Deal structure

How to structure a purchase agreement for an unpermitted deck

Structuring a purchase agreement for a property with an unpermitted deck requires clear disclosure and careful negotiation. Ensure the contract specifies the property is sold as-is, acknowledging the deck's non-conforming status.

November 8, 2026 · 4 min read

Identifying the unpermitted deck during due diligence

Before making an offer, you need to identify if a deck is unpermitted. Check local county records for building permits issued for the property. If there is no record for the deck's construction, it is likely unpermitted. Sometimes, a seller will disclose this, but often it is up to your research.

Compare the property's permit history with the visible features. An older deck might predate extensive permitting requirements, but a newer, substantial structure without a permit is a clear flag. This discovery will impact your offer and contract strategy significantly.

Negotiating the offer with an unpermitted deck in mind

An unpermitted deck represents a potential cost and liability. It might need to be removed, brought to code, or could complicate future sale. Factor these potential expenses into your offer. The cost to remove, or to get a permit and make necessary modifications, reduces your ARV.

Present your offer reflecting this reduced value. Explain to the seller that the unpermitted status is a risk that you are taking on. This helps justify a lower cash offer, as you are buying a problem he or she would otherwise have to solve.

Key clauses to include in the purchase agreement

Your purchase agreement should explicitly state that the property is sold 'as-is, where-is' with all its defects, including any unpermitted structures. This protects you from future claims related to the deck.

Include a clause that indemnifies you from any liability related to the unpermitted deck, both before and after closing. It is not legal advice, so you should always recommend that he or she has an attorney review any contract. Additionally, a seller's disclosure should acknowledge the unpermitted nature of the deck, if he or she is aware of it.

Addressing disclosure requirements with the seller

Even if the seller claims ignorance, you as the buyer are now aware of the unpermitted deck. While you are buying as-is, it is prudent to have the seller acknowledge the condition. In his or her seller's disclosure, he or she should either state the deck's unpermitted status or indicate he or she has no knowledge of permits.

Ensure the seller understands that your offer accounts for this condition. This transparency helps manage his or her expectations and reduces the likelihood of future disputes. It also puts the burden of proof on him or her if he or she later tries to claim he or she was unaware.

What to expect from title and lenders

Title companies typically do not specifically search for building permits. Their focus is on liens, encumbrances, and clear ownership. However, an unpermitted deck could lead to issues if a future buyer's lender discovers it and requires it to be brought to code or removed before financing. This is where your as-is clause is crucial.

If you plan to fix and flip, your end buyer's lender might flag the unpermitted structure. Be prepared to address this by either getting the deck permitted, removing it, or ensuring your end buyer is a cash buyer or private lender who is comfortable with the situation. It is not financial advice.

Strategies for a smooth closing with an unpermitted deck

Maintain open communication with the seller and the title company regarding the as-is nature of the sale. Ensure all documentation, especially the purchase agreement, clearly reflects the terms. Do not try to hide the issue, but handle it transparently in the contract.

If you are assigning the contract, make sure your end buyer is fully aware and accepts the property with the unpermitted deck. Provide him or her with all the information you have. A surprise at the last minute can kill a deal, so upfront disclosure is key for all parties involved.

Questions people ask

Will the title company care about an unpermitted deck?

Generally, title companies focus on liens and ownership, not permits. However, an unpermitted structure can create issues for future financing if not addressed. Your 'as-is' clause is your protection here.

Can I get a permit for the deck after I buy the house?

Yes, you can often apply for retroactive permits or bring the deck to current code after purchase. This usually involves inspections, potential modifications, and fees. Factor these costs into your initial offer.

What if the seller won't disclose the unpermitted deck?

Your 'as-is' purchase agreement protects you regardless of the seller's disclosure. However, if you are aware, it is still best practice to have him or her acknowledge the property's condition in a general 'as-is' statement or directly if he or she knows.

Does an unpermitted deck affect property value?

Yes, it can. It represents a potential liability and cost to a future buyer, either for removal or to bring it to code. This reduces the property's value from an investor's perspective and should be reflected in your offer.