Selling

Can You Sell a Home with Open Permits?

01.13.2025

As if selling a house and going through the process of moving wasn’t complicated enough. However, it turns out that some factors happen behind the scenes and can affect your transaction in ways you may not expect. No matter how beautiful your home appears, no matter how many people are interested and how many offers you receive, it could all be for nought if you don’t have your legal ducks in a row.

Open permits are an issue that can throw a wrench into the system if you aren’t aware of them. That’s why we are dedicating an entire post into what they mean and how to resolve any potential obstacles before they become troublesome to your plans.

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What Is an Open Permit?

Imagine you wanted to build an addition or undertake a significant renovation on your home. Chances are, you will need to obtain a building permit before you can begin construction. An open permit means that the municipality has granted this permission, but you have yet to resolve the permit. Now imagine that life gets in the way, and you never get around to your project. That open permit can remain on the books for years. Some homeowners can even forget all about them until the time comes to sell.

Without a resolution, the potential buyer and their agent have no way of knowing to which extent you have completed the work. Maybe you are halfway through the project. Or perhaps you haven’t even started. In the buyer’s eyes, you may have finished the work, but not in accordance with the permit. All of this can lead to a variety of complications in selling (or buying) a home.

A municipal inspector might issue a work order to resolve any deficiencies or code violations. These can be minor, or they can be major, leading to significant and unexpected repair costs. Since open permits may not be registered on the title of a home, they can be easy to miss.


Once any legal issues are taken care of, a successful sale is largely a matter of reaching qualified buyers. The posts below will help you make your listing stand out:


How Open Permits Affect a Real Estate Transaction

Imagine a buyer has visited your home, loved it, and places an offer that you decide to accept. As far as all parties are concerned, the sale is practically a done deal, and you both begin planning your next steps.

First, you need to get through the close. During this stage, the real estate lawyer will conduct a title search. If they find open permits, the buyer has just cause to back out of the transaction.

Think about it from the buyer’s perspective and what could be at stake. If the existing homeowner didn’t do the work, or didn’t do it properly, it will all have to be ripped out and redone. This represents a massive expense, not to mention the hit on the equity the buyer has in the property.

The presence of open permits is also stressful for the seller. You have plans, and are likely counting on the sale of your existing home for your next steps. Open permits can cause your transaction to fall through.

Legal and Financial Implications of Open Permits

Another possible scenario is that the buyer may not be able to obtain financing for your home even if they have excellent credit and a high income. The lender will only provide enough funding to cover the fair market value of a house. Since an open permit can devalue your property, the bank might decline the mortgage and cause the buyer to back out.

Even worse, the buyer may take legal action if the transaction closes and they later discover an open permit that you did not disclose. That kitchen renovation that you planned but never executed can end up costing far more than you anticipated if you end up facing a lawsuit. The best way to remedy all of these situations is to avoid them in the first place.


Working with a knowledgeable real estate agent can allow you to enjoy a successful sale and peace of mind. The posts below will help you make an informed decision:


What Can You Do to Ensure a Seamless Close?

Whenever possible, closing open permits will ensure they don’t disrupt your transaction. This allows you to hit the market with a clean title that will easily pass the closing process. If completing the work is no longer feasible, then you must disclose the open permit to avoid legal issues in the future.

Either way, open permits will present an extra challenge in selling your home. Some buyers won’t want to take the risk; others may wish to negotiate a concession on the price to compensate for the cost of the project.

It’s a delicate situation that calls for professional expertise. You’ll want to work with an experienced real estate agent who understands the nuances of the transaction. And whether buying or selling, a good real estate lawyer is worth their weight in gold. You want someone who will dig deep to do the research and perform due diligence.

We are always astounded at how someone will buy or sell a home worth $2 million and then go with an inexperienced lawyer to save on closing costs. Remember that you get what you pay for across the board – this is not the time to try to save a few dollars. In addition, be sure to invest in quality title insurance rather than going with the least expensive option.

All policies are not the same, and some will go much further to protect you than others. Never hesitate to advocate for your interests and be sure everyone on your team is performing the highest level of due diligence. Whatever side of the transaction you are on, it is your right to demand the best.

Do you want to experience a seamless and stress-free transaction when buying or selling your next home? Our experienced real estate agents are here with you every step of the way. Reach out to ana@asantos.ca or call us at 647.232.7317 for more information.