Posted on March 7th, 2024.

Are you considering buying a house in New York City? It's crucial to understand the concept of open permits and how they can impact your real estate transaction.

In this blog post, we'll delve into the essentials of open permits, including how to check for them and what to do if you encounter one.

Understanding Open Permits

Open permits are unresolved permits for construction or renovation projects that have not received final approval from the Department of Buildings (DOB). These permits can linger for various reasons, such as incomplete work, code violations, or failure to schedule required inspections. It's important to note that open permits can cause complications during property transactions and may require resolution before closing.

When a property has open permits, it means there are outstanding issues that need to be addressed. These unresolved permits can be a red flag for potential buyers, signaling potential safety hazards or legal liabilities associated with the property. Therefore, it's essential to thoroughly investigate the status of permits before finalizing any real estate transactions.

Potential Implications of Open Permits

Having open permits on a property can have several implications for buyers, sellers, and homeowners:

Legal Liabilities

• Open permits create legal vulnerabilities for homeowners, as they indicate that construction or renovation work may not have been completed in compliance with building codes and regulations. In the event of accidents or injuries resulting from unfinished or substandard work, homeowners may be held liable for damages. Resolving open permits is crucial to mitigate these legal risks and ensure compliance with applicable laws.

Sale Complications

• For sellers, open permits can significantly complicate the sale of their property. Prospective buyers may be wary of purchasing a property with unresolved permits, fearing potential liabilities or complications down the line. As a result, sellers may encounter difficulties in attracting offers or negotiating favorable terms. Addressing open permits prior to listing the property can streamline the sale process and increase the likelihood of a successful transaction.

Insurance Issues

• Insurance providers may view properties with open permits as higher risks, leading to challenges in obtaining adequate coverage. Insurers may be hesitant to issue policies for properties with unresolved permits, as they pose uncertainties regarding the quality and safety of the construction work. Homeowners may face difficulties in securing insurance or may be subject to higher premiums, further exacerbating the financial implications of open permits.

Property Value

• The presence of open permits can diminish the perceived value of a property in the eyes of potential buyers. Uncertainty surrounding the status of permits may deter buyers or prompt them to lower their offers to account for the perceived risks and potential expenses associated with resolving the permits. As a result, homeowners may experience delays in selling their property or may need to adjust their pricing expectations to align with market realities.

How to Check for Open Permits on a House

Before purchasing a property in NYC, it's advisable to conduct due diligence to uncover any open permits. Here's how you can check for open permits on a house:

• Online Permit Search: Visit the NYC Department of Buildings website and use their online permit search tool to look up the property address. This tool allows you to view the permit history for the property, including any open permits that may exist.
• Property Records: Review the property's records, which may include information on past construction or renovation projects. Look for any indications of open permits or unresolved issues related to construction activity.
• Professional Inspection: Hire a professional inspector who can assess the property for any visible signs of incomplete work or potential permit violations. An experienced inspector can help identify any red flags that may indicate the presence of open permits.

Resolving Open Permits

If you discover open permits on a property you're interested in purchasing, it's essential to address them promptly. Here are steps you can take to resolve open permits:

1. Contact the DOB

Upon discovering open permits, the first course of action is to initiate communication with the NYC Department of Buildings (DOB). Contacting the DOB allows you to gain insight into the status of the permits and understand the necessary procedures for resolution. This initial inquiry provides essential information that guides subsequent actions and ensures compliance with regulatory requirements.

2. Assess the Scope of Work

Once you've obtained information from the DOB, assess the scope of work required to address the open permits. Depending on the nature of the permits and the extent of unfinished or non-compliant work, you may need to enlist the services of licensed professionals such as contractors or architects. Collaborate with these experts to develop a comprehensive plan for resolving the permits and bringing the property into compliance with building codes and regulations.

3. Hire a Professional

Engage the services of a reputable licensed contractor or architect who specializes in the type of work required to rectify the open permits. These professionals possess the expertise and experience necessary to navigate the complexities of construction and renovation projects in compliance with regulatory standards. Working closely with a licensed contractor or architect ensures that the necessary repairs or modifications are executed correctly and efficiently, minimizing delays and ensuring quality outcomes.

