Yes, in standard residential practice it is the contractor’s responsibility to pull permits, and a reputable licensed contractor will do so as a routine part of the job. The important caveat is that the property owner carries the ultimate legal responsibility to make sure a permit exists before work begins, so the question of who actually files the paperwork needs to be answered in your written contract rather than left to assumption.
Why the Contractor Is the Right Party to Pull It
Contractors handle permits because they are built for the task. They know what the application requires, which drawings to submit, and how to describe the scope of work in terms the building department expects. A contractor who has worked in your area before has likely dealt with the same plan reviewers and inspectors, which means fewer rounds of revision and faster approvals.
This arrangement is standard across the industry. The American Institute of Architects’ standard residential contract, the AIA A105, explicitly assigns permit responsibility to the contractor, requiring them to obtain and pay for the building permit along with any other governmental fees, licenses, and inspections needed to complete the work. If your contract uses AIA documents or similar templates, that delegation is already built in.
A contractor who resists pulling a permit deserves skepticism. The most common reasons are that they lack a valid license, their insurance has lapsed, or they know their work will not survive inspection. Any of those should end the conversation. Reputable contractors treat the permit as proof that they stand behind their work, and they want their name on it.
What Changes If You Pull the Permit Yourself
Who holds the permit controls who bears the liability. When the contractor pulls it in their name, they are the party legally responsible for making sure every phase of work meets code. They schedule inspections, respond to correction notices, and fix anything that fails. If a framing inspection reveals undersized joists, that is the contractor’s problem and the contractor’s cost.
The calculus reverses if you pull what is known as an owner-builder permit. By signing that application, you are telling the building department that you are acting as your own general contractor. Every obligation that would have been the contractor’s now belongs to you: code violations, failed inspections, correction orders, and delays caused by re-inspections. You also inherit liability for jobsite safety. If a worker is injured on your property and the subcontractor you hired does not carry workers’ compensation insurance, you could be personally liable for medical expenses and lost wages.
There is another consequence homeowners rarely think about. Several states operate contractor recovery funds designed to compensate homeowners who lose money to licensed contractors who abandon work or perform it badly. These funds typically require that the contractor held the permit. If you pulled the permit yourself, you declared yourself the responsible party, and the fund has no contractor to hold accountable. Pulling your own permit to save a few hundred dollars can forfeit thousands in potential recovery.
Put the Responsibility in Writing
Do not assume permit responsibility is understood. Get it in writing. The contract should state plainly that the contractor will obtain and pay for all building permits, governmental fees, and inspections required for the project. That single sentence eliminates ambiguity and gives you legal recourse if the contractor starts work without a permit or expects you to handle it.
A clause as simple as “Contractor shall obtain and pay for all permits, licenses, and inspections necessary to complete the work” creates an enforceable obligation. If the contract your contractor hands you is silent on permits, add this language before signing. If they refuse, find a different contractor.
One scope note worth mentioning here: not every small project needs a permit. Painting, flooring, cabinet swaps, and faucet replacements are generally exempt, while structural changes, additions, electrical and plumbing beyond minor repairs, HVAC installation, and most roof tear-offs typically require one. Thresholds vary by jurisdiction, so a five-minute call to your local building department settles the question for your specific project. Your contract clause should cover “all permits necessary,” which handles the uncertainty without forcing you to list projects item by item.
What Happens If No One Pulls the Permit
Working without a required permit is not a gray area. Building departments treat it as a code violation, and the consequences escalate quickly.
The first thing that happens when an inspector discovers unpermitted work is a stop-work order. All construction halts immediately. Every day the project sits idle costs you money in contractor delays, extended rental periods if you are living elsewhere, and a timeline that keeps slipping.
Getting a retroactive permit after being caught is possible but expensive. Many municipalities charge double the normal permit fee for a first offense and triple for repeat violations. In certain cities, the civil penalty for unpermitted residential work can reach six times the normal permit fee, with higher multipliers for commercial properties. These penalties must be paid before the building department will even process the application.
If the unpermitted work cannot be brought up to code, the building department can order you to tear it out, partially or completely. Demolishing a finished bathroom addition because the framing does not meet structural requirements is an extreme outcome, but it happens. The code does not care how much you spent; it cares whether the work is safe.
In some cases an inspector can verify compliance by examining the finished work. In others, particularly where critical elements are hidden behind walls or under floors, the inspector may require you to open up finished surfaces so they can see the framing, wiring, or plumbing. That means tearing out drywall and putting it back, at your expense.
Insurance and Resale Consequences
The fallout from unpermitted work reaches well beyond the building department.
Insurance Claims
Homeowners insurance policies commonly exclude coverage for damage resulting from work that was not permitted or did not comply with building codes. If an unpermitted bathroom addition develops a plumbing leak that damages the floor below, your insurer can deny the claim on the grounds that the work was never inspected or approved. Even when the unpermitted work was not the direct cause of damage, its presence can give the insurer grounds to dispute coverage, raise your premium, or cancel the policy.
Selling the Home
Unpermitted work complicates a sale at almost every stage. In most states, sellers are legally required to disclose any known unpermitted work to buyers, even if a previous owner did it. Failing to disclose can lead to a lawsuit after closing, and buyers who discover undisclosed unpermitted additions have successfully sued sellers for the cost of bringing the work into compliance.
Appraisals create another problem. When a lender orders an appraisal and the appraiser identifies an addition that lacks the required permit, Fannie Mae’s guidelines require the appraiser to comment on the quality and appearance of the work and assess its impact on the property’s market value. Unpermitted square footage often cannot be counted toward the home’s finished living area, which can reduce the appraised value enough to kill a deal or force a price reduction.
Open permits, where a permit was pulled but never closed out with a final inspection, create their own headaches. An open permit does not show up on a standard title search, so buyers may not discover it until late in the process. Once they do, most will demand that the seller resolve it before closing.
Closing the Permit Out Is Part of the Job
Pulling the permit is only the beginning. A permit is not complete until the work passes a final inspection and the building department closes it out. The final inspection verifies that the completed work matches the approved plans and meets code. For larger projects like additions or new construction, passing the final inspection is a prerequisite for obtaining a certificate of occupancy.
If your contractor pulled the permit, they are responsible for scheduling and passing the final inspection. Make your final payment contingent on this step. Withholding a portion of the contract price, often called retainage, until the permit is closed gives the contractor a financial incentive to follow through. Many contractors handle closeout without prompting, but some move on to the next job and leave the permit hanging. A simple clause in your contract tying final payment to permit closeout prevents that.
How to Verify the Permit Was Actually Pulled
Do not take your contractor’s word for it. Verifying a permit takes minutes. Contact your local municipal or county building department by phone and give them your property address. They can tell you whether an active permit exists, what scope of work it covers, and who pulled it.
Many building departments now offer online portals where you can search by property address, permit number, or contractor name. When you find the permit, confirm three things: the scope of work matches your project, the permit status shows as issued or active rather than expired or closed, and the contractor listed is the one you actually hired. If the permit covers “kitchen remodel” but your project includes a bathroom addition, the coverage is incomplete and additional permits may be needed.
Check permit status periodically throughout the project, not just at the start. A permit can expire if work does not progress within a certain timeframe, and some contractors let this happen without telling you. Catching an expired permit early is far simpler than dealing with one after the work is done.