Bought a Home with Unpermitted Work — Buyer's Rights

8 min read · Last reviewed April 2026

Discovering unpermitted work after you've already closed on a California home is a stressful situation — but you're not without options. Depending on the circumstances, you may have legal claims against the seller, the listing agent, the buyer's agent, or even the home inspector.

How Buyers Discover Unpermitted Work

• City or county permit records don't match the property's actual condition
• A renovation project reveals non-code-compliant work behind walls
• A neighbor or code enforcement officer reports the issue
• An appraiser or refinancing inspection flags discrepancies
• A contractor hired for new work discovers existing unpermitted modifications

Your Legal Claims

Against the seller: If the seller knew about the unpermitted work and failed to disclose it on the TDS, you have a claim for non-disclosure under Civil Code §1102. Damages can include the cost of legalizing or correcting the work, diminished value, and in some cases attorney's fees.

Against the agents: Both the listing agent and buyer's agent have duties to disclose known material facts and to conduct a reasonably competent visual inspection. An agent who knew or should have known about obvious unpermitted work may be independently liable.

Against the inspector: If you hired a home inspector who missed obvious signs of unpermitted work, you may have a professional negligence claim, though inspector liability is often limited by contract.

Time Limits

The statute of limitations for real estate non-disclosure claims in California is generally 3 years from the date you discovered (or should have discovered) the unpermitted work — not from the date of purchase. However, there are outer limits, so it is important to act promptly.

Steps to Take Now

1. Document everything. Photograph the unpermitted work, pull permit records, and gather all sale documents including the TDS.

2. Get estimates. Obtain written estimates for the cost of legalizing or correcting the work.

3. Review the disclosure documents. Look at what the seller disclosed (and didn't) on the TDS and other documents.

4. Consult an attorney. A real estate or construction attorney can evaluate your claims and advise on the best path forward.