What happens to the title of a property when the owner builds an addition without a permit?

What happens to the title of a property when the owner builds an addition without a permit?

• A. Post a bond assuring completion as if a permit had been issued.
• B. Render the title unmarketable until permits are obtained.
• C. Pay a cash penalty to continue using the property.
• D. Sell the property "as is" without disclosing permit issues.

Answer: (B)

When an owner builds an addition without obtaining the necessary permits, it can lead to significant legal implications regarding the title of the property. The title may become unmarketable, meaning that it cannot be easily sold or transferred to a buyer without addressing the permit issue. This situation arises because prospective buyers and lenders typically require that all alterations and improvements to a property are legal and compliant with local building codes. If the property lacks the proper permits for modifications, it might not meet the standards set by governing authorities, leading to concerns about safety and legality. Consequently, until the appropriate permits are obtained and any necessary inspections are passed, the property’s title might indeed be viewed as unmarketable. This creates a barrier for future transactions, as buyers may hesitate to purchase a property that could present legal risks. Therefore, addressing the permit issue is critical to restoring the marketability of the title and ensuring a smooth property transaction process.

When an owner builds an addition without obtaining the necessary permits, it can lead to significant legal implications regarding the title of the property. The title may become unmarketable, meaning that it cannot be easily sold or transferred to a buyer without addressing the permit issue. This situation arises because prospective buyers and lenders typically require that all alterations and improvements to a property are legal and compliant with local building codes.

If the property lacks the proper permits for modifications, it might not meet the standards set by governing authorities, leading to concerns about safety and legality. Consequently, until the appropriate permits are obtained and any necessary inspections are passed, the property’s title might indeed be viewed as unmarketable. This creates a barrier for future transactions, as buyers may hesitate to purchase a property that could present legal risks. Therefore, addressing the permit issue is critical to restoring the marketability of the title and ensuring a smooth property transaction process.