There is a home in my neighborhood that had an addition built on to it many years ago (by a previous owner) and it was never "permitted". The addition is approx. 600 sqft. The MSL listing for the home shows it as the much smaller size, though the flyer states the larger size (and something about it being stated by the owner).
What are the implications of this? Will the current owner have to have the tax man re-asses the property, will there be a fine, have to pay back taxes for a higher apprasal, etc? Or, will the new owner have to do this.
Should a potential buyer walk away from such a situation?