Building Permits And Your Property

You're either interested in purchasing a home that has had previous structural work done to it or you are interested in selling your home that has work done by you or a previous owner, the big question is: Was a building permit issued for the work?

The answer to this question is important for two reasons.
 
First, if you are looking to purchase a property and it's clear previous work was done, you need to be sure the work performed was done in accordance with the building code.

Second, you, the homeowner, will have to pay to have the work brought up to code and prove the work meets the building code requirements, even if it was the previous owner who did the work.

Let's take a look at what the implications of previous structural work done to the foundation of your home would mean.
 

Previous Structural Work

Underpinning or bench footings often indicate a problem area that had previously existed with the property. For most older homes this is either a result of inadequate footings below the foundation wall, poor soils, or some other equally important and significant structural issue.  The importance of discovering previous structural work like this, whether done by you or a previous homeowner decades ago, is the work needs to be backed up by a building permit and engineering reports too.

If it's found the structural work is non-compliant, you're looking at a significant cost to have the work brought up to the standards necessary. So if you are serious about making an offer on a property and are thinking the lack of a building permit is something you can ignore, better think again.

What Are Your Options?

If you own a property and are unsure if prior work on the home was done with a building permit, you have two options to exercise; both help you to discover if there was a building permit issued.  The first method is to conduct an anonymous search to determine what permits the municipality has issued for your property in the past. The other method is to contact the municipality directly to determine what work was done and under what building permit.

If you discover your home has unpermitted work and have no intention of having the work inspected by the municipality to determine if it meets the building code requirements, you must disclose the unpermitted work to the next buyer so they are aware of the risk they are assuming when purchasing your property. 

If you are looking to purchase a home and it has been disclosed there was unpermitted work done, the larger risk is you, as the buyer, may not be able to get financing for the house. That means even if you were interested and ready to buy the property because it has a great finished basement apartment perfect for your family's needs, you may not get financing.

If you want to bring the work up to code, then you will need to work with an architectural professional to help document the existing condition and open up portions of the covered work to show the municipal inspector how the structure was put together.  You will be responsible for all costs associated with bringing the work up to code.

So if you hear your contractor suggest you can do the work without a permit, contact your municipality to double check.  It's in your best interests to do so.

Your Project's Scope Of Work

A project's Scope of Work has often been mentioned in my discussions and you may be asking yourself "Just what, exactly, is a Scope of Work and how it can help me with my project?"

You may also be wondering how big does a project need to be for a Scope of Work? Does the Scope of Work apply to really massive jobs as well as small jobs, like installing a new light fixture for example?

You bet it does. 

The Scope of Work concept is quite simple. It's used to accurately describe:

• Who is responsible for what work
• How will the work be done
• What is the work
• When is the work finished
• How will you measure the work's completeness

Most people have the strange concept that any contractor given a set of drawings or project will approach the work in essentially the same way to create the desired result.  This couldn't be further from the truth.

If you're a contractor you're probably thinking, "I don't have time to write out a Scope of Work for every project I bid on!"

You know what? You're right.  The responsibility for creating the Scope of Work rests with the owner of the project.

So how do you convince the project owner they need to provide you with a Scope of Work before you invest the time and effort to price out a project?  I mean, the typical homeowner is probably thinking the Free Estimate is a pretty good deal right about now.

No hassle, pick up the phone, call, someone comes over, and then a few days later appears with a polished proposal.  Who needs a Scope of Work?  Want the job, give me your price.

Well, times are changing, fortunately, and more homeowners are now beginning to understand the difference "quality" makes, and it all starts with the project documentation prepared for the project.

What A Scope of Work Describes

Imagine, as a homeowner, or a contractor, you have the means to describe milestones, reports, deliverables, and end products for every phase and aspect of the project. If there is a dispute about the trade not performing to speed, it's because that speed was defined and identified prior to.  If the documentation says the agreed to crew size is one lead carpenter, an apprentice, and a laborer and just the carpenter shows up Day 1, as the customer and contractor you know your project's milestones are not going to be met.

If you're a contractor, the days of yelling into your phone, throwing your hard hat around, and being an ass and expecting an increase in performance as a result of your temper tantrum are over.  Same goes for you, the homeowner, who's hired on trades to do the work.  You can change the rules and demand more but understand this, the expectation is everyone has to agree to the change, how to implement the change, and what the impact is on the project in terms of compensation, deliverables, and milestones.

What A Scope Of Work Includes

So, what should a complete Scope of Work include?

