Open permit versus no permit

They are different problems. An open permit is a paper trail that stops halfway: the work was permitted, inspections began, and a final was never obtained. The jurisdiction's records show it, and a buyer's lender or title company may ask for it to be resolved.

Unpermitted work has no record. A garage converted to a bedroom, a patio enclosed, an addition built, a bathroom added. Nothing shows in the permit history, and the square footage on the appraisal district record may not match the house. That affects legal use, insurance, and appraisal, and in Houston it can also violate a private deed restriction.

Why closing out a permit is harder than it sounds

Getting a final inspection years later often means opening up finished work so an inspector can see what is behind it, bringing older work up to the current code rather than the code in force when it was done, and sometimes hiring a licensed contractor to re-do work the owner did themselves.

In practice owners price that out and stop. Austin's review timelines, Houston's permitting centre, Dallas development services, and San Antonio's development services department all have their own procedures and queues, and none of it is quick. We do not ask you to go through any of it.

What we buy

  • Open permits from work started and never finalised
  • Garage conversions, enclosed patios, and carports built without permits
  • Room and second-storey additions with no permit history
  • Bathrooms and kitchens added without permits
  • Electrical and plumbing work done by the owner
  • Houses where the appraisal district square footage does not match reality
  • Properties with both an open permit and a code case

Disclose it, and it stays priced in

Open permits and unpermitted work show up in diligence — in the permit history, in an appraisal district record that does not match, or in a code case. If we know about them from the start they are part of the offer.

Texas requires a seller's disclosure notice for most residential resales, and it asks about additions and improvements made without permits. Selling as-is does not remove the duty to disclose what you actually know. Being straightforward here is both the legally safer path and the faster one.

Frequently asked questions

Do I have to close out an open permit before selling?

No. We buy with permits open and with work that was never permitted at all.

Will you buy a house with an unpermitted garage conversion?

Yes. It does not have to be legalised or reversed before closing.

Does unpermitted work have to be disclosed?

Texas requires a seller's disclosure notice for most residential resales, and it asks about improvements made without permits. An as-is sale does not remove the duty to disclose what you know.

The square footage on the county record is wrong. Is that a problem?

Not for us. It is a common consequence of unpermitted additions and it is part of what we assess.

What if there is also a code case?

Send the case number. Recorded municipal liens are paid from the closing proceeds.

This page is general information about selling property in Texas, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Texas professional about yours.