Permits and Renovations in NC: What Every Real Estate Agent Needs to Know

Whether it’s a flip, a fixer-upper, or a luxury remodel, renovations are a big part of North Carolina’s real estate market. But here’s the deal—not all renovations are created equal in the eyes of the law.

As a licensed broker, it’s your responsibility to understand when permits are required, what risks unpermitted work can pose, and how to guide your clients ethically and legally when this issue comes up in a transaction.

When Are Permits Required in North Carolina?

In general, permits are required for most structural, electrical, plumbing, and mechanical work in North Carolina. According to the NC Building Code and local municipal codes, permits are typically needed when work involves:

Structural changes (removing or adding walls, additions, decks, porches)
Electrical updates (new circuits, rewiring, panel upgrades)
Plumbing work (new lines, rerouting pipes, water heater replacement)
HVAC installation or modification
Garage conversions or basement finishes

Even something as simple as a window replacement may require a permit in certain jurisdictions—especially if it alters the structure or egress requirements.

When Permits Are Not Required

Minor cosmetic updates usually don’t require a permit, such as:

• Painting

• Flooring replacement

• Cabinet installs

• Appliance swaps (if no new wiring or plumbing is involved)

But when in doubt, check with the local building department. Permit requirements vary by city and county.

What If a Seller Didn’t Pull Permits?

This is where things can get tricky—and risky. As a real estate broker, you must handle unpermitted work carefully, because it may qualify as a material fact under NCREC rules.

Here’s what you should do:

1. Ask Questions
   If you’re listing a home with obvious renovations (kitchen overhaul, new bathrooms, etc.), ask the seller:

• Who performed the work?

• Were permits pulled?

• Are there final inspections and approvals?

2. Disclose What You Know
   If you know—or have reason to believe—that work was done without required permits, you are obligated to disclose that as a material fact to all parties.

3. Avoid Making Assumptions
   Don’t assume that “it looks fine” or “the buyer will never know.” If the work wasn't permitted, it could lead to:

• Safety issues

• Insurance claim denials

• Problems with appraisals or financing

• Fines or required removal from the local building department

4. Advise the Buyer to Investigate
   If you're the buyer’s agent, encourage due diligence—have a contractor or inspector assess the work, and check with the local building department about permits and code compliance.

5. Put It in Writing
   If a buyer proceeds despite unpermitted work, get that decision documented and acknowledged. Protect yourself and your client with clear written records.

Your Duty as a Real Estate Professional

According to the NC Real Estate Commission, brokers must disclose any material facts they know or reasonably should know. Unpermitted work—especially when it affects structure or systems—is typically considered material.

The NAR Code of Ethics also reinforces your duty to be honest and transparent with all parties, even when it’s uncomfortable.

Education Is Protection

At Providence Real Estate Education, we believe that knowledge is your best insurance policy. Our CE courses focus on real-world issues like renovation disclosures, material facts, and how to keep your license—and your reputation—intact.

Want to build confidence around disclosure and renovation risks?
Join us for our next continuing education course. We’ll cover everything from permits to property prep, so you’re always ready to serve with excellence.