Plano Garage Conversion w/o permit- Just went under Contract as Buyer. Help Needed! (Dallas: appliances)

[everydayhubris]

I just had an offer accepted on a home in Plano where seller disclosure sheet which was just released today stated garage conversion completed into game room and bathroom remodel, renovations without a permit. This added an additional 300sq ft. Can I seek a retroactive permit and will I be liable or Seller for back taxes?

New to texas so outside of my element. Just don’t want to get clobbered on this. Thanks in advance for any insight and advise.

[numbersguy100]

If you let your option period expire without having access to seller's disclosure, you have a really bad realtor. In Dallas, I'd say you could probably continue the status quo with fairly low risk unless you anger a neighbor and they turn you in. No clue how diligent Plano is on this kind of thing though.

[escanlan]

Originally Posted by everydayhubris

I just had an offer accepted on a home in Plano where seller disclosure sheet which was just released today stated garage conversion completed into game room and bathroom remodel, renovations without a permit. This added an additional 300sq ft. Can I seek a retroactive permit and will I be liable or Seller for back taxes?

New to texas so outside of my element. Just don’t want to get clobbered on this. Thanks in advance for any insight and advise.

Once you own the home you can request a permit for the renovations. It will not be retroactive and what is there now would most likely have to be installed per the currently followed building codes. The City will have the right to demand you remove fixed components (for example gypsum board also called drywall) if they determine they need to see what was done. There are other possibilities that were not accounted for during the conversion that could also cost money to bring the conversion to current building code compliance. The City can demand you bring any incorrect work up to current standards. Obviously you will be responsible for the cost of all of this as you already own the home.


Another aspect of the renovations is if Plano even approves of garage conversions. Some cities are banning these and if they do not approve they might have the right to demand you restore it to its original condition.



The tax issue is not clear however most likely increases would start at the time of the permit unless they have information on when exactly it was performed and choose to seek unpaid taxes. Again since you own the home you will be responsible to pay all taxes including back taxes, interest, fines, etc.


What I would advise you to do is call the City of Plano Building Inspections Department (https://www.plano.gov/217/Building-Inspections) and explain to them a conversion has been performed and ask what you would need to do as a new owner to apply for a permit to correct this deficiency and what you would be in for in the process. They can best describe it.


Also you may want to use eTrakit on that page above to see what permits have actually been applied for and compare that to any other work performed on the home to ensure that is not the only permit that was not applied for. For example gas water heaters are a significant safety issue and just about all municipalities have required permits for replacements for a long time. So if you were for example to see a two year old water heater and no permit then another permit issue exists. Again Plano Building Inspections Department can tell you if something did require a permit for the work and quite a bit does in Plano.


Also do have a home inspection and make sure your Inspector does note the make, model, serial number, and manufacturer date of all appliances and systems. This can help you see if something was replaced and compare it to the permits that might have been required for its replacement.

[Rakin]

Originally Posted by numbersguy100

If you let your option period expire without having access to seller's disclosure, you have a really bad realtor.

In Dallas, I'd say you could probably continue the status quo with fairly low risk unless you anger a neighbor and they turn you in. No clue how diligent Plano is on this kind of thing though.

If a Buyer does not receive a Sellers Disclosure from the Seller, the Buyer may cancel the contract up too the day of closing.

And I agree with your 2nd sentence.

How old is the work done ? If it was done many years ago, one could just let it be. They just enclosed the garage, no baths added. The bath (inside the home) remodel is commonly done without permits - if it's just a remodel and not a bathroom addition. Enclosing garages is very common in older smaller homes.

[escanlan]

Originally Posted by Rakin

If a Buyer does not receive a Sellers Disclosure from the Seller, the Buyer may cancel the contract up too the day of closing.

And I agree with your 2nd sentence.

How old is the work done ? If it was done many years ago, one could just let it be. They just enclosed the garage, no baths added. The bath (inside the home) remodel is commonly done without permits - if it's just a remodel and not a bathroom addition. Enclosing garages is very common in older smaller homes.

Yes they are commonly done without permits as well as other permit required work. In Plano they do require permits for bathroom and kitchen remodels.


https://content.civicplus.com/api/as...a27?cache=1800

[everydayhubris]

Thanks all for the thoughtful responses and feedback. It has been helpful. If anyone else has any recommendations on the best approach to protect myself in this transaction I’d greatly appreciate it!

[escanlan]

Originally Posted by everydayhubris

Thanks all for the thoughtful responses and feedback. It has been helpful. If anyone else has any recommendations on the best approach to protect myself in this transaction I’d greatly appreciate it!

A very important point to consider is your "Option Period" if you requested and paid for one. During that option period you have the ability to cancel the transaction for any reason whatsoever and lose only the option fee if that is how your contract was annotated. That means if you wake up one morning during the option period and have a bad hair day and want to cancel you can. So make sure you read and understand your offer contract. If you have questions on it your Agent should be able to provide you answers.

[Rakin]

Originally Posted by everydayhubris

Thanks all for the thoughtful responses and feedback. It has been helpful. If anyone else has any recommendations on the best approach to protect myself in this transaction I’d greatly appreciate it!

Do you not have a decent RE Agent that can provide you this advice ? It's their job.