How to Verify Permits and Property Records Before Investing

Jan 8, 2027 · By Oanh Nguyen · Broker & Loan Officer · Investing

A listing might say "four bedrooms, three baths, with a remodeled kitchen and a backyard ADU." But what was permitted? What does the county have on record? And does it matter?

For investors, it matters a lot. Unpermitted work can affect value, appraisal, financing, insurance, safety and how you can legally rent the property. It may also mean extra costs to correct the work later, or disclosure questions when you sell.

The good news: you can check much of this yourself before you remove contingencies. In this post, I'll explain why permit and record checks matter, where to look, how to review additions and ADUs, how inspections help, how insurance fits in and what to do with unresolved questions.

This is general information, not legal advice. Rules vary by city and county. For legal questions, talk with a real estate attorney. For construction questions, talk with a licensed contractor or engineer.

Why Permit and Record Checks Matter

Unpermitted work can affect:

• Safety. Permits and inspections help confirm work meets building codes.
• Value and appraisal. Appraisers may treat unpermitted space differently.
• Financing. Some lenders and loan programs have concerns about unpermitted work or units.
• Insurance. An insurer may ask about unpermitted work, and it could affect coverage or claims.
• Rental use. An unpermitted unit may not be a legal rental unit.
• Future costs. Correcting or legalizing work can be expensive.
• Disclosure. Known unpermitted work may need to be disclosed when you sell.

Step 1: Gather What the Seller Provides

Start with the documents in your transaction:

• Seller disclosures, including the Transfer Disclosure Statement and any questionnaires. These often ask about permits and unpermitted work.
• Permit records or receipts the seller has.
• Plans for additions or remodels.
• Prior inspection reports.
• The listing description and marketing materials.

Write down every improvement that seems to have been made: additions, garage conversions, kitchens, bathrooms, ADUs, decks, electrical upgrades, re-roofing, windows and solar.

Step 2: Check the City's Permit History

Most permits are issued by the city where the property is located, or by the county for unincorporated areas.

How to check:

• Online permit search. Many cities offer online lookups by address. San José's permit center, for example, has information on building permits.
• Records request. If online records are incomplete, request permit history from the building department.
• Ask about finaled permits. A permit that was issued but never "finaled" (passed final inspection) may still be open.

Look for:

• Permits for each improvement on your list.
• The scope of each permit, compared with what's actually there.
• Final inspection dates.
• Open or expired permits.
• Code enforcement cases or notices.

Tip: Older records may be on paper or microfilm. Ask the building department how to access them, and allow time.

Step 3: Compare County Assessor Records

The county assessor's records show how the property is assessed for taxes, often including:

• Square footage.
• Number of bedrooms and bathrooms, in some cases.
• Year built.
• Number of units.

Compare these with the listing and what you see. If the home has much more square footage or more units than the assessor shows, it may suggest additions or conversions that weren't permitted. It's not proof, but it's a reason to ask questions.

Assessor records aren't the same as permit records, and they can be outdated. Use them as one piece of the puzzle.

Who Issues Permits in My Service Area

Knowing where to ask saves time.

• San José, Milpitas, Fremont, Hayward, San Leandro and Pleasanton each have their own city building department.
• Castro Valley is an unincorporated community, so building permits there generally go through Alameda County, not a city.
• Other unincorporated areas follow the same pattern: the county handles permits.

If you're not sure whether an address is inside city limits, ask the county assessor or your title officer, or check the property tax bill.

Questions to Ask the Seller About Permits

1. Which improvements did you make while you owned the property?
2. Were permits pulled for each one, and were they finaled?
3. Do you have copies of permits, plans or final sign-offs?
4. Was any work done by an owner-builder or unlicensed person?
5. Do you know of any work done by prior owners without permits?
6. Have you received any notices from the city?

Get the answers in writing through your agent. Compare them with what the city's records show.

Reading a Permit Record

When you pull a permit history, read each entry closely:

• Permit type and description: does it match what's in the home?
• Issue date and final date: was it completed?
• Scope: a "kitchen remodel" permit may not cover moving walls or adding a bathroom.
• Contractor name and license number, if listed.
• Inspection history: were inspections passed?

A permit for part of a project doesn't mean the whole project was permitted.

Step 4: Review Additions and Conversions

Common items to verify:

• Room additions.
• Garage conversions into living space.
• Attic or basement conversions.
• Enclosed patios or sunrooms.
• Added bathrooms.
• Kitchen and bathroom remodels with plumbing or electrical changes.
• Electrical panel upgrades.
• Re-roofing.
• Window replacements.

For each, ask: Was it permitted? Was it finaled? Does what's there match the permit?

Step 5: Check ADUs and Extra Units

ADUs and extra units deserve extra attention for investors, since they affect income.

• Was the ADU permitted and finaled?
• Is it an ADU or a junior ADU (JADU)? They're treated differently. The California Department of Housing and Community Development's ADU Handbook explains the definitions.
• Are utilities separate or shared?
• Does the city show the unit in its records?
• If unpermitted, is there a path to legalize it? Some cities have programs. San José, for example, has an AB 2533 ADU and JADU legalization program.

My post on selling a home with an ADU covers ADU records from the seller's side.

