Open Permits (also referred to as Unclosed permits) are a continuing source of aggravation for Vendors (Sellers) and Purchasers in both the residential and commercial real estate market. This occurs when a contractor has done work but failed to call for the County or municipality final inspection and therefore, failed to close the permit. This is often discovered at the time of sale. Often, the Seller has no idea that the permit is still open. The Seller may have paid the contractor in good faith, believing the work to be fully completed. The contractor may now be long gone. The Buyer doesn't want to deal with an unclosed permit and the expense of satisfying the County. Tempers flare, deals blow up.
UPDATED October 2015. Buying a lot, home or condo from a developer? It might be a dream house. If, however, you are counting on being able to cancel that purchase agreement if you can not get financing, you better read the fine print. Sometimes these financing contingency clauses do NOT let you cancel the contract after being turned down for a loan. You applied for a loan with the institutional lender of your choice, with terms you could afford and were denied.
REAL ESTATE PURCHASE AND SALE: Buying a brand new condo, house or a lot? Have you signed a contract to purchase from a developer and are now having second thoughts? Want your money back...or just want changes to the contract? You've talked to the developer's sales agent and you've been told: "Sorry, it's a legally binding contract." Well, maybe it is, and maybe it isn't. Here are some thoughts: