How Open Permits Can Delay or Derail Your Home Closing -- and How to Fix It

Buying or selling a home is already a complex process, but one hidden issue can bring everything to a screeching halt: an open permit. Many homeowners don’t even realize they have one until it’s too late, leading to costly delays, extra paperwork, and even canceled deals.

If you're in real estate—whether as a buyer, seller, or agent—understanding how open permits work and how to resolve them is key to ensuring a smooth closing.
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What Is an Open Permit?
An open permit means that a renovation, repair, or construction project was started but never officially closed with the city or local building department. This could happen for several reasons:
   ✅ The contractor never scheduled a final inspection
   ✅ The city has backlogs or processing delays
When a permit remains open, it signals that the work may not be up to code or unfinished, making it a risk for lenders and buyers.
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Why an Open Permit Can Delay Your Closing
If a title search reveals an open permit, the closing process may be put on hold until the issue is resolved. Here’s why:
   🚧 Lenders Won’t Approve the Mortgage – Banks don’t want to finance a home with unresolved work that could pose safety risks or lead to legal problems.
    🚧  Buyers May Walk Away – Buyers don’t want to inherit someone else’s unfinished project or be responsible for unexpected repairs.
   🚧Closing Costs Could Increase – The longer closing takes, the more expensive it becomes, especially if contract extensions or re-negotiations are needed.

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