What Should I Know Before Buying a Home With Unpermitted Work?

What should you know before buying a home with unpermitted work in Huntington Beach or anywhere in Orange County? The short answer is that you want to know exactly what was built, whether the city has any record of it, and what it could take to bring it up to code, all before your contingencies end.

I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. Unpermitted work doesn't always mean you should walk away. It means you want clear facts first.

This article is general information, not legal advice. For questions about your rights or a specific contract, talk with a real estate attorney.

The City of Huntington Beach says building permits are required to erect, enlarge, alter, remove, demolish or repair a building, and that permits help make sure construction in the city is safe and meets the applicable codes.

When work skips that process, nobody from the city checked the framing, wiring, plumbing or gas lines. That can affect safety, insurance, your loan and your future resale. Ask your lender and insurance agent early how they treat unpermitted space.

California's disclosure rules are in Civil Code section 1102 and the sections after it. They apply to most sales of single-family residential property, and section 1102 says any waiver of those requirements is void.

The main form is the Real Estate Transfer Disclosure Statement set out in section 1102.6. Read every answer, especially on additions and permits.

Section 1102.3 covers timing. The seller delivers the completed statement as soon as practicable before transfer of title. If a required disclosure arrives after your offer is accepted, the law gives you three days after delivery in person, or five days after delivery by mail or electronic record, to terminate by written notice.

A newer rule, section 1102.6h, applies when a seller accepts an offer within 18 months of taking title, for offers accepted on or after July 1, 2024. That seller has to disclose additions, structural changes, alterations or repairs done by a contractor they hired since they took title. Contractor names are required on larger contracts. If the seller pulled permits, they give you copies.

Some sales are exempt from the transfer disclosure statement. Section 1102.2 lists court-ordered sales, including probate sales, and most sales by a trustee or other fiduciary administering a trust or estate. Other disclosure duties can still apply, so ask your agent and attorney what you will receive. If you are buying from a trust, this guide on trust sales explains the seller's side.

Start with the city's own records for that address:

1. Search the HB ACA Portal. The city's online portal includes record research and code enforcement record searches. The city lists record research for 1996 through 2021, so older or newer records may need a call or visit.
2. Call or visit the Permit Center. The city lists Permit Center hours as Monday through Friday, 8:00 am to 3:00 pm, and a general office line at (714) 536-5241 for questions about when permits are needed.
3. Compare the records to the house. If the home has a family room, bathroom or garage conversion that doesn't show up in the permit history, ask the seller about it in writing.
4. Bring in the right inspector. A general home inspection is a good start. Here's what a home inspection covers. For an addition or conversion, a licensed contractor or engineer can look at the scope of work.

If the home is in Costa Mesa, Fountain Valley or another Orange County city, check that city's building department, since each city keeps its own records.

California has special rules for some unpermitted ADUs. The California Department of Housing and Community Development (HCD) explains that a local agency shall not deny a permit for an unpermitted ADU built before January 1, 2020, because it violates building standards or local ADU rules. The agency can still deny it if correcting the violation is needed to protect health and safety, or if the building is deemed substandard.

HCD also notes that a homeowner may get a confidential third-party code inspection from a licensed contractor before applying, to understand the unit's condition and the possible scope of work. Talk with the city about the specific unit before you count on any path to approval.

If you're looking at a home with an addition or a converted space, I'd love to help you sort out the facts for that property before your contingencies run out. Let's start with a conversation. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.