How Permit Reports Can Help Your Next Real Estate Transaction
21
How to use a permit report to protect your next transaction. Copyright 2013, Permit Report, LLC
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If you are looking for an idea to stand out from the crowd on your next transaction, consider using a permit report to disclose all work done on the property. Permits are required for structural, electrical, plumbing and other modifications to properties within city limits. Later, when property changes hands, proof that such work was in fact permitted must be reported on the Transfer Disclosure Agreement. Unpermitted work can lead to headaches for everyone. For the seller, missing permits reduces the value of the property. Buyers, on the other hand, may have trouble securing financing. Some lenders will only finance a portion of the property if the buyer cannot produce certain permits. Similarly, work not completed to code can result in significant penalties for the owner. Typically, buyer and seller agents will request reports on behalf of their clients. Inspection companies, appraisers and real estate investment trusts (REITs) can also take advantage of The Permit Report's research acumen. A permit report might contain any of the following: • Building Permits • Certificates of Occupancy • Mechanical Permits • Electrical Permits • Plumbing Permits • Grading Certificates and Permits Open Violations of Record A Permit Report can be done by yourself by contacting the City or County or you can purchase one at PermitReport.com. The Permit Report has numerous resources at its disposal, including the City of Los Angeles microfiche collection. Reports are delivered to clients online in PDF format, ensuring fast and efficient processing. Rush services are available so that transactions will not be held up while clients wait on reports.
Transcript of How Permit Reports Can Help Your Next Real Estate Transaction
How to use a permit report to protect
your next transaction.
Copyright 2013, Permit Report, LLC
• Mike Robinson, CDP,
President of Permit
Place and
PermitReport.com
• 15 years a developer
• 3 kids.
• I love permits!
Copyright 2013, Permit Report, LLC
• Best practices
• Pitfalls
• What is Permit
Report?
• How can PR help?
• Sign up
• Sample
• Review
Copyright 2013, Permit Report, LLC
•Subject property is fully described
•Physical condition disclosure is accurate
•Disclose any additions or known code
violations.
•Work and violations stay with the owner.
Copyright 2013, Permit Report, LLC
Additions and other forms of
improvement:
•Go to the source (City/County)
•Verify all work is permitted with respect
to valuation
•Alert all parties of unpermitted work and
reflect findings in valuation or
negotiations
Copyright 2013, Permit Report, LLC
Copyright 2013, Permit Report, LLC
Copyright 2013, Permit Report, LLC
• Ensure your client is protected when you obtain
copies of issued building permits and certificates of
occupancy
• If a permit has not been issued verify the status or
existence of a building permit application
Copyright 2013, Permit Report, LLC
Getting proof that a permit has been
issued greatly reduces risks for the buyer,
the seller and anyone in between.
Copyright 2013, Permit Report, LLC
• Compliments state mandated
transfer & disclosure
requirements
• Confirms legally permitted
additions & ensures work is to
code at the time the permit was
issued
• Mitigate risk of unexpected
permitting and code violation
expenses after a transaction
close Copyright 2013, Permit Report, LLC
• Contact your local city building department first.
• If they do not have the documents then contact the
county.
• If no one has the documents, then disclose it.
Copyright 2013, Permit Report, LLC
• No uniform code for preserving building documents
• Cities incorporated but may have not transferred all
the documents.
• Loss from fire, water, earthquake damage.
• Poor records management.
Copyright 2013, Permit Report, LLC
Copyright 2013, Permit Report, LLC
• Address(es) and parcel number
• City & County
• Idea of what type of work was done
• Address and street direction
• Parcel number is correct
• Type of document/permit
• Date of Permit Relative to work
Copyright 2013, Permit Report, LLC
• Working with government
agencies is difficult and time
consuming when retrieving
information and records
• Steep learning curve for research
and document storage methods
• Long lines and waiting
Copyright 2013, Permit Report, LLC
• Permit Status
• Correct Address
• Parcel Number
• Use
• Scope of Work
Copyright 2013, Permit Report, LLC
•Order online
•Define specific records requests
•Receive Permit Report Electronically
•E + O insured document
•A Permit Report reduces potential
disclosure risks
Copyright 2013, Permit Report, LLC
•Thorough due diligence
•Hard evidence & facts
•Disclosures that are backed up
•E&O insured document &
disclaimers
Copyright 2013, Permit Report, LLC
• Sewer Research
• Zoning Research
• Geo/Soils
• Open Violations
• Affidavits
• Rebuild Letters
• Lot Line Adjustments
• Board Files
• Commission Files
Copyright 2013, Permit Report, LLC
We’ve Got You Covered
Copyright 2013, Permit Report, LLC
