By Meredith Jones, Owner, Ally Property Inspections · Published July 28, 2026
Key Takeaways
- Unpermitted work means renovations done without required permits — and when buying a home, you inherit the problem.
- You can verify permits with one phone call to the county or city permitting department.
- If work wasn’t permitted, you may have to purchase the permit later with a penalty, or correct the work entirely.
- An extended-coverage title policy can protect against unpermitted-work surprises.
Unpermitted work is one of the most overlooked risks when buying a home. The renovation looks finished, the listing says “updated,” and everyone moves on. However, if that work was done without required permits, the problem transfers to you at closing. The seller’s shortcut becomes your liability. The good news: permits are public records, and verifying them takes a phone call. Here’s how to protect yourself.
What Counts as Unpermitted Work?
Permit rules vary by city and county. Generally, structural changes, additions, electrical work, plumbing, HVAC replacement, decks, and finished basements require permits. Cosmetic work like paint and flooring usually doesn’t. The permit process exists for a reason: a municipal inspector checks the work at key stages, which protects future occupants — including you.
When a homeowner or investor skips permits, no one independently verified the work. Therefore, “renovated” tells you nothing about “renovated correctly.” Finding unpermitted work before buying a home is far cheaper than discovering it after.
Why Unpermitted Work Hurts You When Buying a Home
The consequences land in three places. First, money: if the work wasn’t permitted, you may have to purchase the permit after the fact with a penalty. Some jurisdictions also require opening up walls so the work can be inspected. Second, insurance: damage caused by unpermitted work can complicate claims. Third, resale: when you sell, your buyer’s agent will ask the questions you didn’t.
In fast-moving markets like Atlanta and Birmingham, unpermitted work clusters in flips and DIY renovations. Roughly 70% of homeowners take on DIY projects, and plenty of that work needed a permit it never got. That’s why it’s red flag #5 in our guide to buying a flipped house.
How to Verify Permits in Three Steps
Verification is simple, and you don’t need anyone’s permission to do it:
- Call the permitting department for the county or city where the home sits. For example, Atlanta buyers may deal with the City of Atlanta, DeKalb, Fulton, Cobb, or Gwinnett depending on the address.
- Verify whether a permit was pulled for the renovation work the seller describes.
- Confirm the inspections were completed and the permit was closed — an open permit means the work was never approved.
Many metro counties also offer online permit search portals. Either way, do this during your due diligence period, because the answers affect your negotiation.
What If You Find Unpermitted Work?
Discovering unpermitted work while buying a home isn’t a dealbreaker by default. You have options, and none of them require panic. You can ask the seller to obtain retroactive permits before closing. Alternatively, you can negotiate the price to cover the risk, or request an extended-coverage title policy that covers unpermitted work. Most importantly, get your inspector’s eyes on the work itself. A home inspection can’t confirm permit status — that’s a records question — but it can reveal whether the work shows the shortcuts that unpermitted projects often hide. Our post on what a home inspection won’t find explains where those limits sit, and the InterNACHI library covers renovation defects in depth.
Frequently Asked Questions About Unpermitted Work When Buying a Home
How do I find out if work was permitted?
Call the permitting department for the home’s city or county, or search their online portal. Then confirm the permit was pulled, inspected, and closed.
Who is responsible for unpermitted work after closing?
Generally, the new owner inherits the property as-is. Consequently, you could be required to permit, correct, or even remove unpermitted work discovered later.
Can a home inspection detect unpermitted work?
Not directly, because permits are records, not physical conditions. However, inspectors often spot the amateur workmanship that unpermitted projects leave behind.
Should I walk away from a house with unpermitted work?
Not necessarily. Instead, weigh the scope of the work, the cost to legalize it, and the seller’s willingness to fix or discount. Small unpermitted projects are common and manageable.
What is retroactive permitting?
The owner applies for a permit after the work is done. The municipality inspects it, sometimes requiring walls to be opened, and penalties or corrections may apply.
Does title insurance cover unpermitted work?
Standard policies usually don’t. However, an extended-coverage title policy can include protection for unpermitted work — ask your closing attorney about it.
Verify First, Close Second
Three phone calls and a thorough inspection can save you from inheriting someone else’s shortcuts. If you’re buying a renovated home anywhere in metro Atlanta, Birmingham, or Huntsville, contact Ally Property Inspections — we’ll help you see what the fresh paint doesn’t show.