Property purchase due diligence, what does this include?

[Nell Plotts]

Check with the county regarding any out-buildings (garage, shop, sheds of any type) that you can construct on that property.

[Hawk J]

Years ago, I was told by a contractor, "in Josephine County, you don't need a building permit for a shed if it's no larger then 10'x20'. To be safe, I would double check with the county in Grants Pass. Laws could have been changed.

[Larry Caldwell]

No, the building code hasn't changed. Any accessory building up to 200 square feet does not require a building permit. You could build a 10x20, 14x14, etc. and all it has to do is meet the development standards for your zone. Agricultural buildings are exempt from building permits, but have to be completely agricultural with no other use. Planning department approval is required. Buildings in commercial or industrial zones over 120 square feet require a permit.

[GrimmFan]

@StealthRabbit

Wow! You know your stuff.

I hope you could throw some light on my situation. I'm looking to buy a badly run down house, about a mile from Multnomah Village, being a 1st time buyer, I've no idea what is what. My plan is to tear down that house and build a duplex and maybe even put a tiny 200 sq ft house (on wheels, if necessary) next to my duplex. The realtor informed me that that property is zoned R7c (residential 7,000 base zone with Environmental Conservation and Environmental Protection overlay zones), what in the world does that even mean???

And what's your take on this?

The seller has a plan and has submitted the plan for permits. He wishes to sell rather than to complete the permitting and the building. If I choose to use the plan he already has, he would like to be reimbursed for the permit. The city of Portland will charge about $40,000-$42,000 to complete the permits.

What? $40k on permits alone? That sure sounds like a lot of money, at least to me. What would you do, SR? Walk away? Or is this the norm for someone who wants to do what I plan to do?

Do you also know:

1. The minimum house size restrictions in this part of town - if that house is not on wheels?
2. If it is on wheels, is there a limit to the number of days in a calendar year one is allowed to live in there? (I read that in Utah, it's unlawful to live for more than 45 days in a tiny house, wheels or not!)

@Larry Caldwell and others who knows what they are talking about, I welcome your views too, thanks![/b]

@Nell Plotts

My husband hyperventilates when he sees those homes to be remodeled for basement apartments in Canada.

Did your husband finally remodel your basement and turned it into an income suite?

Is DH your husband?

Please clarify, Nell, what do you mean by...

Thankfully the remodeler obtains permits and provides proper exits when he remodels but when DH sees that prospective buyers think the building already has a viable apartment shivers go down his spine.

[Larry Caldwell]

Building permits do not transfer to new owners. If you buy the property, you will have to start over with the permitting process. That may also include the plan check fees. You need to talk to the building department about this.

I don't know about planning approvals. The big money sounds like SDCs, (System Development Charges) which are levied by the planning department or public works, not by the building department. Once SDCs have been paid on property they normally don't have to be paid again. They become an added value to the property, and including them in the sale price is reasonable, though like all sale prices, subject to negotiation.

In this case, "due diligence" includes figuring out which expenditures by the previous owner were of value to you, and which were "money down a rat hole."