Open Permit Information
Open permits are a common title issue that can delay or derail real estate closings. When a property owner obtains a building permit and begins work, the local building department expects the work to be completed and inspected. If the owner never requests the final inspection, the permit remains 'open' on the building department's records. Open permits create several problems: the work may not comply with building codes (since it was never inspected), insurance companies may refuse to cover damage related to unpermitted or uninspected work, future permits may be denied until the open permits are resolved, and title companies may require resolution of open permits before insuring the property.
Florida Legal Definition
Open permits in Florida are governed by the local building code administration and Florida Statutes Chapter 553 (Florida Building Code). Under §553.79, all construction work requires permits and inspections. Open permits do not automatically expire in all Florida jurisdictions; some jurisdictions expire permits after 180 days of inactivity (the standard under §553.791), while others maintain open permits indefinitely. The Florida Building Commission has addressed open permits through administrative rules, and some Florida counties have adopted amnesty programs allowing property owners to close old permits without penalty. Florida Statutes §125.56(4) authorizes counties to adopt local amendments to the Florida Building Code, which may address open permit procedures.
How It's Used in Practice
In practice, attorneys discover open permits during the title examination process through municipal lien searches. The attorney reviews the building department records to identify any open permits and advises the seller to resolve them before closing. Resolution options include: obtaining the final inspection (if the work was completed correctly), making corrections and obtaining the inspection (if the work was not code-compliant), applying for permit closure through a local amnesty program, and in some cases, demolishing non-compliant work. Title companies and lenders typically require open permits to be resolved before closing. For buyers, the attorney negotiates escrow holdbacks to cover the cost of resolving open permits if they cannot be closed before closing.
Key Takeaways
- Open permits indicate work that was never finally inspected.
- Discovered through municipal lien searches during due diligence.
- May prevent insurance coverage and future permit issuance.
- Resolution: final inspection, corrections, amnesty, or demolition.
- Title companies typically require resolution before closing.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
Business Attorneys
Real Estate Attorneys
Litigation Attorneys
Estate Planning Attorneys
Business Sale Closings
How to Sell a Business in Florida
Contact Information:
Tel: 941-867-7818
Email: info@barneswalker.com
Trust • Experience • Results