Homeowner responds to column on remodeling permit process
Note: This week’s MarketWise column features a reader’s response to Pat Kapowich’s June 17 column that ran in The Mercury News and East Bay Times.
Q: The contractors recommended by the Realtor were negligent in the situation. Any competent contractor will discuss permits (and who gets them) before signing a contract. I’ve dealt with five different contractors (two of them for multiple jobs) for work on my house over the years, and everyone discussed permits and who would get them before agreeing to the task. (In some cases they said that permits were not needed, but they brought it up to make sure there were no misunderstandings.)
A: The contractor, who started remodeling without proper city building permits, had worked with one of the sellers over the years. Also, one of the sellers, the contractor and the real estate agent had worked together on other houses. The musthave permits conversation between contractor and homeowner you described probably took place on that first property. If so, and if the seller initially opted to forgo city building permits, the contractor might not introduce the topic again. Your description is pitch-perfect about the proper dialogue between homeowner and contractor regarding permits. Detractors do not want to “lose” blocks of time required to apply for the permit(s), meet building inspectors on-site or to have one “snooping around” their property. Throughout my career, I’ve seen the public begin to warm up to the idea of going through the time-consuming city building permit process. It’s essential to note that fines and penalties for not obtaining city building permits will exceed the cost of building permits. Unfortunately, many homeowners and contractors shun the idea of investing time and money in city building permits, instead opting to proclaim “the work was done to code by a contractor.” However, homebuyers and home sellers do not know if repairs or upgrades meet today’s proper building codes. If not, insurance companies will be hesitant to cover the cost of a water leak or fire associated with unpermitted work. Additionally, most laypeople don’t confirm a person is a contractor with a license in good standing through the Contractors State License Board via www. cslb.ca.gov/ or 800-321CSLB (2752). Completed permits add value each time the property sells. Unpermitted work by unlicensed persons combines liability while reducing the homes salability.
Know someone planning to move? Realtor Pat Kapowich provides turnkey services including relocation, staging, market analysis and strategic planning. Call 408-2457700 or email Pat@ SiliconValleyBroker. com. Broker License #00979413