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Why Sellers Must Close All Open Permits Before Selling Their Home

By
Real Estate Broker/Owner with Realty Concierge International MA #9535680 RI#REB0019277

Before selling your home, one of the most important steps you can take is confirming with your town or city that all open permits are properly closed.

An open permit means work was started but never officially inspected or signed off by the building department. Even if the project was completed years ago, the town still considers it unfinished until the final inspection is done.

Closing open permits protects you as the seller. Buyers, attorneys, and lenders routinely check municipal records during due diligence. If they discover an open permit, it can raise concerns about whether the work was done safely, correctly, or to current code. This often leads to delays, last‑minute negotiations, or even a buyer walking away.

If open permits are not addressed before listing, sellers may face:

  • Closing delays while inspections are scheduled

  • Unexpected repair costs if the town requires updates

  • Buyer credits or price reductions

  • Breach‑of‑contract disputes if the home isn’t delivered as promised

Taking the time to verify and close permits early ensures a smoother transaction, protects your equity, and gives buyers confidence in the home’s condition.

It’s a simple step that prevents major headaches later.

Posted by

 


Kelly McGovern, Broker/Owner

Realty Concierge International
Mobile: (508) 331-7158
eFax: (877) 491-3766
Email: Info@KellyMcGovern.Realtor
Website: http://www.RealtyConcierge.Realtor
9535680

Comments(9)

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Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

This is very important for all sellers to wrap up anything outstanding like this. Great reminder for our clients.

Jun 09, 2026 03:54 PM
Dorie Dillard Austin TX
Coldwell Banker Apex Realtors, LLC ~ 512.750.6899 - Austin, TX
Educating. Encouraging. Serving.

Good evening Kelly McGovern ,

You bring up a very important item that many sellers forget to double check. I was having new windows installed and because there was a permit not closed out on our pool therefore they couldn't get the permit to install our new windows! I had no idea and was furious with our pool company because they often sent a new client over for us to show them our pool and we tried to always accommodate them. A real issue becomes when no permits were issued!

Jun 09, 2026 05:44 PM
Joan Cox, Retired Broker/Owner
Denver, CO
Enjoying Every Day to Its Fullest!

Kelly, this is a great reminder for homeowners.  I remember watching someone's business, and her client had pulled a permit to add on an extension to their home, and that was the SF she put into MLS.  When I met the appraisal, it was an eye-opener for the seller.   MUCH less than what they were thinking.

Jun 10, 2026 12:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Good morning, Kelly... great reminder. I can't tell you how often permits have not been closed out. I think sellers believe their contractors do it as a matter of course, but they never double-check.

Jun 10, 2026 04:37 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

This is definitely important. Also, if someone did work with NO permit, they should start the process if the area requires permits.

Jun 10, 2026 05:15 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Wednesday morning, Kelly. This is important information to share with home sellers.

Jun 10, 2026 06:07 AM
Marie-Noelle Metseye
RE/MAX Northwest - Bothell, WA
Reward Trust with Excellence
 

This is such an important reminder for sellers. Taking care of open permits before listing can save a lot of stress, delays, and unexpected costs later, while also giving buyers more confidence in the home.

 
 
Jun 10, 2026 07:30 AM
Lew Corcoran
Better Living Real Estate, LLC - East Bridgewater, MA
Expert guidance. Exceptional results.

That was a sharp reminder of how one small loose end can snowball into a full‑blown delay, Kelly McGovern, and I’m glad you laid it out so clearly. It’s the kind of practical heads‑up that saves sellers a ton of stress and maybe a few gray hairs too. Thanks for breaking it down in a way that makes the whole process feel a lot more manageable.

Jun 10, 2026 08:54 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Yes, that is very important to do, and if it isn't done, there will be plenty of headaches, haha.

Jun 10, 2026 09:32 AM