Caught off guard by an “open permit” days before closing? You’re not alone. In Durham, a lingering permit from a past renovation can slow funding, add title exceptions, or even delay move-in. The good news is you can spot and solve these issues early. In this guide, you’ll learn what a permit closeout is, how Durham’s process works today, how lenders and title companies approach open permits, and the steps to clear problems before you list or go under contract. Let’s dive in.
Permit closeout basics
A permit closeout is the final sign-off from the local inspector that the permitted work meets code and the permit’s terms. For new homes or major changes, the city or county may also issue a certificate of compliance or occupancy after final inspections. North Carolina law ties legal occupancy to the authority’s final approval, which is why this sign-off matters at closing (state statutes on occupancy and compliance).
An open permit signals that work may not have been inspected or fully completed to code. That presents risk for both parties and can trigger extra requirements from the lender or title company. Closing those loops early helps you avoid last-minute surprises.
Why closeouts matter when you sell
Lenders and title companies often require final approvals for material building work before they will fund or insure the transaction. If a permit stays open, the file can include title exceptions or conditions that hold up closing. Some lenders allow an escrow holdback when appropriate, while others require full cure before funding. Underwriting varies by program, but final municipal approval is usually the cleanest path (how lenders and title approach open permits).
For new construction or major alterations, occupying without the final approval can violate state rules and lead to fines or orders to vacate. Durham and the State Building Code give inspectors authority to require final inspections before occupancy (NC code compliance rules).
How Durham’s process works now
Durham’s inspections function is now the City-County Building & Safety Department, following a 2025 reorganization. You will use the City’s Development Services pages and the Land Development Office (LDO) portal to apply for permits, schedule inspections, and check status. The department directs users to schedule inspections through the LDO portal, and many actions require the permit applicant’s credentials. Phone scheduling has been phased out in favor of the portal, and next-business-day inspection scheduling is common when criteria are met (Durham Building & Safety update and LDO guidance).
Durham also updated its temporary power policy. Residential temporary power is no longer issued apart from an active building permit, and release to the utility follows a passed electrical final on the electrical permit. This can affect timelines and coordination with inspectors and your contractor (Important local updates, scheduling, and policy changes).
If you need older records, the City and County maintain permit and inspection files. Start with the portal search, then use a public-records request if necessary to obtain historical data (how to request records from the City).
For larger projects with site work, Durham County Engineering and Stormwater may have separate erosion-control permits and release steps. Make sure those are closed out as well if they apply to your property (County erosion-control overview and releases).
How open permits show up during a sale
Open permits are often flagged in the title search, municipal violation letters, or closing packages. A buyer’s lender, appraiser, or home inspector may also uncover unclosed work during due diligence. When this happens, expect the lender or title company to ask for municipal sign-off or for an approved workaround such as an escrow holdback when allowed (lender and title responses explained).
Your options to resolve an open permit
- Close it before closing. Work with your contractor to schedule and pass all required inspections through Durham’s LDO portal, then obtain the final sign-off or certificate. This is the cleanest option for everyone involved (Durham LDO and inspection scheduling).
- Reactivate or re-permit if expired. Many jurisdictions allow reactivation or require a new permit depending on age and scope. Processes and fees vary, so ask Durham Building & Safety for property-specific guidance. Other NC jurisdictions outline similar reactivation requirements and potential fees as examples of what to expect (example of reactivation policies).
- Use an escrow holdback when allowed. If time is tight, some lenders permit closing with funds held in escrow to complete the work after closing. Expect contractor estimates, clear scopes, and proof of municipal clearance before funds are released (how escrow holdbacks typically work).
Durham checklist for sellers and buyers
Before you list (seller)
- Search your address in Durham’s LDO portal and download permit history. If the results are unclear, request records through the City or visit the Building & Safety counter (where to start with LDO and records, City records request info).
- Disclose known permits and start closeouts now. Contact the contractor, gather permit numbers, and schedule required inspections through the portal.
- If work was done without permits, contact Building & Safety right away to discuss corrective steps. Jurisdictions may require retroactive permits, inspections, and fees depending on the situation (example guidance on unpermitted work and fees).
After going under contract
- Share permit numbers and inspection records with the buyer, lender, and title company.
- Schedule final inspections through the LDO portal. Durham commonly offers next-business-day inspection scheduling when requirements are met (scheduling details and portal use).
- If plans need updates or re-review, consider whether Enhanced Plan Review could speed up plan review components for qualifying projects. Durham charges a scheduling fee for this option, for example a $600 scheduling fee for Enhanced Review (Enhanced Plan Review overview and fees).
If you cannot close permits before settlement
- Ask the lender and title company for written guidance. They may require the seller to cure, approve an escrow holdback, or ask for specific municipal documentation to clear title exceptions (typical lender and title options).
- If an escrow is approved, document the scope, contractor, budget, timeline, and how funds will be released after Durham’s final approval.
Timing and expectations in Durham
- Small trade finals, like an electrical or plumbing final, often resolve in days to a couple of weeks if work is ready and corrections are minimal. The LDO portal supports next-business-day scheduling when criteria are met, and final paperwork may follow shortly depending on workload (Durham inspection scheduling info).
- Projects that need plan review, rework, or multiple trade finals can take several weeks to months. Enhanced Plan Review is available for qualifying submissions for an added fee, for example a $600 scheduling fee (Enhanced Plan Review details).
- If a permit is old or records are incomplete, expect an on-site visit and possible reinspection list before closeout.
Avoid last-minute surprises
The simplest way to protect your closing is to search for permits early, start the closeout process at the time of listing, and keep your lender and title company in the loop. Use Durham’s LDO portal and the City-County Building & Safety team as your official sources, and plan for extra time if you need reactivation or additional reviews.
If you want help coordinating the moving parts while you focus on your next chapter, reach out to Tonya Wicker Hunt for local guidance from listing through close.
FAQs
Can you close on a Durham home with open permits?
- Sometimes. Lender underwriting and the title company decide whether to allow closing with conditions like an escrow holdback, or to require final municipal approval before funding. The least risky option is to secure Durham’s final sign-off in advance (how lenders and title treat open permits).
Who is allowed to close a permit in Durham?
- The permit holder is typically responsible for requesting inspections and achieving final sign-off. Some actions in Durham’s LDO portal require the original applicant’s credentials, so contact Building & Safety for guidance if roles have changed (Durham LDO and scheduling guidance).
What if a permit has expired in Durham?
- You may be able to reactivate and inspect, or you may need a new permit depending on age and scope. Policies vary by jurisdiction. Ask Durham Building & Safety for property-specific steps, and expect possible fees or reinspections (example reactivation guidance from another NC jurisdiction).
Is it legal to move in without a final approval?
- For new builds or major alterations, occupancy is tied to final approval or a certificate of occupancy under North Carolina law. Moving in without final approval can trigger enforcement or penalties (NC occupancy and compliance rules).
Do site or erosion-control permits affect closing too?
- Yes, for projects with land-disturbing activity. Durham County Engineering and Stormwater may require separate closeouts and releases for erosion-control permits, which should be satisfied before performance security is released (County erosion-control releases).
