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Resources: Newsletter Articles: Permits

If one of your New Year's resolutions is to do some home improvement projects, here is useful information about the permit process.

Permits are city documents authorizing the start of construction or remodeling. They are part of a documentation and inspection process that ensures that all buildings meet minimum standards designed to protect occupants and neighbors in everyday living and in case of emergencies or natural disasters.

Here are the four types of permits which may be required:

  • Building permits, required for new construction, alterations, demolition, or repairs.
  • Electrical permits, required for new installations, upgrades, and repairs of any electrical wiring and electrical equipment damaged by fire or accident.
  • Plumbing permits, required for any plumbing, gas, or drainage piping work.
  • Mechanical permits, required for heating, venting, or air conditioning equipment (HVAC).

Contractors must have a current City Business License and current State of California Contractor's License. You can check the status of a contractor's license online, at http://www.cslb.ca.gov/. If the contractor uses employees, a Certificate of Workers' Compensation Insurance must be on file with the City.

Some building departments strictly enforce the permit process. Piedmont home buyers are notified at the time of purchase that "if there was construction done on the residence without the required approvals, you as the new owner will become responsible for code compliance." Buyers are strongly encouraged to review a home's permit history, as no new permits will be issued "until the illegal construction is cured."

Homeowners and contractors are sometimes tempted to skip the cumbersome permit process, due to additional time and cost. Fees are charged when permits are issued; the value attached to the improvements can trigger an increase in the assessed valuation of the property and an increase in the property taxes. The inspections ensuring that work is done correctly and in compliance with relevant building codes can affect project schedules.

In one case, an addition done without permits increased the square footage of a home for sale. Because there were no permits, the appraiser did not give full value for the improvements, and the house appraised for significantly less than expected. To keep the sale from falling apart, the sellers obtained permits... paying penalties. Walls had to be opened to expose plumbing and electrical before the inspector would sign off. The sellers ended up spending more than they would have had they had obtained permits.

Your city can at any time choose to enforce their permit process. If they do, and you have made substantial improvements to your property without adhering to the permit process, you are potentially leaving yourself open to penalties, fees, and/or having to bring your home up to current code compliance. Additionally, when you decide to sell, you may face tough and costly negotations if the buyer is concerned about having finaled permits. To obtain information about a home's permit history, visit the local building department and ask to see a copy of the past permits on the property; the cost shouldn't exceed $30-$50.



Sherry Benninger

sherrybenninger@grubbco.com

The GRUBB Co., 1960 Mountain Blvd., Oakland, CA 94611

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