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Unpermitted work is supposed to be disclosed, however, if the seller doesnt know a previous owner did that work without the proper permits, then they are not liable for any undisclosed works.
Finishing a basement without a permit can have very stressful consequences and risks. Consequences of finishing a basement without filing for the necessary permits include; Legal Penalties: Legal consequences such as fines, citations, or even a court order to remove or modify the work are common.
Any person working within the city limits on any property that is not that persons primary residence who s, constructs, alters, or repairs a building or structure without the required permits or licenses in violation of City Ordinance 3392 will be subject to a $500 penalty and triple permit fee.
Failing to obtain necessary permits can be considered negligence. Homeowners can sue for negligence and seek compensation for: Property Damage: Any damage caused by unpermitted work. Injuries: Harm caused by unsafe construction practices.
You need to inform any buyer, however, that the work was done. It is not advised to sell the home without disclosing the unpermitted work as you will be at risk of a lawsuit and serious financial loss should it become discovered after the fact.

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ing to Texas disclosure laws, sellers are legally required to disclose any known issues with their property, including unpermitted work. If you fail to disclose unpermitted work done by previous owners, you could face serious legal consequences.
While you may be able to sue the seller for undisclosed defects in the property, as far as the government is concerned, if you are the owner of a property that has unpermitted work, you are responsible for bring the property up to codes and are liable for any fines.
When you sell your house, unpermitted work can be a big issue. It can make buyers nervous because they might be taking on the risk of future legal or repair costs. This can make your home harder to sell, reduce its value, or even lead to deals falling through.

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