Can you sell a house with open permits?

Published by Michael FrankeDrafted with AI; every statement checked against its source on November 4, 2026

Yes, you can sell a house with open permits in many cases, but an open permit can delay the sale. A buyer, lender, title company, insurer or local building office may want the permit file checked before closing. Start with the local building department. Ask what permits are open, expired, rejected, void or waiting on final inspection. Then address any final inspection, correction notice, code issue, permit reissue or disclosure item that applies in your state.

Key facts

Local permit offices can show construction and trade permit signoffs, inspection status and property standards violations. Nashville's online system is one example.
Fannie Mae generally requires improvements, alterations and repairs to be complete when the loan is sold to Fannie Mae.
Tennessee building permits are non transferable and expire two years from issue or when a certificate of occupancy is issued unless an exception applies.
Indiana and Tennessee disclosure forms ask about work done without required permits. Ohio requires written notice of received building or housing code violations before a title transfer agreement.
The City of Dallas, Georgia says unpermitted work is a violation of city ordinances and adopted building codes.

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Open permits are usually a closing issue, not just a form

An open permit usually means the permit file has not reached a closed status. The City of Oak Creek, Wisconsin shows a simple permit path: application received, permit issued, inspections performed, then the permit is closed after passing final inspection.

That does not make every sale impossible. It does mean the permit file can become part of buyer review, lender review, title review and local code review. If the work is unfinished, unsafe or missing inspections, the issue may have to be handled before closing.

Financing can be a bigger problem than the deed itself. Fannie Mae's selling guide says improvements, alterations and repairs generally must be complete when the loan is sold to Fannie Mae. If an appraisal is required and there are incomplete items or safety, soundness or structural issues, the appraisal must be subject to completion.

How to check whether permits are open

Start with the city or county building department where the house is located. Ask for the permit history by property address. If you have old paperwork, also give the permit number, contractor name, parcel number or project type.

Nashville's ePermits system is one example of what a local office may provide. It lets users find construction permits, trade permits and property standards violations for a property address. It also shows permit signoffs, inspection status and violation case updates.

Ask the office to explain the status of each permit in plain words. The question is whether the permit is open, expired, void, rejected, waiting on corrections, waiting on rough inspection, waiting on final inspection or closed. The labels can vary by city, so use the local office's wording.

Look for separate trade permits. Oak Creek says separate permits are required for electrical, plumbing and HVAC, and those permits have rough and final inspection steps. A remodel can look complete inside the home but still have one trade permit left open.

Final inspections, corrections and permit transfer questions

Closing a permit often means passing the required final inspection. In Tennessee, the final inspection is after the permitted work is complete and before occupancy. Tennessee also says the permit holder or the permit holder's agent must notify the building inspector when work is ready and must provide access for inspection.

Some work cannot simply be covered up and finished later. Tennessee says work must not go beyond the point shown for each successive inspection without first getting the building inspector's approval. In Oak Creek, electrical, plumbing or HVAC rough inspections must be scheduled before the rough building inspection, and the same process applies to final inspections.

If work was finished without the required permit, the local office may require an after the fact permit, inspection or corrections. The City of Dallas, Georgia says unpermitted work is a violation of city ordinances and adopted building codes. It may require a permit application after the fact, inspection of completed work, removal of walls or ceilings for inspection, system testing, corrections or reconstruction.

Do not assume a buyer can take over the same permit. Tennessee's rule says all building permits are non transferable. For other locations, ask the local building department whether the permit must be closed before sale, reissued, applied for again or handled another way.

What sellers may need to disclose

Disclosure rules are state specific. The rules below cover the states in the dossier and focus on permit, code and condition issues. A sale contract, local notice or court order can add more facts that need to be handled.

A disclosure form is not the same as fixing the work. Tennessee's disclosure form says the disclosure is not a warranty or a substitute for professional inspections. The same practical idea applies to open permits: telling the buyer about the issue and closing the permit are separate steps.

State	What the rule or form says	How it connects to open permits
Indiana	Indiana's seller disclosure form generally applies to sellers of 1 to 4 unit residential property. It asks about zoning, building code or restrictive covenant violations, government notices affecting the property and substantial additions or alterations made without a required building permit.	A known open permit, notice, code issue or substantial alteration without a required permit may need to be answered on the disclosure form. Indiana also requires the owner to disclose a material change at or before settlement or certify that the condition is substantially the same.
Ohio	Ohio Revised Code 5302.30 requires a property disclosure form for many residential transfers and covers material defects within the seller's actual knowledge. Ohio Revised Code 5301.253 also says an owner who has received written notice of a building or housing code violation must give the purchaser written notice before entering into a title transfer agreement.	If the open permit is tied to a written code notice, Ohio has a separate written notice rule. Ohio also says public records of certain code violation notices or orders are notice to later buyers and may be enforced against their interest.
Tennessee	The Tennessee Residential Property Disclosure Act says anyone transferring title to residential real property must provide information about the condition of the property. The form asks about room additions, structural modifications or other alterations or repairs made without necessary permits, and about such work not in compliance with building codes.	Open permits, missing permits and code compliance problems can all show up in Tennessee disclosure answers. Tennessee permit rules also say building permits are non transferable.
Georgia	The City of Dallas, Georgia says unpermitted work is a violation of city ordinances and adopted building codes and may affect property sales or refinancing.	For a Georgia house, the permit file is still worth checking with the local building department. If a local office has a notice, correction item or after the fact permit requirement, that issue may matter to the buyer and to closing.

