Unpermitted Work in Louisville and Kentucky
Nearly half of Jefferson County's housing units were built in 1969 or earlier (ACS 2024 1-year estimates). Decades of remodeling mean unpermitted porches, basements, and garage conversions turn up regularly in older Louisville neighborhoods.
Here is how unpermitted work can affect a traditional sale in Kentucky:
- Appraisal — an appraiser may give less value, or none, to space added without permits. That can lower the appraised value a lender relies on.
- Loan conditions — government-backed loans have property condition rules, and a lender may ask for repairs, permits, or an inspection before approving a loan on a home with unpermitted additions.
- Louisville code enforcement — Louisville Metro Codes & Regulations can cite property conditions under the Property Maintenance Code (Chapter 156), and its Construction Review office handles building permits. Chapter 156 civil penalties start at $100 and increase with each inspection and each uncorrected violation.
- Buyer questions — buyers and their lenders may ask questions or request repairs when they find unpermitted work.
Louisville Permit Requirements
Louisville Metro's Office of Construction Review issues building, electrical, and HVAC permits. Plumbing work also needs a permit; ask Construction Review where to apply for the property. Work that typically needs a permit includes:
- Structural modifications (walls, roof, foundation)
- Electrical work beyond simple fixture replacement
- Plumbing additions or rerouting
- HVAC installation or modification
- Room additions, conversions, or enclosed porches
- Decks attached to the house, and freestanding decks over 200 sq ft or more than 30 inches above grade (residential project guidance)
- Finished basements (electrical and egress requirements)
What it costs to permit work after the fact depends on Construction Review's fees and on what changes the inspector requires. Get the fee schedule and written quotes from licensed contractors before deciding.
If Metro cites the property, Chapter 156 penalties increase with each inspection, and unpaid fines and abatement costs become a lien on the property that ranks ahead of a mortgage. Those amounts are paid or resolved through the closing, and the settlement statement shows what comes out of your proceeds.
Homes built before 1978 have an additional federal requirement: sellers of most pre-1978 housing must give buyers the federal lead-based paint disclosure and EPA pamphlet, including on cash sales (EPA).
Kentucky Disclosure Requirements
When a licensed real estate agent is paid in the sale, Kentucky requires the seller to complete the KREC Seller's Disclosure of Property Condition form (KRS 324.360). It asks whether additions or alterations were made and whether all necessary permits were obtained, using a "best of your knowledge" standard with an unknown option. In a direct sale with no agent, talk to a Kentucky attorney about what you should tell the buyer. We still want to know what you know about the work.
How a Direct As-Is Sale Can Help
- No lender requirements — a buyer not using a loan does not face a lender's appraisal or permit conditions
- No retroactive permits required from you — the buyer takes the work as it is
- Open code cases — any fines or liens are handled through the closing, and the buyer takes on the corrective work
- Closing timing — depends on ownership, title, payoffs, liens, signatures, and any lender or court requirements. Roger proposes a date only after reviewing those details.
Areas We Serve in Kentucky
- Louisville — neighborhoods including Shively, Okolona, PRP, Portland
- St. Matthews, Middletown, Jeffersontown
- Bullitt County — Shepherdsville, Hillview
- Oldham County, Shelby County
Frequently Asked Questions
Louisville Metro publishes permit data on the LOJIC open data portal, and Construction Review can help with records. If you can't find a record, ask Construction Review how far back its records go before assuming the work was never permitted.
If work doesn't meet code, Metro can require it to be corrected, and in some cases removed. Ask Construction Review what it would take to permit the work as it stands.
As the current owner, the property's condition is your responsibility regardless of who did the work. If a paid real estate agent is involved, the KREC form asks for what you know, to the best of your knowledge. When selling to us directly, tell us what you know about the work; we accept the property as-is.
Related Resources
- Unpermitted Work in Indiana
- Code Violations in Kentucky
- Major Repairs in Kentucky
- Understanding As-Is Sales
General information only; not legal advice. Louisville Metro ordinances and fee schedules change; confirm requirements with Codes & Regulations and a Kentucky attorney.