always ends up being just a fraction of the overall bill you would get from a full fledged project. 

It’s easy to see why many homeowners decided to DIY.

It Takes Too long

About half of the respondents to our survey indicated that getting a permit and finding a good reasonably priced contractor just takes a really long time.

Homeowners want results fast.  Usually because getting something fixed in your home is a necessity.  Think heat, water, comfort, utility. 

Any step in the process that holds things up is only going to get skipped over.  Even with all of the good intentions of doing quality work, correct work and up to code work…you still have to decide if waiting around for those things is practical.

I Didn’t Know I Had To

I love this one!  23 of our homeowners indicated some form of ignorance around pulling permits.  I don’t question them since my offer is always to buy your house as is.

But, let’s be real.  How many of those sellers really did not know. 

Okay, maybe some.  There are some home improvement projects that may surprise you as needing a permit!

I Don’t Like Home Inspections

You and me both!

Nobody likes someone walking through their home and putting eyes on every little nook and cranny.  However, it is part of the permit process. 

Home inspections can typically result in one or two (or more) additional requests or change orders.  On top of that, anything the inspector from the city sees is up for inclusion in their report.

What Happens if an Inspector Finds Unpermitted Work

Getting your electrical upgrades inspected?  The inspector might notice that the framing is not up to code or done incorrectly.

Getting a structural engineer to verify the footings on your addition?  The engineer might uncover that your brick façade if no longer safely anchored.

82% of the sellers mentioned inspections as being a part of the overall headache around getting permits.

My House Has Unpermitted Improvements. Can I Still Sell It?

Yes, you can still sell a house with unpermitted improvements, but it requires a bit of thought and strategy. Here are three options you can consider to get the deal done:

Option 1: Sell Your House As-Is

Selling the house as-is means you are selling it in its current condition without making any repairs or improvements or going out and getting retroactive permits. Going this route will often mean a lower price as part of the home sale process, but it can save you from the prolonged hassle of getting a retroactive permit or worse yet, having to tear out the shoddy work and fix it.  One thing to keep in mind, you will need to be forthcoming with the buyer about the issue (legal disclosure, information disclosure, etc.)

Option 2: Obtain Permits After the Fact

Applying for retroactive permits involves contacting the city and ensuring the work in question meets current local building codes. This process can be done but it’s a bit of gamble.  Any time you involve the city, you open up your property for additional scrutiny and review.  This typically becomes added costs and more time to get it all approved.  The bonus though, is that you may finally have a fully-permitted property to sell at the end!

Option 3: Redo the Unpermitted Work

Redoing the unpermitted work involves tearing out the existing work and starting over with the proper permits and home inspections. This option ensures full compliance with building codes but can be very expensive and disruptive.  Consider this your most labor intensive and financially draining option as not only will you have to invest further in your home, but then to extract the most value when selling you will also want to hire and pay for a top-notch real estate agent.

Here’s how I would go about making this kind of decision:

Selling A House With Unpermitted Work – FAQ

Q: Can I sue the previous owner for unpermitted work?

A: Yes, anybody has a right to file suit. Before you do, you’ll want to get a consultation with an attorney who can explain to you what the risks are, what the probabilities of collecting a judgment are and also how much it will all cost. They can also help you understand full legal disclosures.

Q: Are unpermitted additions grandfathered in?

A: Unpermitted means unpermitted. Grandfathering is a concept from building codes and how they change over time. If any new work you do on your house is unpermitted or not “up to code”, then it won’t be grandfathered – it will be unpermitted.

Q: Who can buy my house with unpermitted work?

A: We can!  Our company is a cash home buyer.  We buy houses with unpermitted work all the time and offer fair pricing.  There is never an obligation or risk to get a cash offer from us for your house.

More Blog Articles You Might Enjoy

Selling A House In Foreclosure

Selling A House During Divorce

Sell Your Home With Water Damage

Author: Doug Greene

Doug Greene is no stranger to all topics real estate and business. For over a decade he has been educating others and helping homeowners navigate difficult, complex problems with their property.

His work has been featured in the NY Times, Washington Post, Realtor.com, Apartment Therapy, HomeLight, Homes & Gardens and many more.