Question: I recently lost the sale of my house because our buyer learned we replaced a broken toilet without obtaining a permit from the city. I didn’t have any idea this was required. I failed to disclose it on the property disclosure statement. Is there anything I can do? – Barbara
Disclose home issues or probability of ruining the sale
Answer: You raise two important points. The first is the necessity of disclosing everything, even little details, whenever you are selling your home. While many people correctly see the property disclosure as buyer protection, additionally, it protects the seller from situations like yours, as well as a possible lawsuit if your new buyer learns of a problem later that you failed to disclose.
While the expression “let the buyer beware” still rings mostly true, there’s an exception for hidden conditions that the seller knew about and failed to disclose. This condition can easily be avoided by making full disclosure of each and every issue with your property, even though you may believe it is minor.
In our experience, We have rarely seen a buyer nervous about too much disclosure, but weI have observed many closings destroyed when something turns up along the way. Most people can rationalize just about any concern when they are interested in something, whether it is an expensive watch or a house having a small roof leak, but nobody likes surprises.
The second point is permits, that are becoming more of a roadblock to closings lately. Most work performed on your house needs a permit from your city. Certain air conditioner repairs, plumbing and even cutting down a tree will need approval from your city or town. Failure to obtain a proper permit can certainly have ramifications from a fine to, like your situation, a blown closing.
Many contractors don’t inform the homeowner of the requirement for a permit either since they’re not aware of the requirement in your particular municipality or since they do not want the problems and delay of obtaining one. However, ignorance of the law is not an excuse for breaking it, and it is up to the homeowner to get things done correctly.
Fortunately, most building departments are helpful and have robust internet resources. You’ll have to pull a retroactive permit for your home and, going forward, ensure you get one as required.
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