Many homeowners remodel without getting the required permits, but then regret it when it’s time to sell. Obtaining an “as-built” permit can ease their woes.

Q: We hired a contractor a few years ago to tear down a wall and build a new bathroom. We didn’t get a permit for the work, but the contractor said it meets the local building code. Now we want to sell. Do we have to tell potential buyers that the work was done without a permit?

A: Yes, you should inform prospective buyers, in writing, that the bathroom was added without the proper permits. If you don’t, the buyers could sue you if something later goes wrong or if the city eventually discovers that the work was done without the proper paperwork and demands that the new owners tear the bathroom down.

Many buyers get nervous when a seller notifies them that a remodeling job was done without a permit, and then either demand a lower sales price or cancel the deal altogether. If you don’t want to take such a risk by making the required disclosure, consider calling the local building department and see if you can obtain an “as-built” permit for the bathroom before you list the home for sale.

An as-built permit is basically a permit that is issued after a project is completed and city inspectors determine that it meets the current building code. By getting an as-built permit now, you won’t have to make a disclosure about the addition later.

When issuing the as-built permit, the city might levy a fine on you for doing the work without first filing the proper papers. But the fine likely would be less than the steep discount the buyer might demand to purchase your home and its “illegal” bathroom – and would certainly be less than the legal fees you would incur if the seller sues because you didn’t get an as-built permit and then failed to make the required disclosure.

Q: I made an offer on a condominium last month. The seller thought that my price was too low, so he gave me a written counteroffer to sell if I paid him $5,000 more. I refused and started looking for a different property. Now the previous seller has contacted me and said that he will accept my original offer for the condo. Am I legally obligated to buy it because I put the offer in writing?

A: No, you don’t have to buy it. Real estate law in all 50 states says that a buyer’s offer is immediately null and void when a seller makes a written counteroffer. This means that you are free to continue looking for a different property and the seller has no basis to sue.

Of course, you also have two other options: You can purchase the condominium for the price and terms that you originally offered or make a brand-new offer for the condo at an even lower price.

Q: You have written that consumers are allowed to get one free copy of their credit report from the three major credit bureaus every year. Does this mean that I am entitled to only one report from a bureau of my choosing, or that each of the three must give me a free report every year?

A: Federal law requires each of the three largest bureaus – Experian, TransUnion and Equifax – to provide one free copy to consumers every year. This means that you can get a total of three free reports (one from each bureau) every 12 months.

You can keep fairly good track of your credit files by ordering the free reports at four-month intervals. The best place to order your free report is from www.annualcreditreport.com, the only Internet site that is jointly operated by the big three bureaus. Several other sites also offer free reports, but many of them are designed to lure you into buying additional credit-related services, and a few of them are outright scams.