Before starting a remodeling project, check to see if you need a permit. It may seem like a hassle but the permit enforces safety codes and ensures the safety of the house and the people within it. Without one, your insurance company probably won’t cover the costs if an accident occurs during remodeling. In addition, you could be subject to fines up to four times the cost of the permit.
A permit also comes into play when you plan to sell the house. You probably won’t get an accurate value assessment from an appraiser unless you provide proof of permit for any added square footage. And, at closing you will likely be required to disclose any remodeling and provide verification of permits.
According to the American Bar Association, “if no permits are found and it’s obvious the home has been renovated, the bank will likely refuse to make the loan”.