Investor · Houston, TX · Member since 2017 · 31 posts · 2 votes
I’m working on getting a burned rental property demolished. The contractor that I was thinking about going with asked me to submit the demo permit. No other contractor has asked me to do that Is this typical? What am I missing here?
Alongside who pulls the permit, I'd compare exactly what each bid includes: foundation removal, hauling and disposal, utility disconnections, and final grading. Two demo prices can be hard to compare if one leaves part of that work for the owner. I'd ask for those exclusions in writing before choosing.
Ashley — This is a major red flag. In 99% of cases, the licensed contractor doing the physical work should be the one pulling the demolition permit.
When a contractor asks the property owner to pull a permit, it usually boils down to three common reasons:
Lack of Licensing or Insurance: They may not be properly registered, licensed, or insured with the city/municipality to pull demolition permits.
Avoiding Liability: Whoever pulls the permit is held legally and financially responsible by the city for code compliance, job-site safety, worker injuries, and environmental/utility disconnects.
Debt or Violations: The contractor might have active stop-work orders, unpaid city fees, or open permit violations under their company name that prevent them from pulling new permits.
Why This Matters Specifically in Houston / Texas:
Demolition permits—especially on a burned rental structure—require precise steps before the city approves the permit:
Sewer Plug & Utility Disconnects: In the City of Houston, a registered master plumber must cap/plug the sewer line and pass a city plumbing inspection before the demo permit is even granted.
Environmental/Asbestos Inspections: Burnt structures often require specialized environmental or asbestos oversight depending on the year built and city guidelines.
Future Building Permits: If the demo isn't finaled or inspected properly under your name, the city can place a hold on your site, blocking you from pulling future new-construction or rebuild permits.
What You Should Do:
Tell the contractor: "My insurance and legal team require that the primary contractor performing the work pulls all applicable permits."
If they push back or refuse, move on to another contractor. The few hundred dollars you might save upfront on a low bid isn't worth taking on full site liability or risking a city stop-work order.
📩 If you need help reviewing the scope or capital requirements for the rebuild stack once the site is cleared, feel free to send me a Direct Message! Best of luck with the project!
Depends on your contract with them.. Usually the demo permit comes with the asbestos testing/abatement, hence you may be required to get those documents and upload them anyways. Not a big deal.
I’m working on getting a burned rental property demolished. The contractor that I was thinking about going with asked me to submit the demo permit. No other contractor has asked me to do that Is this typical? What am I missing here?
@Ashley Hughes, I wouldn't automatically consider it a red flag, but I'd definitely ask the contractor why they're requesting that you pull the permit when the others haven't. I'd also check with the local permitting office before agreeing to anything. The important part is understanding who will be responsible for the permits, inspections, utility disconnections, and any issues that come up during demolition.
I'm a real estate attorney and investor based in Maryland, and I work with clients on property matters and contracts. I've seen how important it is to have clear agreements with contractors, especially when a project involves major work. It's much easier to address those responsibilities before signing than to deal with disagreements later.
I appreciate you asking this, @Ashley Hughes. It's a good question, especially with a fire damaged property. I'd want to understand the contractor's reasoning before making a decision. Happy to stay connected!
Alongside who pulls the permit, I'd compare exactly what each bid includes: foundation removal, hauling and disposal, utility disconnections, and final grading. Two demo prices can be hard to compare if one leaves part of that work for the owner. I'd ask for those exclusions in writing before choosing.