Many homeowners aren’t aware of their property’s current permit history, and this can cause complications in a sale if there are any unexpected details or omissions.
The Report of Residential Building Record (3R), or building permit history, is a mandatory report sellers provide as part of the disclosure package in a sale. This report includes essential information such as authorized occupancy or use, zoning, and construction dates.
Most importantly, the 3R lists all permits issued for the property and indicates whether each permit has been completed, meaning it was signed off and cleared by city inspectors. It also shows if permits are issued or expired, which could imply that the work may not have been done. Inspectors typically sign off on work completed behind the walls, like electrical or plumbing, ensuring it meets building and safety codes.
Sellers can be caught off guard when they assume that permits for past work were properly signed off, only to find discrepancies in the 3R. Contractors are usually responsible for closing out permits, but this can occasionally slip through the cracks.
This oversight can jeopardize your sale. For instance, if the permits for a major kitchen remodel you completed years ago weren’t fully processed by the Department of Building Inspection (DBI), buyers might raise concerns about safety and compliance with building codes. Such surprises can negatively impact your property’s value, especially if there are unresolved structural issues listed in the 3R, like foundation repairs. Additionally, an incorrect authorized occupancy—such as your single-family home being recorded as a two-unit building—can create complications. (One common issue is incomplete re-roofing work, so it’s essential to keep signed job cards and receipts when such projects are completed.)
Have your agent order the 3R soon after signing the listing paperwork to avoid these pitfalls. While waiting for the report, your agent can also access and review your permit history online. Addressing any permit-related issues before going on the market is a wise strategy. Additionally, saving all signed job cards and relevant paperwork for major improvements will be invaluable if you need to resolve any outstanding permits with DBI.