Why Your ADU Might Still Be Illegal (Even With a Permit)

Every month I inspect properties where the owner tells me, “The ADU is permitted.” They show me paperwork. They paid fees. They hired a contractor who pulled a permit.

And yet, when I pull the actual permit records, the story is different. The permit exists, but it was never finaled. Or it was finaled, but the construction doesn’t match the approved plans. Or the permit expired before work was completed.

Having a permit is not the same as being legal. Here’s what can go wrong—and what it means for your property.

Understanding the Difference: Permit vs. Legal

The permit process has multiple steps:

The Full Permit Process

1. Application: You apply for a permit and submit plans
2. Plan Check: The city reviews plans for code compliance
3. Permit Issued: After corrections, the permit is issued
4. Construction: Work is performed per approved plans
5. Inspections: City inspectors verify work at various stages
6. Final Inspection: All work is verified complete and compliant
7. Permit Finaled / Certificate of Occupancy: The permit is closed out (and for new dwelling units, a CO may be required)

Many property owners stop after step 4. They pulled the permit, did the work, and moved on. But without steps 5-7—at minimum, getting the permit “finaled”—the ADU isn’t legally complete. It’s an open permit case, and the city considers it active construction.

Problem 1: Open Permits (Never Finaled)

This is the most common issue I find. The permit was issued years ago, construction was completed, tenants moved in, and everyone forgot about the final inspection.

How This Happens

• Contractor finished work and left without scheduling final
• Owner got busy and never followed up
• One inspection failed and was never re-scheduled
• Owner assumed contractor handled everything

Why It Matters

An open permit means:

• The city has no record that the work was completed correctly
• The work is legally considered incomplete construction
• If discovered, you’ll need to close the permit—which may require exposing work for re-inspection
• Insurance may have coverage questions about an unpermitted structure
• Sale or refinancing can be complicated by open permits

Not Sure About Your Permit Status?

I pull permit records before every inspection. I’ll tell you exactly what the City or County will see—before enforcement does. Schedule a pre-inspection with permit research →

Real Example

I recently inspected a duplex with a “permitted” garage conversion ADU. The owner had the original permit from 2019. But the permit had been issued, one rough inspection was completed, and then… nothing. No electrical final, no plumbing final, no building final, no certificate of occupancy. The tenant had been living there for four years in what the city considered active construction.

Problem 2: Deviations from Approved Plans

Even when permits are finaled, what was built might not match what was approved.

Common Deviations

• Size changes: ADU built larger than permitted square footage
• Layout changes: Bedroom added that wasn’t on plans, bathroom relocated
• Setback violations: Structure built closer to property line than approved
• Height changes: Ceiling raised or roof pitch modified
• Window changes: Different windows than specified (affects egress requirements)
• System changes: Different electrical or plumbing than approved

Why Deviations Happen

Sometimes owners make changes during construction without realizing permits need to be amended. Sometimes contractors deviate from plans to solve problems or cut costs. Sometimes subsequent owners modify the space after the original permit was closed.

Why It Matters

If the construction doesn’t match the approved plans, the approval is essentially void. You have what was approved on paper, but something different in reality. Depending on the severity, this can require:

• Filing amended plans and getting new approval
• Bringing unpermitted work into compliance
• In some cases, removing work that can’t be permitted

Problem 3: Expired Permits

Permits have expiration dates. In LA, most permits expire if no inspection has occurred within 6-12 months (depending on permit type). If your permit expired before getting all inspections signed off, you may need to start over.

Expired Permit Scenarios

Scenario 1: Work started, permit expired, work continued anyway. The work completed after expiration is unpermitted.

Scenario 2: Work completed, but final inspection was never requested before expiration. You’ll need to re-apply, and code requirements may have changed since the original permit.

Scenario 3: Work partially completed, permit expired, project abandoned. The structure is in limbo—partially permitted construction that was never finished.

Problem 4: Pre-ADU Law Conversions

California’s ADU laws have changed dramatically since 2016. Before the recent wave of ADU-friendly legislation, many garage conversions and second units were built:

• Without permits (completely illegal)
• Under different permit categories (not as an ADU)
• Under old codes with different requirements

The “It’s Been There Forever” Problem

I often hear: “This unit has been rented for 20 years. Nobody has ever said anything.”

That doesn’t make it legal. It means enforcement hasn’t caught up with it—yet. RHHP is systematically inspecting properties that have never been inspected before. Units that flew under the radar for decades are now being discovered.

RHHP and Unpermitted Units

When RHHP inspectors find evidence of unpermitted dwelling units, they can refer the property to Building & Safety. This opens a separate enforcement case that operates independently of the RHHP habitability process. See my article on What Happens When RHHP Finds Unpermitted Work for more detail.

What To Do: Verifying Your ADU’s Status

Steps to Verify ADU Legality

• Pull permit records: Get the complete permit history for your property through the Building & Safety portal
• Check permit status: Look for “Final” or “Certificate of Occupancy Issued”—not just “Permit Issued”
• Compare plans to reality: If possible, get copies of approved plans and compare to what was actually built
• Verify unit count: Check that the assessor’s records match the actual number of units
• Check certificate of occupancy: Confirm a C of O was issued for the ADU specifically

If You Find Problems

If your ADU isn’t fully permitted, you have options:

Close the open permit: If the only issue is an open permit and work was done correctly, you may be able to schedule inspections and close it out. You’ll likely need to expose some work (open walls) for inspection.

File corrective permits: If there are deviations from plans, you may be able to file amended plans and get the changes approved retroactively.

ADU amnesty programs: LA has periodically offered amnesty programs for unpermitted ADUs. Check with the city or county to see if any current programs apply to your situation—availability and requirements change over time.

Full legalization: In some cases, you may need to apply as if building a new ADU, even though the structure already exists. This is more expensive but may be the only option for significantly non-compliant units.

The Pre-Inspection Advantage

When I inspect a property, I pull permit records first. I want to know what the city thinks exists before I see what actually exists. This comparison often reveals:

• Units the city doesn’t know about
• Open permits that were never closed
• Square footage discrepancies
• Construction that doesn’t match approvals

Finding these issues during a pre-inspection gives you time to address them strategically—before an RHHP inspector shows up and potentially refers them to enforcement.

Frequently Asked Questions

How do I check if a permit is finaled?

You can search permit records through the LA County Building & Safety portal or LADBS for LA City properties. Look for “Final” status or “Certificate of Occupancy Issued”—not just “Permit Issued” or “Approved.” I include full permit history research with every inspection I do.

Can I rent an ADU with an open permit?

Technically, an open permit means the work isn’t complete—which means the space isn’t approved for occupancy. In practice, many landlords do rent units with open permits, but you’re taking on risk. If discovered, you may face enforcement action, and insurance claims could be complicated.

What if the work matches the plans but was never finaled?

This is the best-case scenario for an open permit. You’ll likely need to schedule inspections and may need to open some walls for the inspector to verify work. It’s inconvenient and has costs, but it’s usually resolvable.

Related Articles

If you’re concerned about ADU legality or permit issues, these articles may also be helpful:

• What Happens When RHHP Finds Unpermitted Work — The enforcement chain and your options
• Due Diligence Inspections for Multifamily Buyers — Why permit research matters before you buy

Final Thoughts

ADUs are valuable. They provide housing, generate income, and add property value. But that value depends on legality. An unpermitted ADU—or one that was permitted but never properly closed out—is a liability, not an asset.

If you’re not 100% certain your ADU is fully permitted and compliant, find out now. The cost of verification is minimal compared to the cost of enforcement action later.