A recent study conducted by the Florida Office of Insurance Regulation (OIR) has shed light on a growing issue for homeowners across the state: permit denials tied to lookback periods. According to the findings, 14.5% of homeowners have faced denial when attempting to pull permits for renovations or repairs due to previous, undocumented changes to their property.

RELATED: Florida Lawmaker Seeks Change of FEMA 50% Rule

The study highlights a lack of transparency in the homebuying process as a significant contributing factor. Homebuyers are often unaware that earlier renovations, completed without proper permits or inspections, can trigger complications years later when new work is planned. The “lookback period,” a retrospective review of a property’s permitting history, has left many homeowners blindsided and unable to move forward with their intended projects.

The Lookback Period Explained

A lookback period allows local authorities to review a property’s history of renovations and permits. If unpermitted work is discovered during this process, homeowners may be required to address prior violations or discrepancies before any new permits can be approved. This often entails costly retroactive permitting, inspections, or even demolition of non-compliant additions.

RELATED: FEMA 50% Rule Already Catching Some Homeowners Completely Off Guard

The OIR report notes that the impact of this policy is exacerbated by the fact that information about unpermitted work is rarely disclosed during home sales. Sellers may not be aware of or disclose unpermitted renovations, leaving buyers to inherit the problem unknowingly.

Homeowners Left Frustrated

Homeowners say the lack of disclosure is a major issue. For instance, someone could have bought a house three years ago not knowing the previous owner added a sunroom without permits. Subsequently, if the new owners wanted to renovate the kitchen, the city would deny their permit until they dealt with the sunroom. 

RELATED: Madeira Beach Mayor Fears FEMA’s 50% Rule May Force Residents Out

According to the study, many homeowners only learn about lookback issues after investing in project plans or hiring contractors, compounding the financial burden.

Recommendations for Change

The OIR report emphasizes the need for better transparency in real estate transactions. It suggests that a property’s permitting history, including any unresolved issues, should be disclosed to buyers during the home inspection or closing process. The report also recommends public awareness campaigns to educate homeowners about the risks and responsibilities tied to unpermitted work.

RELATED: Pinellas County Introduces Pre-Storm Building Value Reconsideration as an Alternative to Private Property Appraisals for FEMA Recovery

“There’s a clear gap in information,” the study states. “Homebuyers should not be left in the dark about potential permitting challenges stemming from the actions of previous owners.”

What Homeowners Can Do

To avoid surprises, experts suggest prospective buyers request a property’s full permitting history from local authorities before purchasing. Current homeowners planning renovations should verify that all past work on their property was properly documented and permitted to minimize risks.

RELATED: How Many Stop Work Orders Does FEMA Issue Against Properties Being Rebuilt After a Storm?

As discussions around transparency and permitting reform continue, the study underscores the importance of addressing these challenges to protect Florida’s homeowners and their investments.

Follow us on Facebook, Instagram, Threads, Google, & X

(Image created with DALL-E AI)