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Permit question

2,167 Views | 14 Replies | Last: 4 yr ago by The Collective
joerobert_pete06
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AG
My father in law purchased a 2.5acre plot that contains a house, swimming pool and two other structures on the property (cypress/Tomball area). While attempting to permit for building a mother in law house on the property, he realized that the two other structures were not permitted.

Should he file a lawsuit against the previous home owners for not disclosing that information? Assumption here is that property taxes will increase as result.

Thanks
dallasiteinsa02
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I don't think the seller is going to be liable for the tax situation. The current TREC form, under #9, requires disclosure if they are aware that anything was added without the necessary building permits. You may have them on that item, but you have to be able to prove that they knew. That can be really hard to do.
p_bubel
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I'm frankly surprised you're pulling permits for the guest quarters on 2.5 acres.
That just might be the San Antonio in me though.

I'd shrug it off and move on.
joerobert_pete06
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AG
p_bubel said:

I'm frankly surprised you're pulling permits for the guest quarters on 2.5 acres.
That just might be the San Antonio in me though.

I'd shrug it off and move on.


I think permit was needed to run electrical to a new meter
Diggity
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AG
better to ask for fergitness than permitson
joerobert_pete06
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Just checked, the disclosure box was left unchecked on the TREC and they are getting testimony from a neighbor saying the sellers did not get permits to avoid increase in taxes. Also the new assessment on the property increases taxes by 5k per year.
Diggity
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AG
Never sign an incomplete SD!
CS78
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joerobert_pete06 said:

the disclosure box was left unchecked on the TREC


That's on the buyer and their agent.
joerobert_pete06
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AG
CS78 said:

joerobert_pete06 said:

the disclosure box was left unchecked on the TREC


That's on the buyer and their agent.


Check out TREC OP-H item #9. This seems clear cut; if the seller does not disclosure that there are un-permitted structures on the property, they are essentially committing fraud which would make the contract null and void.

https://www.trec.texas.gov/sites/default/files/pdf-forms/OP-H_1.pdf

"The purpose of the Seller's Disclosure is to make it clear what appliances, equipment, and features exist on the property; whether or not these items are working; if the seller knows of any defects or malfunctions in critical systems; if certain red-flag events like termite treatment, previous fires, or flooding have occurred; the need for repairs; and the existence of unpermitted additions, unpaid HOA fees, violations of deed restrictions, lawsuits, or conditions that "materially affect the health or safety of an individual." It should be "completed to the best of seller's belief and knowledge as of the date the notice is completed and signed by the seller." Prop. Code sec. 5.008(7)(d).

The Seller's Disclosure seeks to implement the core disclosure requirement in Texas, succinctly articulated in Myre v. Meletio, 307 S.W.3d 839, 843-44 (Tex. App.Dallas 2010, pet. denied): "In the context of a real estate transaction, a seller is under a duty to disclose material facts that would not be discoverable by the exercise of ordinary care and diligence by the purchaser, or that a reasonable investigation and inquiry would not uncover. But a seller has no duty to disclose facts he does not know. Similarly, a seller is not liable for failing to disclose what he only should have known." Actual knowledge is thus required. A careless and neglectful seller who has not thoroughly acquainted himself with the condition of property he is selling may be off the hookunless, of course, he encounters a skeptical jury that considers his conduct not just neglectful but dishonest."
joerobert_pete06
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AG
dallasiteinsa02 said:

I don't think the seller is going to be liable for the tax situation. The current TREC form, under #9, requires disclosure if they are aware that anything was added without the necessary building permits. You may have them on that item, but you have to be able to prove that they knew. That can be really hard to do.


Dallas

In response, the seller built the house and all of the structures on the property, he had knowledge of the un-permitted structures. Plus my father in-law has testimony from a neighbor.
Diggity
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AG
Nobody knows what will be decided in a court of law. I do know it was a bad idea for the buyers agent to allow them to sign an incomplete SD. Their broker will likely get pulled into any lawsuit.
joerobert_pete06
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AG
Diggity said:

Nobody knows what will be decided in a court of law. I do know it was a bad idea for the buyers agent to allow them to sign an incomplete SD. Their broker will likely get pulled into any lawsuit.


Why do you say it was incomplete? The disclosure was signed with no mention of this? Should the buyers agent gone down to county office to verify all of the permits? Should he also verified whether or not a flood claim was filed on this property?
Diggity
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AG
You said a box was left unchecked. I may have misunderstood you.
The Collective
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I don't understand the damages to the buyer in this instance. The fact that it isn't rubber-stamped by a government agency?
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