Many homeowners aren’t aware of their property’s permit history, and that can lead to unwelcome surprises during a sale. If there are missing details or unresolved permits, it can create delays or even affect your home’s value.
That’s where the Report of Residential Building Record (commonly called the “3R”) comes in. This report is a required part of the disclosure package when selling a home and provides key information like permits pulled and closed out, zoning, authorized use, construction dates and more.
One of the most important sections of the 3R is the permit history. It lists every permit issued for the property and shows whether the work was completed and officially signed off by city inspectors. It also notes any permits that are still open or have expired—a potential red flag that the work may never have been done or properly approved. This is especially important for work behind the walls like plumbing or electrical, where inspector sign-offs ensure everything meets building code and safety standards.
It’s not uncommon for sellers to assume past work was fully permitted and finalized, only to discover discrepancies in the 3R. While contractors are generally responsible for closing out permits, sometimes final signoffs get lost in the scrum. Those kind of oversights can become a sticking point during your sale.
Take a kitchen remodel, for example. If permits were never fully processed or signed off by the Department of Building Inspection (DBI), buyers might worry about safety or whether the work was up to code. Even worse, unresolved structural work such as foundation repairs can lower your home’s value or derail a transaction. Misclassified occupancy (say, your single-family home is recorded as a two-unit building) is another issue that can throw a wrench in the process.
To stay ahead of these issues, it’s smart to have your agent request the 3R as soon as you’ve signed the listing paperwork. In the meantime, your agent can also pull your property’s permit history online to start reviewing. Tackling any permit-related issues early can help ensure a smoother sale. And remember — keeping records such as inspector-signed job cards for all major improvements can save you time, stress and money down the line.