These are the recommended components:

• Glossary
• Problem Statement
• Goals of the Agreement
• Deliverables
• Administration
• Timelines

Kia Ricchi, a Blogger for Fine Homebuilding wrote an article about how to Create A Scope Of Work. Some of Kia's points "are the description is accurate, detailed, and includes all the work and materials you will provide. Excluded items and additional work that the homeowner might assume to be included should also be noted.  In summary, a good scope of work should tell a prospective client exactly what is, and what is not, included in your bid."

Read more at: http://www.finehomebuilding.com/item/17971/create-a-scope-of-work#ixzz2yz4349Sz and be sure to check out my comment under my username misturfyxit. The comments made by me and others back in 2011 are still as valid then as they are today.

Who Prepares the Scope of Work

If you're the project owner, it's your responsibility to prepare the Scope of Work. The problem is, the typical homeowner is unaware of how to prepare a Scope of Work or who they need to talk to do so.  If you're replacing light fixtures, building a deck, or a new home, the Scope of Work varies, as does the expertise needed.

The question now becomes, who do you get to write your Scope of Work? Are there resources out there for you to use?

Fortunately, the resources are out there.  It's just a matter of getting them to all mesh together.

Buyer and Seller Beware

I'm often surprised to walk into homes people have recently purchased to discover a number of defects waiting for them to deal with. The number one issue is always a leaky or moist basement, closely followed by zoning or encroachment issues, then by hazardous materials in building products.

The first thought that comes to mind is why didn't the previous owner disclose the problem? This is followed by how can the previous owner or buyer be so unaware of how serious an issue this can be?

As a building professional, there are a number of scenarios I've seen that really made me upset for the owners of the property.  I remember one case in particular.

It was a young family who had purchased a property in a part of the City that is now being gentrified.  Their intention was to purchase the home, renovate the areas needing repair, and live there for quite some time afterwards reaping the rewards of their being the first into a neighbourhood in distress.

They showed me the existing kitchen addition they wanted removed and replaced.  Their hope was to reuse the foundation, extend the basement into the area under the kitchen, and make the kitchen the heart of the home.

When examining the existing structure it became apparent the foundation was non-conforming, as was the plumbing, wiring, and framing too.  A number of red flags were thrown.

Then I asked if they had a property survey, to which they replied, yes they did have one. I took one look at the survey, walked over to an area inside the kitchen, pointed at the floor and said "According to your survey, your property line is here, meaning, your neighbour owns this side of the room and all of that exterior wall too."

The reaction received was curious, in that the young mother picked up her child, sat down in a corner, and held the child up as a shield. The young father stood there looking at me dumbfounded as all the blood drained out of his face.

So begins their adventure in home ownership.

If I was a sociopath I would have signed them up for a renovation contract and bled them dry but instead I felt a great deal of sorrow for them. We discussed a strategy for them to pursue in order to become better informed.  What they needed to do was:

• Have the state of the home (property, structural, electrical, plumbing, and HVAC) professionally assessed
• Prioritize findings
• Decide on how to move forward (move, renovate, or demolish and build new)

In Ontario, it's buyer beware, although there have been recent court decisions holding the seller and realtor accountable.  Here are a few to note:

• Rampersad v. Rose, [1997] O. J. No. 2012 (Ontario Small Claims Court) 
• A leaking basement case.
• McQueen v. Kelly, [1999] O. J. No. 2481 (OSCJ) 
• Another leaking basement case.
• Stone v. Stewart, [2009] O.J. No. 1674 
• Leaking basement again.
• Riley v. Langfield   [2008] O.J. No. 2028 
• A flood that had happened in the basement
• Swayze v. Robertson, [2001] O. J. No. 968 (OSCJ)
• Leaking basement
• Gallagher v. Pettinger, [2003] O. J. No. 409 (OSCJ)
• Hid evidence of moisture in the basement
• Moore v. Page, [2002] O.J. No. 2256 (OSCJ)
• Structural defects and water leakage
• Kaufmann v. Gibson  [2007] O.J. No. 2711
• Not being truthful about conditions of the home
• Hunt v. 981577 Ontario Ltd., [2003] O. J. No. 2051 (Small Claims Court)
• Ongoing obligation to report changes after disclosure was made

So, if you are in the process of buying or purchasing a property, take the time to educate yourself so both you and your family are protected. When looking at a home, forget about stuff like paint colour, whether or the carpet works for you, or if the kitchen looks dated.  That's emotional tug at the heart strings stuff and when the lights are out, meaningless.

If your roof leaks, your house encroaches into neighbouring property, or there's mold in your basement making you and your family sick, these are serious issues requiring significant time, energy, and money to repair.

Purchasing and selling property is a business decision and you need to be informed about what your obligations are to both yourself and family as a buyer or seller.  Be safe. Be aware.