Written by Jayson Elliott · Attorney, Bay Legal PC · CA Bar No. 332479 · Last reviewed April 2026
Bought a Home with Unpermitted Work
Key Takeaways
- If the seller knew and didn't disclose, you may have claims for damages or rescission
- The seller's agent may also be liable if they knew or should have known
- Claims typically must be brought within 3 years of discovery
- Options include demanding seller pay for corrections, settlement, or lawsuit
When Buyers Discover Unpermitted Work
Buyers typically discover it during renovations (building dept flags discrepancies), when a neighbor or inspector notices something, during refinance appraisals, or when problems arise with the unpermitted work.
Your Claims Against the Seller
Failure to disclose: Under Civil Code §1102, if the seller knew and didn't disclose, you have a claim. Damages include the cost of bringing work to code.
Fraud: If the seller actively misrepresented permit status, you may recover additional damages.
Rescission: In serious cases, you may unwind the purchase entirely.
Agent liability: The seller's agent has a duty to inspect and disclose material facts.
Steps to Take
- Get a building department records search showing what was/wasn't permitted
- Get estimates for bringing work to code
- Review the seller's TDS and all sale disclosures
- Consult an attorney before the statute of limitations expires
Bay Legal PC — Permit Violation Law Attorneys
Bay Legal PC in Palo Alto handles permit violation law disputes throughout California. Free initial consultations available.
Get a Free Consultation →Frequently Asked Questions
How long do I have to sue the seller for undisclosed unpermitted work?
Generally 3 years from the date you discovered or should have discovered the problem. Don’t wait — consult an attorney while evidence is fresh.
Can I sue the real estate agent for missing unpermitted work?
Possibly. Under California law, the seller’s agent has a duty to conduct a visual inspection and disclose material facts. If the unpermitted work was reasonably discoverable, the agent may share liability.
Am I responsible for fixing undisclosed unpermitted work?
As the current owner, you’re responsible for bringing the property into compliance. However, you can recover the cost from the seller (and potentially their agent) if they failed to disclose.
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Jayson Elliott, Bay Legal PC · Palo Alto, California
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