It can be tempting to buy a property by ignoring unpermitted work because of its appealing features. However, before you make a decision, you have to understand the risks you are about to take. Here is what you need to know.
Legal consequences
In most cases, a property that has unpermitted additions or modifications violates Indiana building codes or local ordinances of the town or city where it is located. Discovery of such violations by local authorities can force you to remove or correct the unapproved changes at your own cost.
Difficulty in resale
Resale value is one of the biggest concerns if you are planning to buy the property as an investment. Firstly, the potential buyers may be reluctant to buy the property from you. Secondly, having unpermitted work may reduce the property’s value. Lastly, if the buyer later finds out about the violation that you failed to disclose, they may pursue legal action against you.
Lack of insurance coverage
In the future, if an accident damages or destroys your property, and the insurance company discovers that the unpermitted work caused it, they may deny your claim. For example, if unpermitted electrical work causes a fire, the insurance company may refuse to cover the resulting damages.
How an attorney can help
The stakes are high if you are buying property, either for personal or commercial use. That is why you should acquaint yourself with the risks involved. With the help of an attorney who is experienced in real estate law, you may be able to make an informed decision about the property you intend to purchase.
