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Homes and Land in Sunny Sequim, Washington

Homes and Land in Sunny Sequim, Washington

Sequim's No.1 Buyer's Agent Where Knowledge & Experience Count.

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Email: ChuckMarunde@gmail.com

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125 Olympic Ranch Ln, Sequim, WA 98382

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What If The House I Want to Buy Does Not Have a Building Permit?

by Chuck Marunde / Wednesday, 29 July 2015 / Published in Buyer's Agent, Traps for the Unwary

Is a building permit important? What if the home you want to buy does not have a building permit? A couple arrived in Sequim to buy a home, and they found the perfect home and property in a peaceful location. They were so excited. Their buyer’s agent told them it did not have a building permit, but she told them it would be easy to get a building permit after they purchased it. All they had to do was fill out the application, staple a notice on a tree, and pay a small fee, and Voila! the Clallam County Building Department would issue a building permit. This is what I call a trap for the unwary buyer. Perhaps this article should be entitled The Building Permit Nightmare.

Building Permit

Do You Need a Building Permit?

You might want to know how someone could buy a home and get a loan when the home doesn’t have a building permit, which means it also has no occupancy permit. Appraisers don’t automatically check a building permit file at the local county office. Apparently they are not required to by law or by the appraiser’s code. That’s not a surprise, because they are also not required to do a septic inspection, or a home inspection. The appraiser’s job is to see to it that the home is structurally sound, and so they do a visual inspection. If they see something that is a red flag, they investigate further.

The appraiser’s employer is not the buyer, although the buyer pays his fee. His employer is the lender, and his primary job is to make sure the lender’s loan is secured sufficiently. So the appraiser is looking at the building integrity and the value. Based on the appraisal report, if the lender feels their loan to value ratio is good, and the house is structurally sound without serious issues, the appraiser has done his job, the loan is approved, and the buyer closes on the purchase.

This means some appraisers may feel it is necessary to actually check the county building department’s permit file, and some will not. If the builder of a home never obtained a building permit, and the appraiser does not check the file, the issue never comes before the loan underwriter. A buyer could buy a home, obtain a loan, and close and never know their new home is not permitted . . . until they decide to sell it someday. And here’s where the nightmare begins.

Building Permit Nightmare

If the new buyer’s lender’s appraiser checks and finds out the house was never permitted, the new buyer’s lender’s underwriter could refuse to fund the loan. This means the homeowner can’t sell his home. Now the seller is in a nightmare scenario!

So what is the lesson here for buyers? There are two, and both are extremely important. Lesson number one is make sure that the home you want to buy has a building permit. You can certainly buy one without a permit if you have cash, but the issue may come back to haunt you when you sell. Lesson number two is simple but no less important. Hire a real estate agent who is educated, experienced, competent, professional and honest.

Possibly Related Posts:

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About Chuck Marunde

After practicing real estate law for 20 years in Washington, Chuck opened iRealty Virtual Brokers covering the Sequim and the beautiful Olympic Peninsula. Chuck is the author of numerous magazine and Internet articles with a primary focus on real estate. He is also the author of over a dozen books, mostly about Sequim real estate. Chuck is a photographer, videographer, and Registered FAA Drone Pilot. Chuck has combined his love for real estate and technology to create a growing Internet presence in his market, and enjoys building his websites and blogs, including SequimBlog.com and Sequim4Sale.com and LuxuryWaterViewHomes.com. Chuck has degrees in Economics, Law, and Education.

1 Comment to “ What If The House I Want to Buy Does Not Have a Building Permit?”

  1. Vancouver says :Reply
    July 3, 2018 at 10:14 pm

    You should take part in a contest for one of the finest blogs on the net. I’m going to recommend this site!

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Chuck E. Marunde, J.D.

Sequim Buyer's Agent
(Atty Ret.)
Founder and Broker of
Sequim & Port Angeles Real Estate dba iRealty Virtual Brokers
125 Olympic Ranch Ln,
Sequim, WA 98382
(360) 775-5424
ChuckMarunde@gmail.com

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From Los Angeles

It's rare, but once in awhile life provides the perfect collaborator for an important endeavor such as buying your new home. For me that person was Chuck Marunde. His two decade background as a Real Estate Attorney, his prolific career as an author of articles and books on Real Estate and his forthright and moral character made choosing Chuck a no-brainer. Chuck is dedicated, thorough, incredible at the negotiating table, knowledgeable about all local laws & regs but, most importantly, Chuck loves what he does. And what he does is find his client the perfect property. Chuck isn't about making the sale, he's about making the sale that is OPTIMUM for his CLIENT and this makes Chuck a rare bird indeed. I love my new home in Sequim and I am indebted to Chuck for making it happen. Kevin E.

From Seattle

I’ve had the pleasure of working with Chuck over the past three years in selling my parent's estate. It was a tough time to sell during the housing recession, but Chuck always kept things on the positive side. With his real estate law background, he offers sound, practical advice. He helps you along with the process using discussions and reason, rather than opinions and speculations. If Chuck doesn’t know the answers, he will get them for you. In several instances, Chuck took the initiative to meet with county officials to get up-to-date facts about zoning and regulations. I was always impressed with his company’s tech savvy communi-cations and internet presence: weekly email updates, blogs, videos, links, Linked-in networking, etc. He is truly pioneering the future of buying & selling real estate. Brian M.

From California

"Andy Romano is a successful motion picture character actor with over 40 years in 'the Biz.' Mr. Romano has a home in beautiful Santa Barbara, California, but he chooses to live most of the time in Sequim, Washington on the Olympic Peninsula in the great Pacific Northwest. Why? In his own words, 'Because it's even more beautiful and surrounded by more beauty in this incredibly peaceful and quiet place. With respect to real estate agents or brokers, well my friend Chuck Marunde, owner of Sequim and Port Angeles Real Estate, is hands down the best there" Andy R.

Intro by Chuck Marunde

From Florida

We do our homework for the task at hand and we look for and expect to enlist partners that do the same. It was our good fortune to select Chuck Marunde of Sequim and Port Angeles Real Estate to represent us as a buyer's broker in our search for a home in the Sequim/Port Angeles area. Chuck's site is all encompassing and super fast compared to many others, he knows the market at every conceivable level and his guidance through the process of selecting and purchasing a home is priceless - above and beyond that of anyone with whom we have ever worked. Add to all this his 20 year background in real estate law and you have discovered a superb asset in the adventure of purchasing a home. Greg and Marilyn

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