Unpermitted Renovations Just Cost These Jersey Shore Sellers $1.5 Million

A $1.5 million Jersey Shore home sale just collapsed in court, after a federal judge ruled that the sellers knowingly concealed nearly $400,000 worth of unpermitted renovations.

It’s a cautionary tale for homeowners and sellers everywhere: Fixing up your home without following construction standards can cost you far more than what you might have saved by simply following the rules.

What makes this case stand out isn’t just the million-dollar price tag. It lays bare a growing risk in today’s housing market: When renovation shortcuts collide with building codes, disclosure laws, and buyer protections, the consequences can be swift—and devastating.

The $1.5 million sale that fell apart

In 2019, William and Judith Breslin purchased a home in Margate City’s historic Marven Gardens for $575,000. It was far from their first rodeo: Judith had been a licensed real estate agent with 10 years of experience and it was the couple’s 26th home purchase, court documents reveal.

Over the next few years, they poured roughly $400,000 and “a lot of blood, sweat and tears into [the] house,” including upgrades like a new kitchen, bathrooms, HVAC system, and roof. In court proceedings, Judith still referred to the home as her “baby.”

But the couple didn’t get permits for any of the work, and that was a problem.

The City of Margate enforces a substantial improvements rule, requiring that an entire home be brought up to the same standards of new construction “if the cost of reconstruction, rehabilitation, addition, or other improvements to a building equals or exceeds 50% of the building’s assessed tax value.”

In flood-prone towns like Margate—where 98.3% of properties have a risk of flooding in the next 30 years, according to data from First Street—that can mean expensive projects such as elevating a home above FEMA’s flood elevation maps.

By avoiding permits, the Breslins also avoided triggering those costly requirements—but the shortcut backfired.

A federal judge ruled early this month that they had fraudulently concealed the unpermitted work, voided the $1.5 million contract, and ordered the full purchase price returned to buyers Vincent and Therese Novelli.

What the sellers hid

Although the Breslins had initially planned to keep the Tudor-style home, they put it on the market once renovations were finished—and trouble soon followed. After securing an initial offer, a home inspection uncovered major defects, including rotted floor joists, termite damage, and stucco problems detailed in a 44-page report.

One contractor estimated it would cost at least $112,500 just to repair the stucco. When the first buyers asked for a $115,000 price reduction, the Breslins refused and the deal fell apart.

Despite that warning, the couple went on to relist the home. This time, they landed a $1.5 million offer from the Novellis. On the required disclosure forms, the Breslins checked “no” when asked about code violations—even though they had received the detailed report from the original home inspector, warning of possible mold and water infiltration.

The issues didn’t stay hidden for long. When the Novellis discovered the hidden issues, they filed suit and a federal judge agreed the sellers had fraudulently concealed the problems. 

In addition to voiding the sale, the judge noted that the Breslins could be subject to $1,250 daily fines or even demolition orders to bring the property up to code.

The bigger lesson for sellers and buyers

While permits might seem like an unnecessary and time-consuming process when embarking on a home renovation, the story of the Breslins is a sharp reminder that building codes, frustrating as they may seem, aren’t just red tape.

In flood-prone communities like Margate, they’re the last line of defense against disasters both natural and financial. New Jersey faces up to $1.3 billion in flood-related damage, according to the Rhodium Group, and FEMA estimates that just one inch of floodwater can cause $25,000 in damage to a single home. That’s the risk these regulations are meant to manage, and why avoiding them is so dangerous.

For sellers, the lesson is simple: Shortcuts can come back to haunt you. For buyers, disclosures are just the beginning. Dig into the paperwork, review permits, and don’t be afraid to walk away. All listings on Realtor.com® include permit history, so you can spot red flags before you ever schedule a tour.