What to Ask Your Title Company When Buying a Home: The Importance of a Permit Search
Buying a home is an exciting journey, but it’s also a significant investment that requires due diligence. One critical step in the home-buying process that many buyers overlook is requesting a permit search from their title company. Understanding past permits on a property can save you from unexpected issues down the road. Here’s why a permit search matters and what you should ask your title company before closing.
What is a permit search?
A permit search involves checking a property’s history for any building permits that were issued for renovations, additions, or repairs. This search ensures that all work done on the home was properly permitted and inspected by local authorities.
Why is a permit search important?
Unpermitted Work Can Be Costly – If previous owners completed work without proper permits, you could be responsible for bringing the home up to code.
Insurance & Liability Issues – Home insurance companies may deny claims related to unpermitted work.
Resale Challenges – When it’s time to sell, unpermitted work can complicate the transaction and lower your home’s value.
Safety Concerns – Uninspected work may pose risks, especially for electrical, plumbing, or structural changes.
What to ask your Title Company.
When working with a title company, be sure to ask:
Can you conduct a permit search on the property?
Not all title companies include this as part of their standard process, so it’s important to request it specifically.
What permits have been pulled for this property?
Get a full list of past permits and compare them with any updates or renovations the seller has disclosed.
Were any permits closed out properly?
Some permits may have been opened but never finalized, leaving you with unfinished legal obligations.
Are there any outstanding violations or liens related to unpermitted work?
Unresolved permit issues can become your responsibility after purchase.
Can I get a copy of the permit history for my records?
Keeping documentation of permitted work will help with future insurance claims and resale.
What to do if issues are found.
If a permit search reveals problems:
Negotiate with the seller to have them resolve outstanding permits before closing.
Consult with a contractor to estimate costs for bringing unpermitted work up to code.
Work with your real estate agent to ensure proper disclosures are made.
Check with the local building department for guidance on rectifying any issues.
Final Thoughts
A permit search is a small step that can save you from big headaches. Make sure to ask your title company the right questions and take the necessary precautions to protect your investment. Buying a home should be a joyful experience, and with the right knowledge, you can ensure a smooth transaction with no hidden surprises!
