Why Failing to Sign Off Your NYC Construction Permits Can Cost You Thousands

[Michael Genari]

If you own any property in New York City—whether it’s a condo, coop multi family, or commercial building—there is one detail that is too often overlooked: signing off your NYC Department of Buildings (DOB) work permits.

As an NYC permit expediter who works closely with property owners, investors and developers throughout the city, I see this issue more often than you’d expect. A surprising number of property owners complete major renovations, construction projects, or upgrades without ever properly closing out their construction permits with the DOB. While this might not seem urgent at first, it can become a major problem when you decide to refinance, sell, or transfer ownership of your NYC property.

Many clients only realize their NYC construction permits were never signed off when they are in contract to sell their property. Suddenly, their closing is delayed. Buyers—especially in today’s fast-paced real estate market—are quick to spot these open permits and use them as leverage, demanding steep discounts to cover the risk and effort they’ll need to put in to resolve the issue. Sometimes, this results in deals falling apart altogether.

In other cases, I meet property owners who are refinancing their NYC apartment or commercial space, only to discover that the lender won’t proceed because of outstanding permits. Banks and lending institutions often flag open DOB permits as a risk, especially in New York City where construction compliance is closely monitored. This results in weeks, sometimes months, of scrambling to resolve an issue that could have been avoided with proper permit management and timely sign-offs.

Another all-too-common scenario involves older projects. Many owners contact me after discovering that the architect or engineer who filed their NYC DOB applications has retired, moved, or passed away. This complicates matters further, as the professional who originally filed the application is no longer available to sign off on the final inspection or submit the necessary close-out paperwork. Now, the property owner is faced with additional expenses, hiring a new architect or engineer to take over the project, re-review the work, and coordinate final inspections and sign-offs with the DOB.

It is very important to understand that open permits are not necessarily the fault of the property owner, contractor, architect, engineer, or even the NYC permit expediter. Once the NYC construction permit is issued, and the contractor mobilizes on-site, the architect or engineer (the applicant of record) typically steps back until the contractor or owner signals that inspections are needed. Similarly, the expediter’s role pauses during the construction phase, as they are not involved in the day-to-day building process. The expediter only re-engages once requested to coordinate DOB inspections and file the necessary documentation. In many cases, no one is actively monitoring the permit status because the work is still ongoing or delayed. It is also common for projects to experience lags—where a permit may be issued, but construction doesn’t start for several months due to design decisions, appliance selections, or other logistical hurdles. This often results in open permits lingering unnoticed. As the project winds down, it becomes the property owner’s responsibility to step in and ask the contractor, “Is the work truly complete?” Once confirmed, the owner can notify their architect or engineer to perform final inspections. At that stage, the NYC permit expediter works alongside the applicant to prepare the necessary close-out filings and secure DOB sign-off.

This is why engaging an experienced NYC expediting firm early in the process is crucial. NYC’s construction and permitting process is unique and highly regulated. Open permits can create title issues, violate lender requirements, or trigger DOB audits. Whether you're renovating a condo in Manhattan, upgrading a brownstone in Brooklyn, or fitting out a commercial space in Queens, proper permit closure is not optional—it is essential to protecting your investment and ensuring smooth transactions.

NYC construction permits are not just about compliance; they are about protecting property value and avoiding unnecessary costs. When selling or refinancing your a New York City property, you want a clean file. Open permits signal incomplete work, missing inspections, potential safety issues, or unresolved code compliance—all of which can scare off buyers or lenders.

The next time you complete a renovation or construction project in NYC, make sure your DOB work permit is properly signed off. Avoid the common pitfall that has cost many property owners time, money, and deals.

If you are in the middle of a sale, refinancing, or planning a future project, it’s always smart to work with an NYC permit expediter who understands the ins and outs of DOB sign-offs, construction permits, and NYC’s complex Department of Buildings requirements. 

NYC property owners—from small apartment buildings to large commercial developments—benefit from staying ahead of DOB requirements. Whether you own a co-op, condo, multi-family home, or commercial property, closing out your NYC construction permits promptly can be the difference between a smooth transaction and a costly headache.