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If the renovations are done without a permit, at least get a retrospective permit and apply for inspections. In the worst-case scenario, you can face heavy fines and open your walls for inspection. It can also lead to compromising your insurance, safety, resale value, and mortgages.
It's possible to create a basement in your home in the South. However, you'll have to implement some measures to prevent water damage. If your area has a lot of clay soil, consider adding lime to the dirt before laying your foundation.
A finished basement must be directly accessible and contiguous with the rest of the house. If the space doesn't have permanent stairs or direct access then it isn't considered a finished living area. Finished spaces only accessed by ladders, such as lofts, are also not considered living areas.
All new buildings or building additions require issuance of a building permit and, in most cases, any remodeling that involves structural work (moving or eliminating walls) or any work which increases the living space of your home (finishing attic or basement areas) will require a building permit.
Yes, a finished basement would count as a living space. On the other hand, just because your basement is a valid living space doesn't automatically mean it'll be factored into the square footage. In rare instances, even a finished basement will be included within the total square footage of a home.
It's possible to create a basement in your home in the South. However, you'll have to implement some measures to prevent water damage. If your area has a lot of clay soil, consider adding lime to the dirt before laying your foundation.