Open Permits Can Open Up Issues For Property Owners

Permits are often an overlooked component of real estate transactions. So-called "open" permits can cause headaches for owners who are selling or financing their property. While title searches disclose encumbrances such as liens, mortgages, easements and restrictions, they do not disclose open permits, which must be independently searched at the local government.

When an owner obtains a permit to perform work on their property, the permit issued for that work is "open." Typically the work is completed, an inspection is performed by the local building department and the permit is then "closed" by the local government. If this process is not followed, a permit search will disclose it.