Who is liable when a flip buyer finds unpermitted work?
Short answer. The contractor. Under COMAR 09.08.01.08 the duty to pull permits and work to code is yours, and "the owner told me to" is no defense. Expect fines, remediation costs, and MHIC discipline.
- COMAR 09.08.01.08
Work it through
You're the contractor. Pick what you'd do, then see how each choice plays out.
Commissioner Davis
MHIC investigator who reviews complaints and conducts hearings
Jordan sold the house for $175,000. Four months later, the buyer's home inspector during a refinance appraisal discovers: unpermitted bathroom plumbing, electrical work without GFCI in the kitchen, and laminate flooring installed over damaged subfloor without repair.
The buyer traces the renovation to your MHIC number from the county records. Your phone rings.
- Consequences
The buyer has a legitimate complaint. Unpermitted work, code violations, and substandard materials — all tied to your license. Jordan is gone with his profit. You're facing: permit violation fines, mandatory remediation costs, MHIC disciplinary hearing, potential license conditions or suspension, and a permanent mark on your record. All for a $22,000 job that you probably lost money on anyway. This is why you don't let flippers drive your compliance decisions.
- Doesn't work
The MHIC doesn't care whose idea it was. YOUR license, YOUR responsibility. COMAR 09.08.01.08 places the duty on the prime contractor to secure permits and perform work to code. Blaming the property owner for directing you to skip permits actually makes it worse — it shows you knowingly violated the law at someone's request. That's not a defense, it's a confession.
All 15 complaints, warranties & the guaranty fund questions
- What is the MHIC Guaranty Fund?
- What happens if you ignore an MHIC complaint letter?
- Can a homeowner file an MHIC complaint after your warranty ends?
- Is a two-day delay grounds for an MHIC complaint?
- How should you prepare for an MHIC disciplinary hearing?
- What counts as project abandonment?
- How do you respond to an MHIC abandonment complaint?
- What documentation defends you against an MHIC complaint?
- How should you handle a warranty callback?
- Does your warranty cover damage the homeowner caused?
- What do you owe a client in an after-hours warranty emergency?
- How do you run a final walkthrough and punch list?
- What should a project completion package include?
- How do you handle a client disappointed with finished work?
- Who is liable when a flip buyer finds unpermitted work?