Real Estate Views from St Pete

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Be Proactive About Permits

In Florida, the new FAR offer and purchase contracts are very specific that the seller is responsible for not only obtaining permits for any work done on the property, but also for making sure any permits are closed out. In fact, in the latest version, after the blanks (1.5% of purchase price if left blank) for repairs and for wood destroying organisms, there is a similar blank for obtaining/correcting permit issues.

As part of our preparation for a listing appointment, we get a copy of the property's permit history from the city or governing body. That not only helps us correlate an enclosed porch or a new roof, it also gives us the opportunity to discuss all this with the homeowner, so they can begin any corrective action early, before there's a time crunch.

We also obtain this when we represent a buyer - if not before we make an offer, then as soon as possible afterwards. We'll share this information with the home inspector.

This is just one more opportunity to give value to our clients.

Sharon Simms, Real Estate Agent selling homes in St. Petersburg, Florida, the Gulf Beaches and the Tampa Bay area.

6 comments • Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS • July 30 2007 10:45AM

Comments

Thanks for the heads-up!

I don't think the FAR/BAR addresses this issue??

If this isn't addressed in the contract and it shows up on a title search, won't the title co. require the seller to pay it off before they issue a policy to the buyer? 

 

Posted by Orlando Homes 4 Sale Armando Rodriguez Real Estate Broker-GRI (QUEST REALTY SERVICES) over 4 years ago

My experience shows that it can become a negotiating tool at times...

a good attorney will not allow the transaction to clear with a cloud on title though...

Posted by David A. Podgursky, PA (Boynton Beach & Lake Worth Florida Real Estate Broker Associ) over 4 years ago
I am glad they put this verbiage in the new version. With the hurricanes of 2004-2005, many sellers were doing the work themselves, and many buyers were not even thinking about making sure proper permits were pulled. Some later got burned. Now even agents can get educated and make it routine to check for closed permits.
Posted by Jennifer Kirby, the Luxury Agent (Kirby Fine Homes) over 4 years ago
That is a very good idea that you are doing with the sellers. I am glad you pointed that out. I know in Florida the title company will collect for any money owed and give clear title however from a negotiating stand point what you are doing is great. Also, it shows that you did your homework prior to meeting with the seller. Katerina
Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Homes For Sale (International Properties and Investments, Inc.) over 4 years ago

Armando - I don't think the title searches look for unpermitted work or unclosed permits, unless the city has put a lien on the property or made some sort of legal filing, which generally doesn't happen.

David - yes, it can be a negotiating tool. As I said to Armando, though, I don't think these are clouds on the title since I don't think they show up on a search.

Jennifer - I'm glad it's there, too. It's unfortunate when a buyer finds out after the fact that something has to be torn down, or that he can't do new work until old work is corrected.

Nestor and Katerina - I think one of the values we provide to our clients is "insurance", that is, discovering things proactively so that they can be addressed prior to closing.

Posted by Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS (ALVA International, Inc.) over 4 years ago

Unfortunately many of us still use the FAR/BAR contracts which i don't think addresses this issue.

I wonder if FAR is aware of the dissimiliarities?

Posted by Orlando Homes 4 Sale Armando Rodriguez Real Estate Broker-GRI (QUEST REALTY SERVICES) over 4 years ago

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