Most jurisdictions require sellers to disclose known issues with the property to potential buyers, including any unpermitted work. Failure to disclose such information can lead to legal action from the buyer, including lawsuits for nondisclosure.
A contractor can get in trouble for not pulling a permit when they undertake work that requires one, such as structural changes or electrical installations. Some consequences may include fines, legal issues, and potential safety hazards, as unpermitted work may not meet the code regulations.
You can sue any contractor, licensed or unlicensed, if you have good reason. If you don't have a good reason you're not going to win a lawsuit. Licensed or not, if you let them do work you created at least a verbal contract involving your consent.
Various state regulations require contractors to pull permits. California, for example, mandates that anyone who works on your home must be licensed by the Contractors State Licensing Board (CSLB) if the project is over $500. Check the requirements where you live before starting your project.
In Florida, unlicensed contracting is typically charged as a first degree misdemeanor, with penalties of up to one year in jail, twelve months of probation, and a $1,000.00 fine. However, these penalties are usually for first time offenders.
Penalties for Not Pulling a Permit Cease and Desist Orders: Local authorities may issue a stop-work order, halting the construction project until proper permits are obtained. Removal of Work: If the work is not up to code, property owners might be required to remove or redo it, leading to increased costs and delays.
If getting the permits was clearly stated as being the responsibility of the contractor, then yes he is in breach of the contract. If you are in the US, you can sue him in small claims court. Also, be sure to file a complaint with your state's licensing board for contractors (most states have them, AFAIK).
Certain projects, such as bathroom or kitchen remodels, may require permits depending on the type of work being performed. For instance, a bathroom remodel where plumbing work is involved would likely require a permit.
When dealing with construction and renovation, hiring a licensed contractor is critical to ensuring quality work and legal compliance. In Florida, unlicensed contracting is not only a risky affair for homeowners and businesses but also a legal issue that can result in criminal charges and civil actions.
Florida sellers are required by law to disclose unpermitted work at the time of the sale of the home.