House we bid on missing a permit

[k cabak]

What is the name of your state? Minnesota
The sellers of a house we bid on never had a permit issued for the finishing of a basement. What are the potential consequences of not having the proper permit? The finished basement already showed up in the tax assessment so the value is already figured into the property tax.What is the name of your state?

[mark65]

I live in California and I had exactly the same situation.
I was interested in buying a house ( 3 bedroom / 2 bath ).My real estate agent advised me not to buy it !
One of the bedroom was a converted garage done without permit and one of the bathrooms was an addition without permit as well.
Yet the assessor's legal description of this house was a 3 bedroom/2 bath not a 2 bedroom/onebath.
Bottom line : The assessor's description does not mean a thing. They just want more tax money.
If a buiding was done without proper permit, the city can ask you at any time to tear it down or modify it up to code ( can be VERY costly ).
I would just stay way from it !

[pojo2]

I would just stay way from it !

Horsefeathers!

If you love the house and the sellers want to sell the house then this is still doable you just have to do a little research FAST. Find out if it is possible for the CURRENT owners to apply for the permit now and pay the fees/fines and what those fees might be. If to high then you know they either will or won't do it based on your negotiations. Sooner or later they will have to fix this problem to sell the house.

Why lose a home you love, if you do, without finding out if the problem is rectifiable for a small amount of money? Basements are a way of like in this neck of the woods and are finished without permits everyday of the week so just do some checking BEFORE knowing this would be a nightmare.

Realize I have given a very simplistic reply and it may not be so simple.

Actually some of this might even depend on that purchase contract you signed and the contingencies and clauses therein. If you do not have an agent then get an Atty to go over everything with you.