Alex Silva, a Florida broker, helps you decide whether to permit the work first or price it in.
What you have to tell the buyer
Under Florida case law (Johnson v. Davis), a home seller must disclose known facts that materially affect value and that the buyer can’t readily see, even in an as-is sale.
Unpermitted work, like an enclosed garage, can be one of them. The Florida Realtors/Florida Bar AS IS contract also has a permits clause:
- You state that you know of no unpermitted work or unclosed permits, except what you disclose in writing.
- If you know of any, you give the buyer the plans and papers you have about that work.
Ask a Florida real estate attorney what to disclose.
Open permits when selling a house in Florida
- Look up your permit history early.Your city or county building department has the records. Title companies often find open permits in a municipal lien search before closing.
- Close out open or expired permits.Hire the original or another Florida-licensed contractor to finish the work and get inspections, or act as owner-builder. An expired permit may close without a new one if the department finds the work substantially complete.
- Permit unpermitted work after the fact.Many departments allow this, often for a higher fee. Walls may need opening, or an engineer’s review, which adds time.
Your options with an unpermitted addition or repair
Permit it first
- Often worth it when the work is sound. Alex’s market analysis (CMA) weighs cost and delay against price.
Price it in
- Disclose it in writing, and let the buyer check permits.
- If the buyer’s inspection finds permit issues, the AS IS contract has you share documents and sign forms, not spend money. The buyer may still cancel in the inspection period.
Sell as-is or for cash
- Compare a cash offer with listing as-is.
- The buyer’s lender and insurer may ask about it, as with an old roof.
Alex isn’t an attorney or contractor. Rules and fees vary, so check with your city or county building department.
Alex Silva, broker
Voyance Real Estate is led by its broker and owner, Alex D. Silva, who has more than 30 years in real estate and holds Florida broker license BK3153327.
Short-sale negotiation is his specialty: lender approvals, second liens, and valuation disputes.
He works with homes, condos, rentals, and commercial property across Central and South Florida, in English, Spanish, and Portuguese.
Unpermitted work questions
Will unpermitted work affect the buyer’s loan?
It can. For Fannie Mae loans, an appraiser who finds an addition without a required permit must comment on it and any effect on value.
Can the city or county fine the buyer over my open permit?
No. A city or county can’t fine an arm’s-length buyer, or deny them a permit, solely because a prior owner’s permit wasn’t closed. It can still pursue the owner and contractor, so buyers often ask you to close it. Work that never had a permit isn’t covered.
Can the building department close an old permit on its own?
It may close a permit 6 years after issue if it finds no apparent safety hazard, but it doesn’t have to. For code fines, see selling with a lien.
Sources: Permits law (553.79) · Johnson v. Davis · Florida Realtors · Miami-Dade · Fannie Mae
General real estate information, not legal, tax, or financial advice.
Selling a home with unpermitted work?
Tell Alex what was done, when, and whether a permit was pulled.