Investor Question: Dealing With City Liens From Unpermitted Additions

Orlando, Florida
Rehabbing & House Flipping
8moFollow

Investor Question: Dealing With City Liens From Unpermitted Additions

Mike Romano
Investor · FL · Member since 2022 · 69 posts · 21 votes

Has anyone here bought a property that had a city lien, where the lien was paid off at closing?

In my case, the lien is for unpermitted work—an addition on the back of the house. I’m getting the property at a great price, and the lien will be paid at closing, but I know the issue itself won’t just disappear. I’ll still need to address the unpermitted addition and bring it into compliance.

Has anyone dealt with something like this before? How did the city handle permits, inspections, or possible fines after closing? Any advice or experiences would be really appreciated.

1Reply
244 views

7 Replies

Jump to latestLatest
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    8mo

    @Mike Romano

    You should contact the city or submit a FOIA request to get information regarding outstanding fines. There may be fines unrelated to the lien.

    It depends on the extent of the non-permitted work. Was it an addition, remodeling or something else?

    I’ve been a building and zoning official for years.

    Each jurisdiction handles it a bit differently. There are ways to resolve it provided it can be brought up to code compliance.

    0Reply
  • Mike Romano
    OP
    Investor · FL · Member since 2022 · 69 posts · 21 votes
    8mo

    Thanks @Kenneth Garrett It’s an addition where they tried to add a full kitchen to the back of the house.

    0Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    8mo

    You’ll need to put some plans together detailing the construction.  They probably will require you to open some walls.  That will require drywall removal.  I would contact them and tell them you want to make it right and what steps do you need to take to achieve that.

    0Reply
  • Mike Romano
    OP
    Investor · FL · Member since 2022 · 69 posts · 21 votes
    8mo

    Thank you @Kenneth Garrett

    0Reply
  • Frank PyleBusiness Member
    Specialist · USA · Member since 2024 · 279 posts · 130 votes
    8mo

    Yes I have seen that a few times. Paying the lien at closing just clears the money owed but it does not cure the code issue so you are thinking about it the right way. Before you close I would call the local building department and ask what it takes to legalize an existing addition and whether there are any open code cases besides the lien. Usually it turns into an after the fact permit where they want plans or as built drawings and then inspections, and if they cannot verify framing electrical plumbing they may require selective demo so they can see what is behind the walls. The big risk items are setbacks zoning coverage and any structural work or foundation work that was done without engineering. I try to price it as if I might have to partially open it up or even remove it if it cannot be legalized, and I push for a credit or a seller holdback if the path is unclear. If you get a clear answer from the city on the exact steps and fees before closing the whole thing gets a lot less scary.

    [email protected]317-501-3467
    Frank Pyle at ExP Realty
    WebsiteView Page
    NEXA Lending- Investors Edge Concierge
    View Page
    0Reply
  • Mike Romano
    OP
    Investor · FL · Member since 2022 · 69 posts · 21 votes
    8mo

    Thank you @Frank Pyle

    0Reply
  • Leez Almeida
    Architect · Member since 2026 · 2 posts · 0 votes
    1mo

    I’d start by getting the complete permit and violation history for the property and confirming with the city exactly what triggered the lien. I’d also want to know whether the unpermitted addition can be retroactively permitted and what inspections or corrections would be required. Definitely worth getting everything clarified before putting more money into the property.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free