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A written governmental permission for the construction of a new building or other improvement, the demolition or substantial repair of an existing structure, or the installation of factory-built housing. The proposed construction must conform to local zoning and building codes and usually must be inspected and approved upon completion. In most cases, a building permit must be obtained before the start of a project, which provides a convenient way for local authorities to monitor compliance with the zoning code.

A prudent developer should include in the purchase agreement for a proposed development site not only a condition that the developer obtain a building permit but that it is obtained by a stipulated deadline. Otherwise, the developer could unreasonably delay seeking the permit while keeping the seller’s property off the market. 

Any owner contemplating an addition and/or change to property should first check with the appropriate county or municipal building department to avoid any building code violations, which will generally render a seller’s title unmarketable. Failure to disclose such violations may constitute a material misrepresentation, entitling the buyer to rescind the transaction and obtain the return of his or her money.