I've heard horror stories of people not applying for permits and/or skipping getting their construction inspected.
When they go to sell the house, the potential buyers/real estate agents will contact the City to see what development has been performed on the house. If the City catches wind that there has been un-inspected work done, they make you tear it out.
I'm not sure if this is true, but I do know the city I live in keeps good records. I can go on-line and see what permits have been approved for any house.
I guess I just am a stickler for rules.
