Moving from one state to another, how different...
 

are real estate laws? Are they much the same place to place? A friend is moving from North to South and is considering buying a property that has an uninspected addition (sellers told her). It is very nice although not totally up to code. Will she have a problem getting a mortgage? Thank you to anyone who knows about real estate laws.

Real estate laws and codes do vary. Some areas don't have local codes, but if she is buying in an area that does, she won't be able to get a mortgage.

...and if that's the case, the property will then be re-assessed to include the "improvements" thereby increasing property taxes.

Issues like building additions are regulated by local zoning laws, at least here in Massachusetts. I'm pretty sure that if any town around here found that you had an addition that was (1) built without the required permits and/or (2) did not meet local codes, not only would you not be able to get a mortgage, but the town could require that you either bring it up to code or remove it.

I realize she's moving *from* the North, but the point is that the buyer must get a good local real estate attorney to represent her interests -- and this often means NOT one that has been recommended by the seller's real estate agent!

...or in some communities public hearings are held to discuss whether a variance should be granted to the homeowner who has violated code (i.e. not obtaining proper permits). I have seen many a deck torn down because people thought they could build without filing a permit.

Anon is giving you the best advice - the buyer needs to find an attorney who will protect their interests.

The sellers told my friend that they were confused about needing permits when the work was done because a carport already in place was walled in to make a garage, and a deck already in place was converted to a screened-in porch. The contractor doing it said no permit was needed because the "footprint" of the house wasn't being changed. Then they found he was wrong, after the work was done. They did report improvments to the tax office and were not trying to get away with anything. Do people usually get fined or worse for such an infraction? I haven't heard of it. I hope my friend can buy this place since she really likes it. Thank you for your comments.

It sounds like a plausible story but in all honesty people do not file for a permit for one reason and one reason alone...to save on the permit filing fee (which is substantial) and the subsequent tax increase for the improvement/added value.

I am not an expert of real estate law. I am simply someone who has gone through the construction process and know what the codes are in my own community.

I would insist that the seller file all of the necessary papers - bring the house up to code, incur all possible fines/taxes before I would consider buying. But your friend must consult with a real estate attorney.

As was mentioned before, the worst that can happen is that the current owners would need to remove the structure - it can happen.

Different areas have different codes within each state.

I know here that you cannot occupy a dwelling unless it is minimum 12 feet off the ground.

If it isn't up to code here, it is illegal to occupy the building. She needs to check with the local city government.

It has nothing to do with real estate law but government building codes.

One last thing, if something isn't built to code, it is usually uninsurable. Not a good thing.

Gee, there are a few words missing in that first sentence, but you can get the gist.

caveat emptor.

As mentioned in some posts above, this is a building code issue (not zoning) managed by the incorporated town or the county (if in an unicorporated community) that the property is located in. Every community has adopted its own building code. Your friend could call the government entity and ask this question. Your friend should also consult an attorney who is familiar with the law in the community the house is located in, if determined to pursue this property. She should ask people besides the real estate agent for the name of a good attorney.

I'm curious about what was not up to code. Walling in a carport to make a garage probably includes wiring. Not having an electrical permit (and inspection) could be significant. Ditto for the deck. Did they put in wiring that can't be inspected without taking out walls?

A little care at the front end could save major, major trouble later, and provide peace of mind in the stress before closing. I think the sellers should be required to fix this as a condition of sale.

"people do not file for a permit for one reason and one reason alone...to save on the permit filing fee (which is substantial) and the subsequent tax increase for the improvement/added value."

Here are 2 more reasons: (1) Because they think the permit would not be granted due to inherent violations like non-allowable designs and (2) to avoid permit-related inspections that would ensure that plumbing & electric work is done by licensed professionals and the work is thus up to code. Bringing an addition up to code can require extensive work -- checking the plumbing and wiring can rquire that new walls be opened up.

No matter what, I would get a home inspection & make sure the inspector knows the areas of concern. We looked at a country home that had originally been a 1 story home. The sellers had added a 2nd story to it ...without permits or inspections by code people. When we expressed concern to their agent (who happened to be the seller's father) he said, "this is the country & permits aren't needed". WRONG!! Needless to say we hightailed it from there & never looked back.

I would also be concerned what other "oops" there might be. My advice is pass on this one or at least wait for the inspector's report. A few dollars up front for an inspection could save major dollars down the road.

I would also get a home warranty from one of the national services. It covers many potential problem areas. Have the seller pay for one since they neglected to have it done by the book in the first place. We paid for one when we sold our house even though there were no problems that we knew of.

A couple of STRONG caveats!!!:

1. I can't imagine not getting one's own inspection before buying -- and some lenders will insist on it. I realize that leelane911 didn't mean a buyer's inspection in her OP, but certainly if it's uninspected by building code inspectors, she should be very wary about what kind of rat's nest she might be buying and should get her own inspection for sure.

2. Insurers who deal in home owner's insurance are getting <i> extremely &lt;i/&gt; hesitant about insuring just about anyone. Some are cancelling people for making more than one claim, or even for inquiring about a &quot;what if?&quot; situation. Realtors are getting nervous about this, because if a buyer has ever had an insurance company cancel on them, they may not be able to get a new policy on their next house because the lender won't mortgage an uninsurable house. CAVEAT!
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Real estate laws vary tremendously from state to state, town to town and from neighborhood to neighborhood.

For instance - the area my parents live in allows only one family houses. Where my brother and sister in law live you must have sufficient garages or driveways space for all your vehicles - since they can't be parked in the street overnight. A friend of mine lives in an area where certain types of shrubs are outlawed.

You friend needs a local real estate attorney - but wouldn;t they need one for the contract/closing anyway?

My sister passed on 6 houses over the last 8 months all because of code violations or illegal additions. If it were me, I would pass.

Your other choice is to tell the seller they have to bring it up to code - and have it inspected by someone of your choice - before you will buy. And make return of your downpayment part of the contract - and also contract contingent on your obtaining a mortgage.

Building inspectors can tell you about the condition of the property, but they are not qualified to tell you whether everything is up to code -- that's not their job. Every town has its own building code and the building inspectors serve many towns. They also obviously don't know the history of permitting, who did the work, what's inside walls where they can't see, etc.

To ensure that the building is up to code, you need to contact town hall or whoever sends out property taxes and make sure that the decription they have matches the property as it now stands. They are probably the source for the building's permitting history, too.

IMHO, the seller should provide assurances about permits and code BEFORE any offer is made; around here at least that would preceed any inspection conducted by a representative of the buyer.

We moved from &quot;North&quot; to &quot;South&quot; and did everything the same as we did when moving in the North.
Inspections, real estate attorneys, the works.
Here in Florida, there are plenty of real estate attorneys who take care of transactions for those who buy second homes here..as GoT said, if it is not to code, it will have to be brought to code, inspected and insured in order to live there (my daughter works for real estate attorneys :) I know more about it than I care to)
Every seller has a great story to explain things that are not quite right with the house they are selling. But the buyer will be stuck with whatever problems once they buy that house!