Dispositions

Finding cash buyers for a property with an open permit

Finding cash buyers for a property with an open permit requires targeting investors who understand the risks and potential remediation costs. Focus on buyers experienced with renovations or those specifically looking for properties they can permit and finish to his or her own standards.

November 8, 2026 · 3 min read

Understanding what an open permit means

An open permit means that work was started on the property, and the necessary permits were pulled, but the final inspections were never completed or approved. This is often the case when a contractor abandons a job, a homeowner does DIY work and forgets, or the work failed inspection.

An open permit can lead to fines, stop-work orders, or require the new owner to bring the work up to current code. It is a liability that needs to be resolved before the property can be fully utilized or easily resold by the end buyer.

Identifying the right type of cash buyer

Not all cash buyers are comfortable with open permits. You need to target buyers who are either experienced fix-and-flippers with in-house contractors or those who specialize in properties with code violations or deferred maintenance. These buyers understand how to navigate the permitting process.

Avoid buyers who are looking for a quick, clean rental. They typically want properties ready for tenants, and an open permit represents an immediate headache and potential capital outlay they may not be prepared for.

Transparently disclosing the open permit

Always disclose the open permit upfront. Provide details on what the permit was for, when it was pulled, and its current status. You can often obtain this information from the local building department. Transparency builds trust and saves everyone time.

Suggest that interested buyers investigate the permit history themselves. This allows him or her to understand the scope of work needed to close the permit and assess the potential costs and time involved. It is not legal advice; consult with an attorney for specific situations.

Adjusting the deal terms to reflect the risk

A property with an open permit carries increased risk and potential costs for the buyer, so your asking price or assignment fee needs to reflect this. Expect a lower offer compared to a property with a clean permit history. The buyer is taking on the burden of closing out the work.

Consider offering a longer due diligence period to allow the buyer to get his or her own estimates for completing the work and closing the permit. This flexibility can make your deal more attractive to the right type of buyer.

Leveraging your buyer network and resources

Tap into your network of cash buyers, specifically those who have previously purchased properties with issues. Use your CRM to segment your buyers by experience level and willingness to take on complex projects. You might also find success with buyers who are also contractors and can resolve the issue themselves.

Consider using a memorandum of contract to protect your interest while the buyer does his or her extensive due diligence. For more on finding cash buyers, see /how-to-find-cash-buyers-for-wholesale-deals.

Questions people ask

Can an open permit prevent a buyer from getting financing?

Yes, traditional lenders will almost always require open permits to be closed before they will fund a loan. This is why cash buyers are essential for these types of properties.

How can I find out what the open permit is for?

You can usually visit your local city or county building department website or office. They maintain records of all permits pulled and his or her status for each property.

Should I try to close the permit myself before finding a buyer?

It depends on your time, expertise, and capital. Closing the permit would likely increase your potential assignment fee, but it also adds to your risk and effort. Weigh the costs against the potential gain.