Addition not included in appraisal

Q. When we bought our home 22 years ago, it had two unfinished rooms in the attic. About 12 years ago I finished these rooms, making two additional bedrooms and a bathroom, but this was done without a building permit. Now that we are planning to sell, the appraisal shows the house as a one-story with only two bedrooms and one bathroom. Because of this, we can't sell the house for its actual value. Our Realtor is not sure what to do. What do you recommend?

A. When you converted the attic space to living space, a permit was required. Any construction or alterations that involve that many square feet and any work that involves plumbing and electrical changes require a permit. The essential purpose of the permit process is to ensure that buildings comply with standards for structural integrity and for heath and safety compliance. Fortunately, there is a process for permitting and inspecting work after it has been completed.

You'll need to visit the local building department and explain to them that you made the changes 12 years ago, not realizing that permits were required for nonstructural work. If the people there are reasonable, which may or may not be the case, they will issue an "as-built" permit, will inspect the work, and hopefully will not require you to remove drywall to facilitate plumbing and electrical inspections within the walls. If the work is deemed acceptable, it will be signed off, and the appraiser will be able to reassess the value of the property.

Q. We hired a contractor to build a new home and moved in about seven months ago. The house next door is uphill from ours, and water drains from their property into our yard. Most of the time, there is a large puddle on our patio, and it's even worse for weeks after a heavy rain. Our builder says this is caused by the neighbor's irrigation system, but we checked this out and their yard has no irrigation. Shouldn't our builder take responsibility for this drainage problem?

A. Builders are responsible for providing adequate surface drainage, and this should have been included in the plans for your home. Regardless of the water source, whether from rain or the neighbor's irrigation, the grounds should have been graded for drainage or provided with a French drain to divert surface water away from the building and yard areas. The builder should take responsibility for this. If he is not willing to do so, you should file a complaint with the state agency that licenses contractors. You can also get some advice from an attorney who specializes in construction defect law.

• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.

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