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Why Do I Need A Permit - It's My House
The importance of permits to home improvements and ramification is not issued.

Staying on top of all the regulations that affect real estate is critical to me as a Realtor, and so glad our Broker invited San Ramon’s Chief Building Official to our office to review the topic of Permits for alterations, upgrades to your home. Why they are required, the ramifications of not getting permits and how does the City find out if something is not permitted.
Why Do I Need A Permit
Anything that may change the configuration to a home, such as additions, removing walls, plumbing, electrical, adding bathrooms, converting garages, etc. must meet certain codes for both safety and structural conditions. These regulations are first regulated at the State level, then down to the County and then to the individual City for enforcement.
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Ramifications of Not Getting Permits
If permits were not pulled for anything that required a permit and the City is made aware, then they have the obligation to investigate to determine if whatever was done is up to code. A permit at this time will need to be issued and if the inspector deems the work is not to code, and depending on the project, will make you the homeowner bring it up to code or take it out. Again, this depends on the scope of the project.
Find out what's happening in San Ramonfor free with the latest updates from Patch.
How Does the City Find Out About Unpermitted Work
This one is easy. Someone complains to the City. Could be a neighbor that you don’t get along with, the new buyer who finds out no permits were issued or someone from the City driving by your home with the garage door open and construction going on.
The City does not go looking for unpermitted work done to homes. Yet if they become aware must enforce the rules.
Disclose - Disclose - Disclose
As a real estate agent, I cannot emphasize enough to my seller clients, just disclose that you did not get a permit for any work that required the permit. You do not want the buyer to find this out after they move in as this is how lawsuits come about. If the buyer is aware, and decides to buy the home anyway as it with the unpermitted work, make sure you have a signed document that if for any reason the City cites them, the buyer will take on the financial burden to rectify the issue.
If you are not sure what needs a permit, check with your City permits division. Most Cities will have the items listed on their website. As the old saying goes “better to be safe than sorry”.