Disclosures when selling a home with unpermitted improvements (Winston-Salem Triad area)

In the Winston-Salem Triad area, if a seller has added of finished rooms to a home without obtaining the necessary building permits, what disclosures are necessary when the property is listed in the MLS?

The seller’s listing agent will be required to fully disclose the existence of the unpermitted area, clearly informing prospective home buyers that the buyer will need to bear the costs of bringing the property in compliance with the building code if required.

The North Carolina Real Estate Commission notes that improvements made in violation of the building code can, and usually are, ordered to be removed or brought into code compliance at the expense of the property owner.

Another potential issue with unpermitted space is if there is a fire or some other catastrophic event, insurance could be an issue.

If you’re a seller who has made unpermitted improvements to a home, you should really try to get the proper permits before listing the property for sale.

If you’re a buyer looking at a home that appears to have unpermitted square footage, you should push the seller to obtain the permits.