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Seems that the contractor was crooked and should eat the $15,000. Perhaps they falsely assumed that they didn't need a permit, as the homeowner's neighbors did not. However, they should have done their due diligence and should have checked with the city before proceeding. Unfortunately, this...

Looks like that there is now the modern building permit equivalent of TurboTax. It’s interesting that the article mentions contractors as the people responsible for getting the permits, and it talks about them getting them on behalf of existing homeowners. Perhaps the article writer is thinking...