Just learned we have an un-permitted swimming pool! (Austin, Cedar Park: lawyer, home)

[CarnivalGal]

Originally Posted by Houston3

What about the house that I built in the county and NO permits were required at all. Does that mean that the insurance company does not have to pay if I have a claim because I have no permits?

If you are not required to have permits for the work, then of course not. But if you are required to have permits, and fail to get them, then they may be an issue.

It makes sense. If you convert your garage into a den without a permit, run electric in there, then have an electrical fire down the road, you can't really blame the insurance company for not paying. The fire may very well have been the result of improper wiring. Had it been permitted, it would have been inspected. Not that inspection catches everything, but it does catch a lot.

Basically, you need to just read your insurance policy. Somewhere in the 150 or so pages, it probably makes mention of this.

[CarnivalGal]

Originally Posted by Houston3

I've never had my insurance company ask to see a permit before paying a claim.

Depends on the claim. They also pretty much have access to all that information; they wouldn't need to ask you for it. When you initially got your policy, they gathered information about your home. If that information has changed, and you have not told them about it (i.e. it now has 4 bedrooms instead of 3), they will not cover certain things because that is not the same property (technically) that they agreed to cover. If you do tell them about it, they are going to ask for the plans and check with the county to see that the permits were rec'd. It may change the value of your home and/or cost of your policy.

[CarnivalGal]

Originally Posted by Houston3

I've never had my insurance company ask to see a permit before paying a claim.

Also wanted to add that if you have ever tried to buy a house that had unpermitted work done on it, you know that most of the time they will refuse to insure it.

I am really surprised the original poster's insurance (or the county) didn't pick up on the pool issue when they bought the house.

[atlanta hope]

Originally Posted by mm57553

Also wanted to add that if you have ever tried to buy a house that had unpermitted work done on it, you know that most of the time they will refuse to insure it.

I am really surprised the original poster's insurance (or the county) didn't pick up on the pool issue when they bought the house.

My house had a major addition that was not permitted when we bought it and we had no problems getting insurance...

[CarnivalGal]

From just the first of many articles that came up on a Google search.

1. If you ever experience a claim on the home with your insurance carrier, especially if it deals with the illegal addition, then your insurance carrier may refuse to cover the claim as the home has had improperly permitted additions, changes, modifications to it.

2. If the local taxing authority discovers the changes and determines when they were made they might assess you retroactively for the amount of taxes, penalties and interest they could have collected.

3. If the local building department discovers the illegal additions (the taxing authority will advise them if they find it) then you may be subject to penalties, potentially have to remove it or at least parts of it for inspections, etc., etc.

4. If in the future your mortgage company discovers that you have illegal additions, and that you were aware of them, they might also have methods of redress to prevent any issues with the loan such as prematurely calling in yuor loan with an immediate payoff demand. The mortgage company is not going to want to expose themselves to potential future liabilities and have many avenues of redress to prevent them of which this is one.

5. If the illegal additions violate local zoning ordinances, setback requirements and/or extends onto your neighbors property then your title insurance company is most likely not going to cover this situation either. It can result in you bearing the full cost of rectifying the problem.

6. If your illegal addition causes your neighbors any problems, or your relationships with your neighbors sour, then they can "drop a dime" on you to the local building department and get the ball rolling for any/all of the above to occur.

7. If you are lucky to not experience any of the above and try to sell the home later it may then be discovered and cause you significant grief in the sales process. First off you know it is an illegal addition and will have to disclose that. Even if you don't and the new buyer discovers it prior to closing and backs out you now can not avoid disclosure. Also when it is discovered any of the above actions can again be started.

If you know or suspect a home has illegal additions to it then you should perform additional due diligence before your option period expires. It is a simple thing to visit the local building department and check the history of the home for its original build size and ANY permits that may have been requested for additions, major upgrades, modifications, etc.

Sellers are required to disclose these things but Seller Agents are not required to research a home to make sure the seller tells them the truth when they sit down to fill out the foreclosure papers when listing the home. If you read the MLS terms I believe it also states that what is listed is not guaranteed to be what is actually there. There is generally a statement that says:

"All information provided is deemed reliable but is not guaranteed and should be independently verified."

Don't expect your Agent or the Seller's Agent to provide you reliable information in regards to this issue! They are protected by their contract with you, the above MLS statement, the disclosure notice improperly filled out by the seller and a whole host of other barriers to protect themselves. Agents are in the business of getting people to sell and buy homes and are unfortunately not REQUIRED to specifically perform these types of checks for their clients, whether a buyer or seller.

[orbius]

This is the type of thing where if you approach city hall it can take forever and often end up in the wrong result. But if you can find a lawyer with connections in the city you can get it resolved almost immediately. Who that is I dont know but in this sort of case being willing to put up some cash to the right person to get this thing resolved is really worth it.

[BentBow]

Originally Posted by orbius

This is the type of thing where if you approach city hall it can take forever and often end up in the wrong result. But if you can find a lawyer with connections in the city you can get it resolved almost immediately. Who that is I dont know but in this sort of case being willing to put up some cash to the right person to get this thing resolved is really worth it.

Yes, this city is about as corrupt as they get.
All it takes is cash and you can do pretty much what you wish around here.
Cash is King in the new Progressive Austin.

[ChazDMac]

Call Austin Permit Service 512-474-4555, they are very cool folks who will know what to do...

[Pamalu]

We just purchased a home in Cedar Park where this wasn't disclosed to us. Wondering if that land controller that used to be a city inspector is still around? The lawyer wants $3500 to start . I have cancer and my husband is working like a dog so we can try to afford treatment!!! We only searched for a home with a pool so I could get the exercise I needed. Total mess. We've been at this for almost two years and the statute is almost up and we've had no luck trying to get the easements involved released so far. Any help and advice would be great.

[clarksvillemom]

you might qualify for legal services - Legal Aid, Texas Rural Legal Aid, Travis County Bar Assoc. I also know a property lawyer who might be a lot cheaper - Kim Lowe The Law Office of Kim Lowe, P.C. - Home - Austin, TX she's the kind of person who will talk or email and at least give you some good ideas, even if she can't represent you