Or you already purchased the property and found out problems exist; we have the answers that can help you.
What is an opened or expired permit?
An expired or opened permit is a permit that was expedited thru the state’s building department and formally never had a final approval inspection during the life of the permit which in this case is 180 days for any permits opened in Florida. Once the permit is expired and it was never closed out by the correspondent city, the permit turns into an expired opened permit. Expired and opened permits are kept in the property’s record for years. Even if the property is sold out to different owners, until the city for the correspondent permit notice the expired permit(s) and opens a violation on the property. If when the property is sold out, the expired permits are not discovered, it becomes the responsibility of the new owners. Unfortunately the issues are related to the property not an individual owner. The requirements to fulfill expired permits can be tickets, fees, closing out any pending construction and demolishing any work that does not comply with the construction code in effect. Opened and expired permits can become very costly and very time consuming. Property Owner can reopen expired permits and get you credit for previous approved inspections to close out permits and clear your property.
Why do I need a search for any open permits? One of the mayor obstacles of property venders now days is the topic of expired permits, due to the fact that numerous cities have declared strongly on this issue. Property owners are being found at the mercy of the city inspectors when it comes time to close out the permit s in order to sell the home. The best way to relieve future headaches or delay the closing of the property is to inquire the condition of all permits in your property before even putting it in the market. This way you have the time necessary to close out the permits before any interested buyer.
Does the home owner’s insurance covers any opened expired permits? No! The title companies can close out the sale of the property with the open permit. Most of these companies do not make the proper search about open permits. You, as the purchaser should do your own proper search to make sure everything is in order. This is very convenience to you, after you are given the total selling price, you can negotiate to lower the cost to $10,000 per permit to renew, make the necessary repairs and closed out the permit. Who is responsible to closed out the opened permit? Generally the owner of the property is responsible! Most of the time, the owners leave money on an escrow account to cover all the cost of closing the permit(s). Buyers can also annul the contract if any expired permits are detected before doing the closing.
Is it really that important? Yes, if expired permits exist in the property and are not closed out before the closing of the property, they become the responsibility of the new owner, then he will be responsible to pay all fees pertaining to the closing of the permit(s) which if not closed out with the correspondent inspection, an opened permit case will be generated by the city with fines of up to $510.00 with a time frame of 30 days for the final approval otherwise the fine gets increased to $10,000.00 for per day penalties and even an intend to lien can be placed on the property. What is the worst case scenario? Your property will stayed with opened expired permit(s), with fines, liens etc. until one day you decide to comply with the requirements and take care of the issues. What does the law say? The purchaser should send in writing to the vender the existence of any opened expired permit(s) and any other illegal construction in the property. The vender within 5 business days after receiving documents from the purchaser should prepared a proposal cost necessary to closed out the permit(s) or any illegal construction. If you don’t received any correspondence you can take the matter to the court. For this reason it is recommended to prepare this documentation with a company duly authorized.
I have a property with an opened expired permit! What should I do to correct the problem now? The closing of any permit(s) can be prolonged and frustrating and physically demanding. It is not the field where the beginner must represent their own interest. Timeframe and errors can cost you a lot of money in the long run. Properties Solution Services will provide a professional licensed certify search for your convenience. Please fill out the form on line or call us at 305 228-8900
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