Open Permits at Closing in Florida: The Search That Finds Them and the Fix
Open permits closing Florida title companies flag are permits pulled and never closed by a final inspection. They pass to the buyer with the house. A lien search finds them; the seller should close them.
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Open permits closing Florida title companies flag are building permits that were pulled and never closed with a final inspection.
They pass to the buyer with the house. A municipal lien search finds them and the seller should close them before closing. Our guide to title insurance in Florida covers what the policy does and does not cover.
What an open permit is
A permit issued for work that never received a final inspection.
Roofs, water heaters, windows, pools and additions are the common ones.
The Florida Building Code requires a final for each.
An expired permit is a variant: the permit lapsed before the final.
Both stay on the property record.
Why it matters
The new owner inherits the obligation to close it.
Closing may require reinspection, repairs to current code, or redoing the work.
See our guide to unpermitted work and your mortgage in Florida for the related problem.
Some cities fine for expired permits.
Insurers ask about open roof permits.
How it is found
A municipal lien search ordered by the title company.
It reports open permits, code violations, unpaid utility bills and special assessments.
See our guide to closing costs in Florida.
A few hundred dollars; a week or two.
Order it at contract, not the week of closing.
Title insurance and permits
Open permits are not title defects and are usually excluded from the policy.
See our guide to title insurance in Florida.
A code enforcement lien that has been recorded is covered.
The lien search is the protection, not the policy.
Some title companies require the search; ask.
Who closes them
The seller, by custom and often by contract.
See our guide to AS IS contracts in Florida.
The seller calls the contractor or the building department and schedules the final.
If the contractor is gone, a new contractor may need to certify the work.
Weeks, sometimes months.
When the seller cannot
An escrow holdback at closing to cover the cost of closing the permit.
See our guide to seller concessions in Florida.
A price credit.
Or the buyer assumes the permit with eyes open.
Put it in writing either way.
Lenders
Most lenders do not require the permit search.
An appraiser may note visible unpermitted or unfinished work.
See our guide to low appraisals in Florida.
FHA and VA appraisers can condition the loan on completion.
The insurance binder is the practical lender check.
Insurance
An open roof permit means the four-point cannot confirm the roof age and condition.
See our guide to roof age and your mortgage in Florida.
Carriers may decline until the final is passed.
Wind mitigation credits depend on the permitted roof.
Close the roof permit first.
Closing an expired permit
Apply to reinstate or reopen the permit.
The work may need to meet current code, not the code at the time.
Windows and roofs from before 2002 can be a problem.
A fee and a new inspection.
The building department explains the path.
Work done without any permit
A different problem: no permit at all.
See our guide to unpermitted work and your mortgage in Florida.
An after-the-fact permit may be required.
Sometimes the work must be opened up for inspection.
Price it into the offer.
Condos
Unit permits for kitchens and baths are common open items.
See our guide to condo questionnaires in Florida.
Building permits for the association's work appear on the building, not the unit.
Ask the association about its own open permits.
Both matter to the next buyer.
Sellers preparing to list
Pull your own permit history before listing.
Most counties have it online by address.
Close what you can before the buyer's search finds it.
See our guide to what not to do before closing in Florida.
An open permit found late delays the closing.
Timing
Order the lien search at contract.
See our guide to closing date delays in Florida.
Give the seller the inspection period to schedule finals.
A holdback is the fallback when the date arrives.
Do not close blind.
Costs
Reinspection fees are modest.
Bringing old work to code can be expensive.
A roof that fails the final is a new roof.
Know the cost before you agree to assume anything.
A contractor's estimate is worth the fee.
After closing
If you assumed an open permit, close it promptly.
See our guide to the after-closing checklist in Florida.
Keep the final inspection record.
The next buyer's search will look for it.
Your insurer will too.
Reading the search report
Permit number, type, date issued, status and the last inspection passed.
Status codes vary by city; ask the title company to translate.
An expired status with a final inspection passed is usually a clerical close-out.
An open status with no inspections is the real problem.
Call the building department for anything unclear.
Where to start
Ask the title company to order the municipal lien search the day you go under contract.
Read it for open and expired permits and put closure on the seller.
Then start a conversation and we will time the closing to the finals.