Private Money Hawaii
Unpermitted Work in Hawaii: What Buyers Need to Know
If you’re buying property in Hawaii, unpermitted work is one of the most common — and misunderstood — issues you’ll encounter.
Many homes look “finished” on the surface.
But in Hawaii, what matters is whether the work was permitted and finalized.
Understanding unpermitted work in Hawaii can be the difference between a smooth closing and a deal that stalls, loses value, or falls apart late in escrow.
Quick Summary
Unpermitted work in Hawaii can affect value, financing, insurance, and resale. Buyers should check permit history using the property’s TMK to identify risks before making an offer.
TL;DR
Unpermitted work is common in Hawaii, especially in older homes. While it doesn’t always kill a deal, it changes risk, value, and financing options. Smart buyers verify permits by TMK early and choose financing strategies accordingly.
Key Takeaways
- Unpermitted work is common in Hawaii, especially in older homes
- Permit records are tied to the TMK, not the address
- Unpermitted space may not count toward value or income
- Financing options change based on permit status
- Early TMK and permit review protect buyers from costly surprises
What Is Considered Unpermitted Work?
Unpermitted work generally includes:
- Additions or expansions without permits
- Converted garages or carports
- Unapproved ohanas or ADUs
- Structural changes without inspection
- Electrical or plumbing upgrades without permits
- Enclosed lanais without approval
Cosmetic work (paint, flooring, cabinets) usually does not require permits, but anything structural or system-related often does.
Why Unpermitted Work Is So Common in Hawaii
Unpermitted work is widespread due to:
- Older housing stock
- Informal renovations decades ago
- High construction costs
- Long permit timelines
- Multi-generational housing needs
Many sellers didn’t act in bad faith — but buyers still inherit the risk.
How to Check for Unpermitted Work (The Right Way)
Step 1: Find the Property’s TMK
Permit records in Hawaii are tied to the TMK, not just the address.
Verify the TMK using:
- County property tax search
- MLS listings (Taxkey)
- Deeds or title reports
Step 2: Pull Permit History by TMK
Use the county permit system to review:
- Issued permits
- Final vs open permits
- Expired or void permits
Compare the permit history to what you see on-site.
Red flag:
Square footage or units visible that don’t appear in permit records.
Common Types of Unpermitted Work Buyers Encounter
1. Additional Bedrooms or Living Space
Often added without permits — may not count toward appraised value.
2. Garage or Carport Conversions
Frequently unpermitted and may violate zoning or parking requirements.
3. Ohana or ADU Units
Sometimes permitted as “storage” or never permitted at all.
4. Enclosed Lanais
Common but often unapproved.
Each type has different risk and resolution paths.
How Unpermitted Work Affects Financing
Conventional, FHA, and VA Loans
These loans are strict:
- Appraisers may exclude unpermitted space
- Lenders may require permits to be resolved
- Loan approval can be delayed or denied
For FHA and VA in particular, habitability and safety standards matter.
Hard Money Loans
Private lenders still evaluate unpermitted work — but differently.
They focus on:
- As-is value
- Exit strategy
- Borrower experience
Unpermitted work is:
- A pricing factor
- A timeline consideration
- Not always a deal breaker
This is why private money is often used as a temporary solution, with a plan to resolve permits or refinance later.
Can Unpermitted Work Be Fixed?
Sometimes, yes — but it depends on:
- Zoning compliance
- When the work was done
- Current code requirements
- Scope of the work
Possible outcomes:
- Retroactive permits
- Partial legalization
- Removal of unpermitted structures
- Reduced valuation
The earlier you identify the issue, the more options you have.
What Smart Buyers Do Differently
Experienced Hawaii buyers:
- Assume unpermitted work exists until proven otherwise
- Verify permits early using the TMK
- Adjust offers and timelines accordingly
- Match financing strategy to property reality
They don’t wait for underwriting to uncover surprises.
Not Sure If Unpermitted Work Will Kill the Deal?
If you’re looking at a Hawaii property and want to understand unpermitted work tied to the TMK, how it affects value, and which financing paths still make sense, a quick review can save you from expensive mistakes.
You can request a free, no-obligation property and financing review to:
- Verify permit history by TMK
- Identify unpermitted structures early
- Understand lender and financing implications
- Avoid surprises during appraisal or underwriting
There’s no pressure — just clarity before you commit.
Request your free property review and move forward with confidence.
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Address: 411 Hobron Ln #3912, Honolulu, HI 96815
Call: +1(808) 753-1204
Email: funding@privatemoneyhawaii.com
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PRIVATE MONEY HAWAII
Private Money Hawaii
411 Hobron Ln #3912, Honolulu, HI 96815
Phone: (808) 753-1204
Email: funding@privatemoneyhawaii.com
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