Saturday, January 22, 2011

DISCLOSE OR NOT TO DISCLOSE?


Many sellers become confused when they are deciding when to disclose material facts about the home they are selling.  The general rule in California, "when in doubt, disclose".  I have a seller along with his buddies installed a brand new HVAC (heating/air) system in their older home without obtaining a permit before installing the unit.

It is common for homeowners to avoid retaining permits for remodels or installation and/or replacement of equipment in the home.  In many California city and counties, the building permits can be quite costly so it is understandable why many avoid taking out required permits prior to construction or installation. In some counties, a seller must obtain a clear 'city re-sale inspection' before placing their home on the market.  This forces the seller to sell a home that is code compliant. 

Even though my seller had already installed the HVAC system without the permit, it became very clear that he needed to produce evidence of a permit and he understood it wasn't too late to obtain the permit because of the following California law.  

Beginning October 1st, 2005, all HVAC systems installed or replaced requires a permit and test for leaks.  Any ducts leaking more than 15 percent from the HVAC system must be repaired or properly installed.  This law came into affect as a measure of energy conservation in California.  



 

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