Buyers typically have a negotiated amount of time to conduct inspections after mutual acceptance in an earnest money agreement is reached.  In Eugene, Oregon 5-10 days is the typical time frame given for this.  The Oregon residential real estate agreement goes into further detail on page 4- line 199-202.

Recently I helped a first time buyer couple try to purchase a rural property.  After writing the offer I stressed the importance of them doing any due diligence they felt necessary during our 10 day inspection period.  I metioned visiting the city offices to confirm easements,  zoning, approximate property lines, permits, septic tank/ well locations, shared items- driveways, wells and etc.

The wife was one of the few people who actually understood the importance of researching the property.  The very next day she visited the city and discovered the home they were about to purchase was built without a building permit.

The previous owners had purchased the home for cash and relied on their Realtor to do their own due diligence.  The research this Realtor preformed was out of the scope of her duties of representation.  She had pulled  up the wrong permit for this property. The address was off one number, an easy mistake for someone not paying attention; and never thought otherwise by any and all parties involved.  The lender, appraiser, insurance provider... no one caught this mistake.

Roughly seven years have passed since the current owners have purchase this home.  Their Realtor has since gone out of business.  The owners were told it would costs roughly $20,000 to permit this home through the assistance of a retired city worker.

A lender will not loan on the property until a permit is obtained.  The owners must now disclose this information in a sellers property disclosures to potential future buyers.  If the home were to catch on fire, like their neighbors recently did, there is a possibility that home owners insurance would not cover the current structure.

The moral to this blog..Do your due diligence (homework) when buying real estate!