Title company responsibility? (agent, condo, construction, property)

[old_cold]

Friend has a closing date but buyers title company says there are open permits.
She just bought the house about a year ago and used a different title company.
Shouldn't they have discovered this?

Second question...should her real estate agent , as part of her service, check into this?
She told my friend to do it and she has no idea how to go about it.

[bbronston]

Our county (Manatee) has a website where she can check for open permits. My understanding is that an open permit isn't really a cloud on the title (i.e. it doesn't prevent a seller from providing a "clear" title) but it does run with the property. I'm basing that on a transaction I had once for a condo where the owner literally changed the roof design (with the condo association's permission) but never closed out the permit. I pushed my buyer to NOT go through with it until it was resolved but she decided to go ahead anyway and there was no problem with transferring the property.

Some home inspectors check for open permits, some title companies check, some agents check. I don't think there is a standard of any sort, though, and her contract to purchase has, no doubt, a section that discusses open permits and how to handle them.

[Silverfall]

Title companies worry about open permits because of construction liens that might still be in play for unpaid work. Title companies have different policies for risk management. It sounds like the new title company might require them to be closed, but if they are older it might be past the point where the other title company was worried about a construction lien.

Yes, most agents would generally make a few calls and help their clients navigate what they need to do.

[Slytrix]

Originally Posted by Silverfall

Title companies worry about open permits because of construction liens that might still be in play for unpaid work. Title companies have different policies for risk management. It sounds like the new title company might require them to be closed, but if they are older it might be past the point where the other title company was worried about a construction lien.

Yes, most agents would generally make a few calls and help their clients navigate what they need to do.

Great post.

[old_cold]

Thanks for letting me know it can be looked up online.
Did so and found the two showing as never inspected ( not closed).
One for the roof (1999) and pool cage (2007)

[Silverfall]

Originally Posted by old_cold

Thanks for letting me know it can be looked up online.
Did so and found the two showing as never inspected ( not closed).
One for the roof (1999) and pool cage (2007)

This is why the other title company wasn't worried about them. They are old.

[old_cold]

Originally Posted by Silverfall

This is why the other title company wasn't worried about them. They are old.

Yes. Now to convince the agent and her buyer.
The roof hardly matters since it's already been accepted that it needs replacement.