Who is responsible for open permits: the buyer or the seller?

Updated October 2, 2026 · 3 min read

Short answer

The city holds whoever owns the house responsible. Before the sale that is the seller. After closing it is the buyer, even though the previous owner started the work. Who pays to close an open permit found during a sale is negotiable, and the agreement should be written into the contract.

Two different questions

The first question is who the city will deal with. The answer is always the current owner, because a permit belongs to the property and not to the person who applied for it.

The second question is who pays. That is decided between buyer and seller, and it only binds them if it is in the purchase contract.

The usual ways it is handled

The seller closes the permit before closing. This is the cleanest outcome for a buyer.
The seller gives a credit and the buyer takes on the work after closing.
Money is held in escrow until the permit is closed.
The buyer accepts the house as it is, usually at a lower price.

Before you agree to take one on

1Ask the building department what is still required to close the permit.
2Get a contractor's estimate for any corrective work.
3Have your attorney or agent write the arrangement into the contract.

Common questions

Can I make the previous owner pay after closing?

That depends on your contract, what the seller disclosed and your state's law. It is usually much harder after closing than before, which is why checking early matters. Ask a real estate attorney.

Does the seller have to tell me about open permits?

Many states require sellers to disclose known permit problems on a disclosure form, but requirements vary, and a seller may not know about a permit opened by an earlier owner. Checking the record yourself is more reliable.