Your title search came back with an open permit from 2009. The seller says it's no big deal. Your agent isn't sure. Here's the honest answer — and how to evaluate whether it actually matters.
You're under contract on a Florida home. Everything looks good. Then the title search comes back with an open permit — sometimes one, sometimes several. The seller waves it off. Your agent shrugs. Your lender's attorney sends a terse email.
Is it a red flag? Or is everyone overreacting?
The honest answer: it depends. Here's how to evaluate it.
Not All Open Permits Are Created Equal
An open permit from 2018 for a roof replacement is very different from an open permit from 1994 for an addition.
The questions that matter:
What type of work was the permit for? A simple final inspection on a roof replacement is typically straightforward to close. An open permit for a structural addition with no as-built drawings is a different animal.
Was the work completed? Sometimes permits are open because the work was started and never finished. Sometimes they're open because the work was done but the final inspection was never scheduled. These have very different implications.
What code was in effect when the permit was issued? Work done in 1995 may not meet 2024 Florida Building Code. If the permit is closed now, an inspector will evaluate against the code in effect at the time of the original permit — generally — but corrections may still be required.
Is the property in a flood zone? Open permits on flood-zone properties carry additional complexity because floodplain compliance requirements may be triggered.
When Open Permits Are Manageable
An open permit is generally manageable when: - The work was clearly completed and just needs a final inspection - The permit is for non-structural work (roof, HVAC, plumbing fixture replacement) - The work is accessible for inspection without significant demolition - The original contractor is still in business and willing to close the permit
In these situations, closing the permit is often a matter of scheduling a final inspection, passing it, and getting the county's sign-off. Total cost: a few hundred dollars and a few weeks of time.
When Open Permits Are a Bigger Problem
An open permit is a more serious issue when: - The work was structural and no engineering documentation exists - The permit is for work that was started but not completed - Multiple phases of inspections were missed and the work is now concealed - The property is in a flood zone and floodplain compliance is unclear - The original contractor is gone and no one is willing to assume responsibility
In these situations, closing the permit may require engineering, targeted demolition to expose work for inspection, significant corrections, and months of process.
What to Do as a Buyer
Don't ignore it. Even if the seller says it's no big deal, you need to understand what you're taking on. Open permits are a buyer's problem after closing — they don't stay with the seller.
Get a detailed assessment. Have a licensed contractor pull the permit records and give you a written opinion on what closing the permit will require, how long it will take, and what it will cost.
Negotiate. Use the permit issue as a negotiating point. Options include: - Seller resolves the permit before closing - Price reduction to cover estimated resolution costs - Funds held in escrow at closing, released when permit is closed
Factor it into your offer. If you're making an offer on a property you know has open permits, price accordingly. The cost to close permits should be reflected in what you're willing to pay.
What Your Title Company Needs
Most Florida title companies will handle open permits one of two ways. They'll either require the permit to be closed before issuing title insurance, or they'll issue title insurance with a specific exception for the open permit — meaning the title policy doesn't cover issues arising from that permit.
An exception in your title policy is not nothing. It means if the open permit creates a problem down the road — an insurance claim denied because the work wasn't properly inspected, a code enforcement issue, a future sale that gets complicated — your title insurance won't cover it.
Understand what your title company is doing and what protection you're actually getting.
The Bottom Line
Open permits aren't automatically deal-breakers in Florida. But they're not nothing either. Get the facts, get a licensed contractor's opinion, negotiate appropriately, and go into closing with eyes open about what you're taking on.
Questions about your specific situation? We're licensed Florida contractors — not a call center. Book a free 15-minute call and get a straight answer.
Questions About Your Situation?
We're licensed Florida contractors — not a call center.
Book a free 15-minute call and get a straight answer about your specific situation.