Q: I'm considering purchasing a house here and the agent told me that the current owners have done a complete remodel.

It looks really nice. What I'm worried about is that a friend of mine checked on the King County website and discovered that there were no permits for anything these people did. I also discovered that they just bought it less than a year ago for a third of what they are expecting me to pay. That sounds almost illegal. What can happen?

A: It isn't illegal to buy a "fixer", then do a quick remodel and sell it for a profit. That's been going on for a very long time and some people even do it for a living. They profit by purchasing less desirable houses and rehabilitate them. The fact that they often make a great deal of profit in a short time may feel like they're taking advantage of the future buyer, from an ethical point of view, but the fact is that they are following a very old American tradition to accumulating wealth.

Now as to the issue of permits, that can be a sticky situation. King County requires building permits for anything that changes the structure or systems of the house, or for additions to the house, even decks and porches. They also may require that the septic system be up-dated, repaired or replaced if the home is being enlarged. That could be pricey.

The County may, if they discover the situation or have a complaint, require retroactive permits. These are usually charged at twice the original fee plus penalties. Currently the County is charging less for these "already built" permits to encourage people to get them.

If you make an offer contingent on an inspection, which is the prudent thing to do, and you're able to verify the information your friend discovered, you might request that the seller obtain these retroactive permits so that you won't be liable for them later. You should also request a "Seller's Disclosure" form to see if they say that permits were obtained.