so if there are competing claims, those come with the house,” says Bieber. “You’ll inherit the easements, the creditor claims, and any other encumbrances. If there are problems like a boundary dispute, a weird easement granting access to a creepy neighbor, or a third party with a claim on the property, walk away. Otherwise, you could end up having to pay off someone else’s debt or watching your neighbor trudge through your yard as you sip your morning coffee.” 4. WORK HAS BEEN DONE WITHOUT A PERMIT If you discover that work has been done on the property without a permit, that’s a red flag and a sign that perhaps it’s time to walk away from the deal. If you go through with the purchase of the home, signing a contract and going through the closing process, that home is now yours. But if work was done on the home without a permit — even if you had no knowledge of it and the work was done by a previous homeowner — you will still be held accountable for it and be forced to deal with the repercussions. “If construction has been done without the necessary permits, the local government could find out and cite you for property code violations,” points out Bieber. “When the issue is discovered, the homeowner will have to pay fines for the unpermitted work. If you’re the homeowner, you’re the one who has to pay, even if the prior owner was the one who did the work without clearing it with local officials. Your tax assessment could also go up once the upgrades are properly disclosed.” Further, whatever repairs, renovations, upgrades, or improvements that were made without a permit have to be inspected after discovery. You will quickly see why it isn’t worth
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