Failure to get a permit before finishing your basement can lead to several consequences, one of which includes your house failing at future inspections. A permit also ensures that the renovation job is done properly.
Now, let’s talk about the consequences and risks that can happen if you fail to secure a permit for your basement finishing.
Is Permit Needed To Finish A Basement?
Technically, finishing a basement requires securing a building permit, but the decision will still depend on the regulations in your state. You can even be subjected to paying a fine or a penalty if you don’t have a permit. With this, it’s recommended that you get a permit when you plan on having your basement finished.
If the renovations are done without a permit, at least get a retrospective permit and apply for inspections. In the worst-case scenario, you can face heavy fines and open your walls for inspection. It can also lead to compromising your insurance, safety, resale value, and mortgages.
Is It Illegal To Work On My Basement Without A Permit?
You have to understand that working on your basement without a building permit is violating a bylaw, a local law enforced by your municipality. Because you are violating a bylaw, not securing one during your basement finishing is considered illegal.
Municipalities formulate this bylaw for a purpose, to ensure safe practices during home renovations. When these regulations are not followed, there can be penalties.
Consequences Of Finishing A Basement Without A Permit
To help you understand, we have listed common consequences of finishing a basement when you don’t have a building permit.
Paying violation fines is a common penalty for people without a permit. Generally, municipalities issue these fines together with an order to remove and stop all unpermitted work. The amount of the violation fines depends on the state where you live.
If you are a first-time offender, several municipalities allow submission of your retroactive permit application together with the issued fine, which is better than tearing down the unpermitted work. However, the permit must first be approved with the necessary site visits completed before the work on renovating your basement can continue.
Dismantling Of Already Accomplished Works
Another consequence is issuing an order to return your finished basement to its old or former condition. You are required to remove all accomplished work even when the renovations done on your basement are done.
That being said, you have to note that should you dismantle all completed work, you are responsible for all charges needed for your basement to return to its old appearance. Comply if you don’t want the jurisdiction issuing more fines and more drastic legal actions.
Decrease In Property Value Assessment
Doing home renovations without a permit can decrease your home’s resale value. Since there was no permit issued, no inspector approved that the work done on your basement is safe and correctly done, jeopardizing the safety of the people living in your house and lowering your home’s value.
When you plan to sell your house in the future, potential buyers can ask for permits. If you can’t present anything, it might lead to the buyers backing out of the deal.
While this is not a direct consequence of failing to get a permit for your basement renovation, it is still feasible. Your house can be condemned, especially when major damages happen in the future. Such damages result in a condemned house from black molds to infrastructure failures.
Compromised Insurance Coverage
When damages or disasters happen to your unpermitted basement renovations, your home insurance will not cover the costs of repair that will have to be done. However, if your insurance decides to cover the costs, the insurance company will likely increase your rates.
Permits are important documents needed by insurance companies because they assure that whatever work done on your home is accident-free and safe.
Rejection Of Mortgage Refinancing
When there’s a need to reapply for a new loan or refinance because your mortgage term has already ended, the unpermitted basement will not be included in the computation of total square footage. Mortgage lenders will only grant a new loan on recorded square footage.
With this, the value of your house appraisal can decrease and lead to lenders possibly walking away from any agreement proposed.
Is It Possible To Get A Permit For An Already Finished Basement?
Yes, it’s possible to get a permit for a basement that’s been renovated or finished. If you are moving into a house with a basement without a permit, simply go to your local building services office and proceed with the application of a retroactive permit.
An inspector will help you determine which areas are needed to be fixed, or you will only need to sign on the permit that comes with a price.
Also, you need to remember that the inspector may order you to remove the drywall and insulation to inspect behind the walls. Your title insurance can cover the repairs if you’re not the one who did the work. However, if you’re responsible for doing the work yourself, you need to pay all costs.
Do I Need Permit For Basement Remodelling?
You will only need a permit for basement remodeling when it involves building or removing the walls, making changes to the electrical wiring, HVAC systems, sewage, and expansions. However, if you only wish to change your basement’s appearance, such as painting the walls, changing the flooring, or getting new furniture, you won’t need one.
Consider Getting A Professional Contractor
For complex renovation projects such as a bathroom or kitchen installation, you need a professional contractor to help you with the entire process. A licensed contractor can be the one to apply for the needed permits. He can also be responsible for filling out your permit application and going through the entire inspection process.
Where To Get A Basement Permit?
If you wish to get a permit for your basement, contact the construction department of your township and inform them that you wish to have your basement inspected and issued permits. The department’s staff will provide you with a folder complete with instructions on the application process. They will also inform you of the fees needed for the permits.
Secure A Permit To Stay Away From Headache
Illegal basement construction can lead to several consequences that are certainly tedious and a hassle to everyone. These consequences are both short-term and long-term, which can negatively impact your home.
There are no advantages to getting your basement finished without a permit. With this, you must always secure a permit before deciding to have your basement or any other part of your home renovated.