Nick Answers Reddit
Assessing Risks of Unpermitted Structural Modifications in a 1995 Ontario Home
I am interested in a property (Ontario). It is listed at 900,000. Built in 1995. By looking at houses of a similar layout, it is clear a wall was taken out at some point. Our agent says from past listings this was done pre-2017; there are no photos of the house with this wall in place, but the earliest listing mentions a bit of a renovation.
From a superficial look, all seems correct—there is a bulkhead where you’d expect a beam, and no obvious cracks or sagging. Span is about 12’.
At any rate, I am wondering what steps I can take to de-risk this for me if we choose to progress on the property. Is having a structural engineer look worthwhile if we can’t open things up? Is there insurance for this specific sort of thing? Is there any risk to my homeowners insurance policy if we take on a house with (older) unpermitted work? Any other thoughts?
Edit: this is a ground floor wall between a finished basement and the bedrooms on the second floor.
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Nick’s Response:
Purchasing a home with potential unpermitted structural modifications requires careful consideration. Here are some steps to help mitigate risks:
Consult a Structural Engineer: Even if you can’t open up walls, a structural engineer can assess visible elements and provide insights into the integrity of the modification. They can identify signs of improper work or potential future issues.
Review Title Insurance: Title insurance can offer protection against unpermitted work discovered after purchase. It’s essential to understand the specifics of your policy and what it covers in such scenarios.
Assess Homeowners Insurance Implications: Unpermitted work can affect your homeowners insurance, especially if it leads to damage or claims. It’s advisable to discuss this with your insurance provider to understand potential risks and coverage limitations.
Consider Negotiation Leverage: The presence of unpermitted work can be a point of negotiation. You might request the current owner to obtain retroactive permits or adjust the purchase price to account for potential future expenses related to the unpermitted modifications.
Evaluate Long-Term Implications: Consider the potential challenges unpermitted work might pose in the future, such as difficulties during resale or issues arising from municipal inspections.
Three Final Tips:
Verify Permit Records: Before purchasing, check with the local municipality to see if permits were obtained for significant renovations. This can provide insight into the property’s compliance with building codes.
Plan for Potential Repairs: Budget for possible future repairs or modifications to address any issues arising from unpermitted work. Being financially prepared can alleviate stress down the line.
Stay Informed: Familiarize yourself with local building codes and permit requirements. This knowledge can help you make informed decisions and avoid potential pitfalls in property transactions.
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