The garage that became a family room. The back porch someone enclosed in the '90s. The bathroom the previous owner "added himself."

If any of that sounds like your house, you're probably asking the same question I hear from a lot of first-time sellers: can I even sell this?

The short answer is yes. Homes with unpermitted work sell in California all the time. What gets sellers into trouble isn't the unpermitted work itself. It's staying quiet about it.

If you're selling a one-to-four unit home in California, you generally have to give the buyer a Real Estate Transfer Disclosure Statement (the "TDS"). It's a form spelled out in state law (Civil Code section 1102.6), and it asks you directly whether you're aware of:

• "Room additions, structural modifications, or other alterations or repairs made without necessary permits"
• "Room additions, structural modifications, or other alterations or repairs not in compliance with building codes"

You answer to the best of your knowledge. You're not expected to know what you don't know. But if you know a room was added without a permit, that box gets checked, and you explain what you know in plain words.

The California Department of Real Estate's reference book says it simply: the seller must disclose all material facts and defects, and it specifically calls out room additions, structural alterations and repairs, "especially those made without required building permits."

When a buyer learns about unpermitted work after they've made an offer, it can shake their trust in everything else about the house. If disclosures are delivered after the buyer signs the purchase contract, state law gives them a window (three days after delivery in person, or five days if mailed) to cancel in writing.

Put it out there up front, and it simply becomes part of the price and the conversation instead of a reason to walk.

You can apply to permit the work after the fact. Your home's location decides who you work with: the city's building department if you're inside city limits, or the County of San Luis Obispo Planning & Building Department if you're in an unincorporated area.

Go in with eyes open. The County's own As-Built Construction Guide (Form BLD-2009, updated September 2025) explains that:

• Plans are generally required, usually prepared by a California-registered architect or engineer.
• An inspector visits and writes up a correction list. Photos are not accepted in place of an in-person inspection.
• You may need to open things up so they can be seen, like exposing parts of the foundation, a section of wall, or wiring and plumbing.
• The County charges a Non-Compliance Fee equal to the standard plan check and inspection fees, so the total is roughly double the regular permit fees, all due when you apply.
• Once the permit is issued, the corrective work has a 90-day deadline unless you get a written extension.

This path takes time and money, but it can open your home up to more buyers and loan types. It makes the most sense when the work is solid and you're not in a rush.

This is the most common route. You disclose clearly, share any paperwork you have (receipts, contractor names, dates), and price the home with the unpermitted space in mind. Some buyers will pass. Others won't mind at all, especially if the work is well done and they plan to permit it themselves later.

You can also sell the home in its current condition, with full disclosure, and make it clear you won't be making repairs or permitting anything. "As-is" doesn't erase your disclosure duty. It just sets expectations about repairs.

There's also a fourth, less common choice: remove the unpermitted work entirely. The County's guide mentions getting a permit to demolish it, then rebuilding with permits or not rebuilding at all.

1. Pull your permit history from the city or County so you know what's actually on file.
2. Walk through the house and list anything that was added, enclosed or converted.
3. Gather any paperwork you have: receipts, contractor info, dates.
4. Decide which path fits your timeline and budget: legalize, disclose and price, or sell as-is.
5. Be specific on your TDS. "Garage converted to bedroom by prior owner, no permit on file" is far better than a vague note.
6. If something feels like a gray area, talk to a real estate attorney before you sign your disclosures.

Unpermitted work doesn't have to derail your sale. It just needs a plan. If you're wondering how that converted garage or enclosed patio affects your price, I'd be glad to walk through it with you and help you decide what's worth fixing and what's better left to the buyer. Call or text me at (805) 400-5543, email CentralCoastLiz@gmail.com, or reach out through my contact page.

Liz Anderson, Broker/Owner, Central Coast Premier Realty | DRE #01462145

General information, not legal advice. Permit rules and fees differ by city and county and can change, so confirm your situation with your local building department and a qualified attorney.

Equal Housing Opportunity.

• California Civil Code section 1102.6
• California Department of Real Estate, Reference Book, Chapter 20
• County of San Luis Obispo Planning & Building, "As-Built Construction Guide" Form BLD-2009 (09/01/2025)