Selling With Unpermitted Work in California? Disclose It

Maybe a past owner added a room. Maybe someone finished the garage. Maybe you replaced the water heater yourself and never pulled a permit.

Now you're getting ready to sell in Santa Maria or Orcutt, and you're wondering what you have to tell a buyer.

The Short Answer

In California, sellers generally have to disclose what they know about the home that could affect its value or a buyer's decision, including work done without permits. That's done on standard state disclosure forms. Disclosing honestly protects you. The things that cause trouble after a sale are usually the things a seller knew about and didn't mention. For anything specific to your situation, talk to a real estate attorney.

Why Disclosure Protects You

This is the part people get backwards. Disclosure isn't a confession. It's protection.

When a buyer knows about something up front and buys anyway, it's part of the deal. When they find out after closing, it can turn into a dispute. Telling them early takes that risk off the table.

The Usual Suspects

Here's what tends to come up in older homes around here. Patio covers and additions tied into the house. Garage conversions. Electrical work done by a handy owner. Water heaters and other equipment replaced without a permit. Roof work and window changes.

None of these automatically kill a sale. Buyers see them all the time. What they want is to know about it, and to know what was done.

"But It Was Done Right."

That might be completely true. And it's worth saying.

If there are records, receipts, or anything showing who did the work and how, find them. A buyer reads "unpermitted electrical" very differently from "work done by a licensed electrician, here are the receipts." The facts haven't changed. The story has.

Should You Permit It Before You Sell?

Sometimes. It depends on what the work is, what it would cost, and what it does to your price and timeline. Sometimes getting a permit after the fact is simple. Sometimes it opens up more than you want.

As a Realtor and a licensed general contractor, I can help you think through which items are worth dealing with and which are better disclosed and priced in. Buyers will still get their own inspection and pest report either way.

Your One Step This Week

Not sure what to do about old work on your house? Call or text me at (805) 868-6126. Tell me what was done, and I'll walk you through your options before you list.

This post is general information, not legal advice. For your specific disclosure questions, talk to a California real estate attorney.

Lisa Bognuda, REALTOR® | DRE #02019640 | eXp Realty of California, Inc. | Licensed General Contractor, CSLB #283343