How open permits can affect financing, title and insurance

A buyer using a mortgage may have less flexibility than a cash buyer. Fannie Mae says a lender must verify completion before the loan is sold to Fannie Mae. It also allows lender escrow for minor conditions or deferred maintenance only at the lender's discretion and only when those items do not affect safety, soundness or structural integrity.

Title can also come into play. Fannie Mae says the lender must obtain a final title report that does not show any outstanding mechanic's liens, take exceptions to postponed improvements or take exceptions to the escrow agreement. If unfinished permitted work involves unpaid contractors, it may make sense to read more about selling a house with a lien.

Code notices are a separate issue from permits, but they can overlap. If the permit problem includes a notice of violation, see the related guide on selling a house with code violations. The City of Dallas, Georgia also says unpermitted work may affect property sales, refinancing, insurance coverage and owner liability.

Common ways sellers handle open permits before a sale

The cleanest path is usually to get the permit file, list every open permit and ask what is missing. The answer may be simple, such as scheduling a final inspection. It may also involve corrections, trade inspections, engineering paperwork or an after the fact permit.

If the buyer's loan follows Fannie Mae rules, incomplete work and safety or structural issues may have to be completed or addressed through lender approved steps. Fannie Mae lets a lender escrow some minor items at its own discretion, but not if the items affect safety, soundness or structural integrity.

Selling to a cash buyer is one option when a seller does not want to finish remodeling or permit work before the sale. That does not erase local permit rules or disclosure duties. The buyer can still review the permit file and decide whether to accept the house with the issue.

If the open permit may slow the sale, compare that delay with the rest of your timeline. You can also read about how long it takes to sell a house and how to sell a house without a Realtor if you are deciding how to handle the sale process.

Get the permit history from the local building or code department.
Ask which permits are open and which inspections or signoffs are missing.
Ask whether any permit has expired or must be reissued.
Check for related code notices, correction notices and mechanic's liens.
Disclose known permit, code and condition issues as required in your state.

Frequently asked questions

Does an open permit automatically stop a home sale?

Not in every situation. The bigger risk is that the buyer, lender, title reviewer, insurer or local building office may require the issue to be addressed before closing. Fannie Mae rules can make incomplete work a financing issue when the buyer's loan will be sold to Fannie Mae.

How do I find open permits on my house?

Ask the local building or code department for the permit history by address. Nashville's public permit system, for example, lets users search construction and trade permits and view signoffs, inspection status and violation case updates. Some offices also let you search by permit number, parcel number or map number.

What if the permit expired?

Ask the local building department what it requires to reopen, reissue or close the permit. Tennessee has a state rule saying every building permit expires two years from the date of issue or when the certificate of occupancy is issued, unless an exception applies. Other procedures can depend on the local office and permit type.

Can the buyer take over the permit after closing?

Do not assume that. Tennessee rules say all building permits are non transferable. In other places, ask the local building department whether a permit can be transferred, reissued or must be closed before the sale.

Do I have to disclose work done without permits?

In some covered states, yes, the disclosure form or statute directly addresses this kind of issue. Indiana and Tennessee disclosure language asks about work done without required permits. Ohio has a separate written notice rule when an owner has received written notice of a building or housing code violation.

What happens if remodeling was done without a permit?

The local building office may require an after the fact permit, inspections, testing, corrections or reconstruction. Dallas, Georgia says inspection of completed work may require removal of walls, ceilings or coverings so the work can be inspected. It also says unpermitted work may affect property sales, refinancing, insurance coverage and liability.

Can I sell the house as is with open permits?

A buyer may accept a house with permit issues, but that does not remove disclosure duties or local code requirements. Lender rules can still matter if the buyer is financing the purchase. A cash buyer may have fewer lender conditions, but the permit file can still affect the deal.

Sources

Checked against each source on November 4, 2026. This page is general information, not legal or tax advice.

Codes Department Public Records and Information (Metropolitan Government of Nashville and Davidson County)
B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements (Fannie Mae)
Tenn. Comp. R. & Regs. 0780-02-23-.05, PERMITS (Legal Information Institute, Cornell Law School)
Tenn. Comp. R. & Regs. 0780-02-23-.07, INSPECTIONS (Legal Information Institute, Cornell Law School)
Seller's Residential Real Estate Sales Disclosure, State Form 46234 (State of Indiana)
Ohio Rev. Code 5302.30 (Ohio Laws / Ohio Legislative Service Commission)
Ohio Rev. Code 5301.253 (Ohio Laws / Ohio Legislative Service Commission)
FAQs (City of Oak Creek, Wisconsin)
Tennessee Code Bill Volume 2, 2025, 66-5-210 Disclosure form (Tennessee General Assembly)
FAQs (City of Dallas, Georgia)