Permits & Disclosure — A Common Friction Point

Unpermitted work is one of the most common issues that surfaces during inspections.

Even if work was done years ago…
and even if it “looks fine”…

If it wasn’t properly permitted, it can raise concerns for buyers, lenders, and insurers.

Unpermitted work often surfaces during:

• Inspections
• Insurance underwriting
• Buyer due diligence

And if it causes a deal to fall apart:

The next buyer will likely raise the same issue again.

Open Permits — Handle Them Before You List

Open or expired permits are one of the most common issues that surface during inspections.

Even if the work was completed…
an open permit signals that the job was never formally closed or approved.

Why This Matters

Open permits can:

• Delay closing
• Raise concerns for buyers
• Trigger lender or insurance questions
• Require additional inspections or approvals

The Smart Approach

Whenever possible, sellers should:

• Close out open permits before listing
• Provide documentation of completed work
• Confirm final approvals with the municipality

What Happens If You Don’t

If an open permit is discovered during the transaction:

• It becomes a negotiation point
• It can delay closing
• And if the deal falls apart…

the next buyer will likely raise the same issue again.