How Open Permits Can Delay or Derail Your Home Closing–and How to Fix It

Many homeowners don’t realize they have open permits until it’s too late, which can lead to costly delays, extra paperwork, or even canceled closings. Understanding how open permits work—and how to resolve them—is essential for a smooth transaction.

What Is an Open Permit?

An open permit means that a renovation, repair, or construction project was started but never officially closed with the city or local building department. Common causes include:

• The contractor didn’t schedule a final inspection
• The local building department is experiencing processing delays

When a permit remains open, it signals that work may be incomplete or not up to code—posing potential risks for lenders and buyers.

Why an Open Permit Can Delay Your Closing

A title search that uncovers an open permit can temporarily halt the closing process. Here’s why:

• Lenders May Delay or Deny Financing – Banks want to avoid homes with unresolved work that could lead to safety or legal issues.
• Buyers May Hesitate – No one wants to inherit unfinished projects or surprise repair costs.
• Closing Costs Could Increase – Extended closings or contract renegotiations can add unnecessary expenses.

How to Check for Open Permits

Before listing or buying a home in Minnesota, it’s smart to check for open permits:

• Contact Your Local Building Department – Many cities, like Minneapolis, St. Paul, or suburban municipalities, allow online searches using the property address.
• Work with a Title Company – A thorough title search will uncover any open permits, liens, or other property concerns before closing.

How to Fix an Open Permit Before Closing

If you discover an open permit, address it proactively:

• Contact the Permit Office – Ask what is needed to close the permit; sometimes, a simple inspection is enough.
• Hire a Licensed Contractor – Complete any unfinished work properly and according to code.
• Schedule a Final Inspection – Ensure the permit is officially closed.
• Negotiate with the Buyer – If selling, consider fixing the issue before closing or adjusting the sale price as needed.

First Financial Title: Your Partner in Minnesota Real Estate

Navigating open permits doesn’t have to be stressful. At First Financial Title of Minnesota, we specialize in thorough title and permit searches, helping you identify and resolve issues before they impact your closing.

With our expertise, buyers, sellers, and agents can move forward confidently, knowing that no permit-related surprises will stand in the way of a successful transaction.

The Bottom Line

Open permits may seem minor, but they can significantly impact a home sale. By checking for them early and resolving any issues, you save time, money, and stress.

Partner with First Financial Title of Minnesota and let us handle the details—so you can focus on what matters most: closing smoothly and successfully.