BIC TIP #1263: Can I See Your License, Please?

Excuse me, sir. Can I see your license, please? In this BIC TIP, Stephen Long tackles licenses and permits for repair work. Whether you are negotiating due diligence repairs or prepping a listing for market, the rule of thumb is simple: a license for sure, a permit preferred.

Big Systems Need Real Professionals

When repairs touch electrical, HVAC, plumbing, or structural components, they need to be done by a licensed professional. These are the systems that keep a house safe, and they are exactly where a buyer’s inspector will be looking hardest.

Uncle Bob and his toolbox may be handy, but “handy” is not a license. If the work involves one of those major systems, steer your clients toward someone properly licensed for that trade.

Permits: The Gold Standard

Ideally, that licensed work also comes with a permit. A permit adds a layer of documentation and, depending on the work, an inspection by the local jurisdiction. That paper trail gives a buyer real confidence that the work was done appropriately by the right people.

Licensed work with a permit is the cleanest story you can tell a buyer about a repair.

No Permit? Disclose Before Contract

Sometimes a permit simply was not pulled. If that is the case, Stephen’s point is clear: the work done without a permit needs to be disclosed prior to contract. Disclosing it up front keeps the seller from ending up in breach of contract later.

Hiding it or hoping nobody asks is not a strategy. Put it in writing, put it out early, and let the buyer make an informed decision. If you are unsure how to handle a specific situation, check with your broker-in-charge.

The Practical Takeaway

When repairs come up, ask the question every time: who is doing the work, and are they licensed for it? Then ask whether a permit is being pulled.

A license for sure, a permit preferred, and full disclosure when there is no permit. That combination builds buyer confidence and saves you from future complaints about subpar work that could come back to haunt everyone involved.