During the closing of a real estate transaction, purchasers are
often pre-occupied with securing financing for the property,
obtaining insurance, and other matters that are commonly recognized
as being the crux of completing a deal. One issue that is not
considered as frequently is whether an open building permit exists
on the property. As open building permits are not registered on
title, they can be an overlooked issue that may lead to upsetting
consequences for the parties involved.
What is an Open Building Permit?
A building permit is an authorization from a municipality for
specific works to be completed on a property. Such works can
include: demolitions, additions, material renovations, and other
types of construction on property. The construction of a patio, the
installation of a HVAC system, and even altering a new plumbing or
mechanical system, are all examples of works that often require
building permits.
