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.

How to Check for Open Permits
Before buying or selling a home, always check for open permits. Here’s how:
   🔍 Visit Your Local Building Department – Many municipalities allow you to search for open permits online using the property address.
   📜 Work with a Title Company – A title search will typically uncover any open permits, liens, or other property issues.

How to Fix an Open Permit Before Closing
If an open permit is found, don’t panic—but don’t ignore it either. Here’s what to do:
   ✅ Contact the Local Permit Office – Ask what’s needed to close the permit. In some cases, it may only require an inspection.
   ✅ Hire a Contractor – If work is incomplete, hire a professional to finish it properly and up to code.
   ✅ Schedule a Final Inspection – Once the work is complete, request a final inspection to officially close the permit.
   ✅ Negotiate with the Buyer – If you’re selling, you may offer to fix the issue before closing or adjust the sale price to account for the repairs.
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Next Wave Title: Your Partner in Permit Searches
When it comes to navigating the complexities of open permits, Next Wave Title is your trusted ally. Our team of experts specializes in comprehensive permit searches, ensuring that no stone is left unturned in your real estate transaction.  Don't let open permits derail your real estate dreams. Let Next Wave Title's expertise take the stress out of permit searches and pave the way for a successful closing.

The Bottom Line
An open permit might seem like a small issue, but it can have a major impact on the sale of your home. Being proactive—checking for open permits early and addressing them before listing—can save you time, money, and stress. With Next Wave Title by your side, you can approach your real estate transaction with confidence, knowing that permit issues will be handled with the utmost professionalism and efficiency.