Posted by: Karim Ali
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The Risks and Solutions
Thinking about buying a home in Ottawa with renovations done without permits? This is a common concern for many buyers, and it’s important to understand the risks and how to handle them. Here’s a concise guide to help you navigate this tricky situation.
Est. reading time: 3 mins
When you’re on the hunt for a new home in Ottawa, discovering that a property has undergone renovations without the necessary permits can be a significant red flag. However, it doesn’t have to be a deal-breaker. Here’s what you need to know to make an informed decision.
Understanding the Risks
- Legal and Financial Liabilities: Unpermitted renovations can lead to several legal and financial issues. The city may require you to pay fines or even reverse the renovations to comply with local building codes. This can be costly and time-consuming, affecting the overall value and appeal of your new home.
- Safety Issues: Safety is another major concern. Renovations done without proper oversight might not meet safety standards, leading to potential hazards like faulty wiring, inadequate structural support, or plumbing issues. These can pose serious risks to you, your family and any visitors or occupants of your home.
Importance of a Home Inspection + Disclosures
One of the best ways to uncover unpermitted work is through a comprehensive home inspection. A qualified inspector may be able to identify signs of unauthorized renovations and assess the quality and safety of the work done, however, their duty of care does not include making sure permits were obtained for any renovations completed.
Sellers are typically obligated to disclose any known unpermitted work. However, if they fail to do so, it can become a point of negotiation. Ensure that you ask direct questions about any renovations and request documentation to verify that all work was permitted and inspected.
Negotiation Solutions
If unpermitted work is discovered, you have two main options:
- Requesting Remediation: Ask the seller to obtain the necessary permits and correct any issues before closing the deal. This can ensure that the home meets legal and safety standards.
- Price Adjustments: Negotiate a lower purchase price to account for the cost of bringing the renovations up to code yourself, and/or for the risk you’re taking on. This can provide you with the financial flexibility to handle any required repairs or modifications.
Lawyer Up!
Engage a real estate lawyer to navigate the legal implications of buying a home with unpermitted work. They can provide advice on how to proceed and ensure that all necessary precautions are taken to protect your investment.
Bonus tips
1
Future Buyers
Consider how unpermitted work might affect your ability to sell the home later. Ensuring that all renovations are properly documented and permitted can enhance the property’s resale value and attract more buyers.
2
Budget for Surprises
Always have a contingency budget for unexpected costs that might arise from unpermitted renovations or other unforeseen issues during the buying process.
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