Legal Question in Real Estate Law in Florida

Open permit on property, money being held

Hi, I really need an answer here...we sold out home in Florida 7 months ago, and the title company is holding $5000 of our money due to an open permit that was discovered only at our closing. When we purchased out home 4 years ago, nothing was said about any open permit from our title company. Now that we have sold the house, No one is taking the blame for this. Both our title company and the buyers title company said its not their fault, they made me call the pool company that opened the permit back in 1993. (the permit is under their name). The pool company told me its not their fault, they told me to contact the electrician that worked under their license who opened the permit. We tried that, he is out of business. I have $5000 of my money being held up and I dont know where else to turn on this, every way I go is a DEAD end. Thanks for your help!


Asked on 2/28/08, 12:31 pm

1 Answer from Attorneys
Scott R. Jay Law Offices of Scott R. Jay

Re: Open permit on property, money being held

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

This is a common problem in Florida which allows title companies that are not affiliated with an attorney's office to conduct closings. A good real estate attorney would have caught this when you purchased and the Seller would have been responsible. At this point, you basically have two options.

First, you can hire an attorney who can review the file and see if liability can be placed on anybody for failure to properly do their job. The problem you have is that a title company generally excepts any open permits from the title policy and thus is not responsible nor can a claim be filed against the policy. If a lien search was conducted, the company who performed the search may be responsible. Statutes of limitations may also be an issue based on the length of time since the original purchase.

Second, a qualified real estate attorney can help you reopen the existing permit and then close it out. You may have to hire a qualified electrician to do this task.

My office has encountered this numerous times and has had to clear these kinds of problems for client prior to selling or purchasing a property. It is not easy, but it can be done, and it can get expensive.

Scott R. Jay, Esq.

Read more
Answered on 2/28/08, 2:46 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Florida