How to Sell a House With Unpermitted Work in Colorado Springs

A recent case from the state of Oregon serves as a perfect example of how not to disclose an unpermitted addition. In this case, the buyers knew about previous additions to the house and disclosed that information to their lender. However, they did not verify any permits for those additions. Instead, they relied on the fact that no one had complained about them before, and therefore assumed everything was legal.

Unfortunately for everyone involved, while they were in escrow a city inspector noted several un-permitted issues with the home’s structure and ordered it vacated within five days until all code violations were resolved. The bank then demanded its money back from both sets of sellers and buyers or it would take over ownership of the property.

Stop worrying! We will explore how to sell a house with unpermitted work in Colorado Springs.

Retroactive Permitting

Another option is to sell a home “as is”—that is, without the violations being addressed. The new owners will be responsible for correcting any problems that may arise from these work and code issues. But selling as-is can be risky in today’s market, so you should be sure to ask prospective buyers what they think of your decision before putting it in writing. You’ll likely need to disclose that there are unpermitted or incomplete building projects on the property when selling a house with unpermitted work.

The final option is to rent out the home until you’re able to make the necessary repairs and additions.

This is a big decision, so don’t rush into it and weigh all of the options before buying that fixer-upper. HBR Colorado has a broad selection of homes to look at when you’re ready to buy or sell. To see what we have available, visit our website now to browse listings in your area. Or contact us today for more information about our services. We are here willing and able to help you with whatever your real estate needs may be.


Why a buyer should beware of purchasing an unpermitted house: First, most banks will not provide a home loan if the property doesn’t meet local building codes. That means no mortgage, which means no sale of the house. Second, maintaining a home with substandard work is expensive. Substandard electrical wiring is one example; that can be costly to repair and replace. Third, unpermitted work may have structural issues and safety concerns that pose hazards to residents when living in the property or visiting it for other reasons.

If you have already bought such property and notified your lawyer at once, he will contact the local municipality to help arrange to legalize these illegal structures. Some properties with illegal additions do not receive full approval even after all this effort. Experts recommend that buyers who fail to get full approval nevertheless insist on driving down their asking price significantly as any percentage of value lost because of this problem might translate into huge savings when you resell later.

HBR Colorado

We buy houses in the same condition as you see them and with all problems, including illegal developments like outdoor toilets, storage sheds or garage without permits etc. Once paid for a house, we get rid of these illegal/unpermitted devices immediately.

A lot of people are not aware that Colorado law obliges sellers to inform buyers about any unguarded property rights on the land (whether they are recognized by courts or not), any unauthorized construction works (regardless of their stage of completion) – such as basements, swimming pools, out buildings, etc., if there is no proper title deed for an apartment (for example one handed down through inheritance).

Call HBR Colorado at (719) 286-0053 or send us a message today!


Entrepreneur, online marketer, real estate investor, and owner of the Sell Your House To Tactical Investing Inc. franchise

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