Here in our mountain communities, houses have a funny way of evolving. A two-bedroom cabin becomes a three-bedroom home, a storage area becomes living space, and suddenly there’s an extra bathroom that wasn’t there when the house was built.
Sometimes permits were obtained, sometimes they weren’t and sometimes the paperwork seems to have disappeared into the same black hole as the owner’s manual for the furnace.
To the homeowner, these improvements make perfect sense. The extra bedroom is comfortable, the bathroom works beautifully and everybody’s happy. So, what’s the problem?
Well, that depends on who wants to buy your house.
I recently spoke with a buyer whose plans to purchase a mountain home changed after discovering an apparently unpermitted bathroom. They intended to operate the property as a short-term vacation rental; that improvement raised questions about whether the county would issue the necessary permit. Ultimately, they walked away. A disappointed buyer, a seller without a sale and some understandably frustrated people along the way.
Here’s what homeowners sometimes overlook: Just because an improvement works for you doesn’t mean it will work for the next owner.
San Bernardino County requires short-term rentals to comply with applicable building and safety codes, and unresolved violations can prevent permit approval. Even if a property currently has a short-term rental permit, that doesn’t guarantee a new owner will qualify for one. Rules and requirements can change and buyers need to verify their intended use.
But this isn’t just about vacation rentals. Unpermitted improvements can create questions about financing, insurance, appraisals, future renovations and resale value. What you consider a charming bonus room might become someone else’s expensive problem.
So, who’s responsible for catching these issues?
California real estate agents must conduct a reasonably diligent visual inspection and disclose material facts they discover. California Civil Code §2079.3 expressly states that an agent’s required inspection does not include searching public records or permits concerning a property’s title or use. In other words, agents are not legally required to research building permits as part of their statutory visual inspection duties. Nor can we determine whether every improvement was legally constructed simply by looking at it. But we can ask questions, recognize potential concerns and recommend further investigation.
And sellers have an important role. The Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ) ask about known improvements and unpermitted work. Completing these disclosures before the property is marketed gives your agent the opportunity to discuss potential problems and advertise the home accurately.
Most importantly, don’t decide something isn’t worth mentioning simply because it hasn’t bothered you. Your buyer might have entirely different plans and that seemingly insignificant detail could determine whether they purchase your home at all.
You don’t necessarily have to fix every issue before selling but you do need to disclose what you know. Surprises are wonderful for birthdays. They’re considerably less enjoyable during escrow.
And that extra room you love? It shouldn’t become the reason your buyer walks out the door.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs, and the surrounding mountain communities. Reach her at (909) 442-1345 visit www.HomesInLakeArrowhead.com, and follow her on social media @TheresaGrantRealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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