El Cerrito homeowners: think twice before you do work without permits!

Today I heard yet another story that sent chills down my spine! Like the previous story heard about a week ago, this one involved an El Cerrito property that had recently sold. The new owners had taken out permits for some work that they wished to do on their new home. When the job, a small one in this case, was completed, the inspector was very interested in visiting the property. Once there, the inspector asked to see other parts of the home that had not been modified. Long story shorter, the new buyers were fined for all previous work that had been done on the property, some of it dating back decades, forced to redo work that could not be documented to be up to code, and charged penalties as well as current permit fees. They had done no work without permits themselves!

In speaking with colleagues about this case several points become obvious, and chilling:

• Cities are being hit hard by the decline in the economy, and see this as a quick revenue source. One number mentioned was $100K, as the amount the City of El Cerrito has collected so far this calendar year in permit fees for previous work done without permits.
• El Cerrito will not be alone in pursuing unpermitted work as a revenue stream. Alameda has had inspectors cruising open houses and broker tours for some time now.
• This could well be the precurser to requiring a whole-house inspection at point of sale, with an accompanying requirement that all aspects of the home be brought up to current code, regardless of the codes at the time the house was built. San Pablo already has a similar ordinance. I just returned from the NAR conference, where I heard from several agents who had whole-house inspection requirements in their communities.

Can you image what such a requirement would do to real estate in areas, such as Berkeley, Albany, Oakland and Alameda where the vast majority of the inventory was built pre-1940? We believe that we have low inventory currently. Imagine what a wet blanket such a requirement would be on the housing market! Just think what expenses would be required if all home owners were required to make their homes compliant to all codes before selling! I feel a very cold draft down my back!