Closings glossary

Open permit

A DOB permit filed for work that was never signed off. Closing it usually means a licensed professional filing for inspection or formally withdrawing the job.

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What is an open permit on a building?

Quick Answer

An open permit is a Department of Buildings permit that was pulled but never signed off. The City still treats the work as unfinished, the permit stays against the property after a sale regardless of who pulled it, and it commonly turns into a closing escrow or a delayed date.

The full definition

A DOB permit filed for work that was never signed off. Closing it usually means a licensed professional filing for inspection or formally withdrawing the job.

Which related terms should you know?

These are the terms that come up alongside open permit in the same file.

Violation (cited against the premises): An agency record that a condition at a property does not comply with a code or rule. It attaches to the premises and follows the property through a sale.
Certificate of Correction: The filing that certifies to a City agency that a cited condition has been corrected. Acceptance by the agency, not the repair itself, is what closes the violation in the record.
Escrow (at closing): Funds or documents held by a neutral party until stated conditions are satisfied. At a New York closing it usually means a holdback from proceeds under a written escrow agreement.
BIN (Building Identification Number): A seven-digit Department of Buildings number identifying one building. A single tax lot holding a main house and a rear structure carries a separate BIN for each of them.
Certificate of Occupancy (C of O): The Department of Buildings document that fixes a building's legal use and occupancy. Lenders and title companies read it to confirm the property can lawfully be used the way it is sold.

Where does open permit come up in a New York City closing?

A Queens seller's 2016 plumbing permit is still open, and the parties escrow $10,000 so the buyer can hire a plumber and obtain the sign-off.

What else should you read before closing?

Questions this raises

What happens if the title search finds a problem before closing?Schedule B-I requirements are the punch list, not a dead deal. How New York closings clear old liens, missing satisfactions and name hits before th...

Title issues

Open permitAn open DOB permit is work the City still shows as unfinished. It rarely kills a NYC deal outright, but it moves the date and it follows the buyer.

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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.