basement development permit

[bones]

Question for you guys. I'm looking at buying a house in Calgary that has a finished basement, open space with a bathroom and enclosed utility room. The electrical/plumbing/drywall/flooring was all done professionally, the owner just did some framing and painting essentially. the development is excellent, not flawless, but really well done.

They didn't get a city permit for the development as they were advised that it wasn't really necessary.

Considering most of the work (at least the dangerous stuff) was done professionally and it passes a home inspection. Is there any reason for me to retroactively get a permit for the basement, other than incurring more taxes?

thanks,
j.

[ken0042]

I'd call 311 from work (so they don't have your home number on callerID) and tell them what you told us.

As Fotze said, it can come back to bite you if you go to sell down the road and the new buyer discovers there was no permit. Any time I've had the city in for an inspection they are really looking to see if I have things out of whack; like structural tied into, plumbing running uphill, etc. I'm just not sure what they can/will do when it's all completed as they like to see the stuff that is behind walls, etc.

[bones]

Yeah, the plumbing was already roughed in according to the plans. Only thing that was done was to run the water supply to the taps which can be seen from the storage room, and the drain from the sink (also visible). Other than a couple of walls, nothing structural (ie breaking concrete) etc was done.

I think I'm probably safe to just have the home inspection done and not worry about the city permit. It only incurs me more tax and gives me no recourse anyway?

[ken0042]

And that's what I was getting at Fotze. Bones sells his house, lists it with "partially finished basement." Buyer goes to buy; only condition on the sale is the home inspection. Home inspection uncovers the "no permit" and the buyer wants $2000 off. Bones has the option of telling the buyer to get bent; but then faces having the house have to go back onto the market; and having people wonder why the sale fell through.

[ken0042]

If it's a $400K house and his value goes up by $10K, he's looking at a 2.5% increase.

[Eagle Eye]

You know what the funny thing is. When I did my basement I needed to get an electrical permit (I didn't do any plumbing) to appease the Insurance company, the city (pretty dumb if you ask me) never made me get a building permit. So I dont know if it is still possible to get a plumbing and electrical permit without getting the building permit, but that way your taxes do not go up.

[burn_baby_burn]

I would be very cautious about buying this house. When I did my basement. The electrician really stressed that I have the electrical inspection done before I put up any drywall. He said that if the inspector comes and he can't see the electrical work, he will make you take the drywall down so he can see the that the wiring is up to code. Others told us not to worry about getting a permit. But I thought, God forbid this house burns down and I didn't have an electrical permit and inspection. Insurance probably woudn't cover it.

Protect yourself. Other houses will come on the market. I'm in the process of looking for a bigger home myself. My wife and I are being really picky because it is a buyers market right now. If it isn't exactly what we want. We are not making an offer.

[Frank the Tank]

Never ever get a permit. The city gets enough of your money. If the work is done well, then don't worry about it.

[Titan]

Ever see Homes on Homes? A permit is for your protection. A bad electrician can cause your house to burn down. Not a chance i would be willing to take.

[CaptainCrunch]

If you don't have a permit, and your house floods or ignites due to the work, I believe that your insurance won't cover it will it?

[ken0042]

Originally Posted by CaptainCrunch

If you don't have a permit, and your house floods or ignites due to the work, I believe that your insurance won't cover it will it?

From what I've been told, insurance will eventually cover it. However you may have to sue them instead of submitting a form and getting a cheque. Maybe not the hardest thing in the world, but the real problem lies with your next house. You may find it next to impossible to get insurance on the next house.

[CaptainCrunch]

Originally Posted by fotze

Alot of ifs are starting to stack up in these scenarios.

If, wishes, Candy, nuts, christmas

You get it

[ken0042]

Yeah, there sure is. I suppose that's par for the course when somebody asks how to do an "illegal" thing. That's part of the reason I tell people to just go ahead and do it.

Another thing, my buddy went to get a HELOC a while ago, and the first bank's appraiser wouldn't allow the finished basement onto the value of the house because there were no permits pulled.

[mykalberta]

I just have one question. Lets say someones un permitted home addition goes up in flames and causes damage to another house say in a fire.

Does home insurance still cover it - is it something they even check for?