Question For Realtors
If a REA lists a house in a town/city that requires permits for certain home improvements, and there is such an improvement..aka deck, second or third bathroom, finished basement, sunroom, added garage, etc. and the seller honestly admits via disclosure that he/she never obtained permits and the requisite final approvals, is the house listed and priced with those improvments included or is it listed and priced as it legally appears on the tax records?
Last but not least, is it not misleading to list a home inclusive of improvements that legally don't exist?
I ask because a friend is searching for a home. This scenario has happened with three homes in a row....listed as having various features and when asked the sellers refused to get the permits (one tried to pretend it was not required).
He will now only view homes that his agent has verified either have no improvements that would trigger a permit, or has improvements that have all the proper documentation.
He is already in the hole for one home inspection fee and a septic inspection on the first house that was found to have illegal improvements. The second time he looked at a house, but had the REA check it out before he paid for more inspectionsÂ.again, no permits. Now he is gun shy, and won't even bother to look at a house until this is all found out up front.
I'm not clear how REA's get away with such misleading advertising as it such seems to be prohibited by the NAR Realtor COE.
Can anyone shed some light?