If I sell my unpermitted house on a contract, and the county cracks down and insists that it is brought to code, then who is liable to do so? Will I get in trouble as I still own the "mortgage?"

Hello C:

If you sell on a contract, you still own the house until it's paid off. IF you transfer ownership BEFORE the contract is satisfied, and the buyer misses a payment, you can't do anything about it.

So, building an unpermitted house is going to cost you money no matter what you do.

excon

So you are telling us it is both built with out a permit and it is built out of code, short answer yes

Thanks Excon- so to clarify... If I sell it on contract then even though they bought it, I would have to comply with the law with my money? I knew I would be liable if they defaulted.

Yes, it is a solar home so I know it would not pass the electrical.

We are selling at a super low price because of the permit thing. So they know what they are getting in to. But I don't want to take the risk. I have for ten years and it has been fine... but if they do something stupid I don't want to be caught holding the bag.

Not sure what you mean but if its 100% solar and has no power coming in there won't be an electrical issue.

There is battery power, an inverter and electrical in the walls, but very few plugs. I had a friend who went through this already. I'd probably need a new septic, too. But that isn't the question. I really want to understand the liability issue. If you know and can help me I would gladly support you.

Thanks Excon- so to clarify...If I sell it on contract then even though they bought it, I would have to comply with the law with my money? Hello again, C:

If you mention NOTHING about the problem in your sales contract, once it's discovered, and YOU are the owner of record, of course the county or city is going to come after you. However, since you're not trying to CHEAT anybody, and you're giving them a good deal, you can certainly put stuff in the contract that would make THEM liable. Seems to me that your problem can be handled by having a LAWYER write your contract.

excon

If I sell my unpermitted house on a contract, and the county cracks down and insists that it is brought to code, then who is liable to do so? Will I get in trouble as I still own the "mortgage?"

If you enter into a "contract for deed", it means that you agree to transfer title if and when the buyer pays you as agreed. Until that happens, you are still the record owner. So, until that happens, the county would insist that you, the record owner, bring the house up to code.

Your contract may explicitly provide that the buyer do this, but the county, which doesn't care which of you bring it up to code, may choose whichever of you it wants to choose to go after.