Step 6: Use Inspections to Confirm

Records tell you what was approved. Inspections tell you what's actually there.

• General home inspection: the inspector may note signs of unpermitted work, like non-standard wiring or plumbing.
• Specialist inspections: electrical, structural or plumbing, when needed.
• Compare inspection findings with permit records.

If an inspector raises concerns, ask a licensed contractor or engineer for an opinion and an estimate to correct the work. You can check licenses through the Contractors State License Board.

Step 7: Check Insurance

Talk with your insurance agent early:

• Will unpermitted work affect coverage?
• Will the insurer inspect the property?
• Are there any items, like an older electrical panel or roof, that affect insurability?

The California Department of Insurance has consumer guides on residential insurance.

Step 8: Check Title and Recorded Documents

The preliminary title report may show:

• Recorded notices from the city, like code violations.
• Easements or restrictions that affect use.
• Covenants or agreements related to an ADU, if any were recorded.

Ask your title officer about anything unclear.

Step 9: Decide What to Do With Unresolved Questions

You may not get every answer. When questions remain, you have options, depending on your contract and contingency periods:

• Ask the seller for more information or documents.
• Get an estimate to permit or correct the work.
• Talk with the city about legalization requirements.
• Negotiate a price change or credit, if appropriate.
• Adjust your analysis, like not counting income from an unpermitted unit.
• Walk away if your contract allows and the risk is too high.
• Get legal advice about your situation.

Don't remove contingencies until you're comfortable with the answers, or with the risk of not having them.

Plan the Cost of Fixing Records Problems

If you find unpermitted work you plan to correct, build it into your budget before you buy:

• Design or drawings, if the city requires plans.
• Permit fees.
• Work needed to meet current code, which may involve opening walls.
• Inspections and any corrections they require.
• Time, since the property may not produce full income during the work.
• A contingency for surprises.

My post on evaluating a fixer-upper renovation budget explains how to build these costs into your numbers.

Records Checklist

Common Mistakes

1. Trusting the listing description without checking records.
2. Assuming a permit was finaled because it was issued.
3. Counting income from an unpermitted unit as if it were legal.
4. Waiting too long to request records.
5. Skipping insurance questions about unpermitted work.
6. Removing contingencies with open questions.

Key Takeaways

• Unpermitted work affects safety, value, financing, insurance and rental use.
• Check city permit history and county assessor records.
• Pay extra attention to additions, conversions and ADUs.
• Use inspections to confirm what records show.
• Resolve questions, or account for the risk, before removing contingencies.

A Hypothetical Example

This example is made up to show the process. It is not based on any real property or client.

An investor is buying a home advertised with four bedrooms and a converted garage studio. The county assessor shows three bedrooms and less square footage. The city's permit history shows a bathroom remodel, but nothing for the garage conversion.

The investor's inspector notes non-standard wiring in the converted garage. A licensed electrician provides an estimate to correct it, and the city explains what would be needed to legalize the space. The investor removes the studio's rent from their analysis, negotiates a credit based on the estimate and plans to legalize the space after closing.

Frequently Asked Questions

How I Can Help

I help investors check permit histories, compare assessor records with what's on the ground, coordinate inspections and specialist opinions and decide how to handle unresolved questions before contingencies are removed.

The Bottom Line

Checking permits and records protects you from expensive surprises. Review the seller's documents, pull city permit history, compare assessor records, look closely at additions and ADUs, confirm with inspections, ask about insurance and resolve questions before you remove contingencies.

Checking a property's records? Let's go through them together.

Sources

• City of San José, About Building Permits: https://www.sanjoseca.gov/businesses/development-services-permit-center/about-building-permits
• City of Hayward, Permit Center: https://www.hayward-ca.gov/services/permit-center
• California Department of Housing and Community Development (HCD), ADU Handbook: https://www.hcd.ca.gov/building-standards/adu/handbook
• City of San José, AB 2533 ADU and JADU Legalization Program: https://www.sanjoseca.gov/businesses/development-services-permit-center/accessory-dwelling-units-adus/ab-2533-adu-and-jadu-legalization-program
• Contractors State License Board, Hire a Contractor: https://www.cslb.ca.gov/Consumers/Hire_A_Contractor/
• California Department of Insurance, Residential insurance consumer guides: https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/
• California Civil Code §1102 and following (Transfer Disclosure Statement): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1102
• Alameda County Community Development Agency, Planning: https://www.acgov.org/cda/planning/

Get help checking a property's records. Call or text me at 408-780-1188, or email onrealtygroup@gmail.com.

Oanh Nguyen · Broker & Loan Officer · On Realty Group, brokered by LPT Realty · BRE #02133991 · NMLS 2020335

Equal Housing Opportunity.

Loan disclosure: Oanh Nguyen, Broker | Loan Officer, On Realty Group, brokered by LPT Realty, BRE #02133991, NMLS #2020335. This post is general education, not a loan offer, rate quote or commitment to lend. Loan programs, guidelines and eligibility change and are subject to lender review and approval.

Disclaimer: This post is general information only, not an appraisal or legal, tax or financial advice; data comes from the public sources linked above, is believed reliable but not guaranteed, and can change at any time.