4. Obtain Permits and Approvals

Depending on the nature of the work involved, secure the requisite permits and approvals from the DOB before commencing any construction or renovation activities. Adherence to permit requirements is essential to avoid further complications and ensure compliance with building codes and regulations. Work closely with your contractor or architect to prepare and submit permit applications, addressing any additional documentation or information requested by the DOB in a timely manner.

5. Schedule Inspections

Coordinate with the DOB to schedule inspections at various stages of the construction or renovation process to verify compliance with permit requirements. Inspections ensure that the work is completed according to approved plans and specifications, meeting all relevant building codes and regulations. Address any deficiencies or issues identified during inspections promptly to avoid delays in the permit closure process.

6. Close Permits

Once the necessary work has been completed and passed inspection, follow up with the DOB to request closure of the open permits. Provide documentation and evidence demonstrating compliance with permit requirements, including inspection reports and certifications from licensed professionals. Upon verification of satisfactory completion, the DOB will officially close the permits, signaling resolution of the outstanding issues associated with the property.

Importance of Legal Assistance

Navigating the complexities of open permits and real estate transactions in NYC can be challenging. That's where legal assistance can be invaluable. An experienced real estate attorney can provide guidance and representation throughout the process, ensuring that your interests are protected.

Frequently Asked Questions (FAQ)

How long does it take to close an open permit in NYC?

The timeline for closing an open permit in NYC can vary depending on various factors, including the complexity of the project and the responsiveness of involved parties. In general, the process typically takes several weeks to several months. Factors such as scheduling inspections, obtaining necessary approvals, and completing any required work can contribute to the overall duration.

How much does it cost to close an open permit in NYC?

The cost of closing an open permit in NYC can vary widely depending on the scope of work required to bring the property into compliance with building codes and regulations. Expenses may include permit fees, professional service fees, construction or renovation costs, and any fines or penalties incurred for non-compliance. It's advisable to consult with licensed professionals to obtain accurate cost estimates tailored to your specific situation.

What happens if open permits are not addressed before selling a property?

Failing to address open permits before selling a property can lead to significant complications for both sellers and buyers. Buyers may be hesitant to proceed with the transaction, and lenders may require resolution of permits before finalizing financing. Additionally, unresolved permits may result in legal liabilities or financial penalties for sellers, potentially jeopardizing the sale and resulting in delays or disputes.

Are there any risks associated with purchasing a property with open permits?

Purchasing a property with open permits carries inherent risks, including potential legal liabilities, compliance issues, and unforeseen expenses. Buyers may inherit responsibility for resolving open permits and bringing the property into compliance with building codes and regulations. It's essential for buyers to conduct thorough due diligence, including obtaining professional inspections and legal guidance, to assess and mitigate these risks before completing the purchase.

What are the potential consequences of purchasing a property with open permits?

Buying a property with open permits can pose risks for buyers, including potential legal liabilities, compliance issues, and unforeseen expenses. Additionally, unresolved permits may complicate the sale process and lead to delays or disputes. It's crucial for buyers to conduct thorough due diligence, including obtaining professional inspections and legal guidance, to assess and mitigate these risks before finalizing the purchase.

How can homeowners expedite the process of closing open permits?

Homeowners can expedite the process of closing open permits by proactively addressing any outstanding issues and working closely with licensed professionals. This includes promptly scheduling inspections, completing necessary repairs or modifications, and ensuring compliance with building codes and regulations. Seeking guidance from experienced professionals can help streamline the process and avoid delays.

What are the potential consequences of ignoring open permits on a property?

Ignoring open permits on a property can lead to various consequences for homeowners, including legal liabilities and financial repercussions. Failure to address open permits may result in fines, penalties, or legal action from regulatory authorities. Additionally, unresolved permits can complicate property transactions, affecting the sale process and potentially reducing the property's value. Moreover, insurance providers may be reluctant to issue policies for properties with open permits, further exposing homeowners to risks and liabilities. It's essential for homeowners to promptly address open permits to avoid these potential consequences and ensure compliance with regulations.

We can help

In conclusion, understanding open permits is essential for anyone involved in real estate transactions in NYC. By knowing how to check for open permits and addressing any issues that arise, you can avoid potential complications and ensure a smooth transaction.

If you need assistance with open permits or any other real estate legal matters, don't hesitate to reach out to the Law Offices of Radley Baine at 9176560050 or [email protected].