Austin Texas Demo Permit

[Ronnie McClain]

Hello everyone,

So to fill you in, I am working on getting a house that we would tear down and start new construction on.  We would like to get a demo permit search going before option period just so we can be sure there aren't any restrictions and move as quickly as possible if not, but the owner is very reluctant to sign this permit.  

We know the house is not a registered historic landmark or in a historical district, but it is over 40 years old which means it is required to go through historical review to determine if there is any historic significance that may prevent demo. 

In most peoples opinion I have spoken with (including one city worker that took a quick glance) they don't see any reason that an issue would pop up in this neighborhood on this specific property, as other builders have been tearing down and building new in the same area and the architecture of the home is nothing special. Other builders have also told the owner that they would not have an issue closing on the property without having the demo permit before because they've done work in the area and are not concerned. Yes, they would still need the permit in order to tear down once they close, but they are not requiring that information prior to close like we are. They close and then pull permit.

My question to you all is what is your experience with purchasing or selling a tear down property with or without a demo permit in hand? Has it caused issues for you? Are there ways to find out these restrictions without having to have the owner sign a demo permit?

Anything helps. Thanks ahead of time!

[Bryan Hancock]

Austin's Historic District is NOT to be trusted.  Anything requiring Historic review should be cleared prior to closing IMO.  We have had to hire lawyers and threaten to sue the city to get our files through Historic when they clearly weren't of historic value.  I would be very careful about closing without demolition permits.

You should also be careful to check on utilities. Austin is notorious for issuing plats without the utilities to the lot, which could mean you'd potentially buy lots that require utility infrastructure that far exceeds the cost of the lot. Other items like Watershed from magical (non-FEMA) floodplain maps are items which can cause problems.

My opinion is to call the seller's bluff and let them close with others if they're unwilling to allow you to get the boxes checked you need to check.  There are plenty of deals.  Sometimes the best deal you do is the one you DON'T do.  It is better to lose out on a few deals that may work out rather than lose a lot of money buying projects that are worthless to you.  If the project you're buying has some salvage value in the event you can't get permits perhaps the answer may change a bit, but I would err on the side of being safe and passing if you can't get what you want to make you feel comfortable with buying the lot.