Home Sale Non-Permitted Work Legal Claim

Overview

The client is a home owner who purchased a second home, not knowing that there was non-
permitted construction on the home prior to his purchase. The purchase and sale
documents did not disclose this non-permitted work of a second kitchen, a full bath, a laundry room, and over 1,000 SF of a lower area, including a separate entry.
Furthermore the Seller indicated that the lower area was all inspected during the initial
construction permit phase, and that the neighborhood association allowed it to be a rental.
The sale went though, and the lower area was rented out. The same renter had occupied
the rental for several years as their rental payments supported the client’s mortgage
payments.

Problem

Several years later, a complaint was filed with the City by a neighbor against our client for
alleged non-conforming use; i.e. the rental. This neighbor also alerted the neighborhood
association causing further distress for our client. The City Property Compliant Division
issued a non-compliant code violation for the non-permitted work along with a $700
monthly penalty fee until the home is brought into compliance. Our client was compelled
to file a complaint against the seller for the non-permitted work, while attempting to retain
the ability to allow the rental of the property.

Solution

Hartman Strong Hartman was retained to 1) determine the extent of the non-permitted
construction, 2) work with the City permitting division to re-permit all the work as needed
to be approved, and 3) address the client’s ability to continue to allow the rental of the property.
We retained electrical, mechanical, and plumbing contractors to inspect the lower area to
determine if the non-permitted work was code compliant. All of the contractors determined
that their areas of work were not installed properly. Hartman Strong Hartman oversaw the
mitigating work and managed the City permitting processes until all work was approved.
Hartman Strong Hartman worked with the City enforcement division on a code-section that
did allow a rental in a single-family home. We also reviewed the neighborhood association
HOA documents advising the client on the continuing ability to rent the second home.