If you own a house in Panama City, Florida (or nearby Panama City Beach or unincorporated Bay County) and you’re staring down code violations, open/expired permits, HOA/condo balances, or other liens, you can sell often without paying everything upfront. In a properly structured cash sale, the title company will verify what’s owed and pay valid liens from your sale proceeds at closing, so you walk away clean and the buyer gets clear title. That’s the big idea we’ll unpack here.
Below you’ll find exactly how violations become liens, how estoppel certificates work for HOAs/condos, how to handle open permits, and how a cash buyer plus a diligent title company can turn a messy situation into a done deal fast.
First, understand your jurisdiction (City vs. County vs. PCB)
“Panama City” is a patchwork: your address might be inside the City of Panama City, in unincorporated Bay County, or in the separate City of Panama City Beach (PCB). Code enforcement, permit portals, and fine schedules differ by jurisdiction—so step one is to confirm where your property actually sits and use the right resource:
- City of Panama City – Code Compliance (process, magistrate hearings, contact info).
- Bay County – Code Enforcement (outside city limits).
- Panama City Beach – Code Enforcement & Permit Search (if you’re in PCB).
Pro tip: If you’re not sure, look up the parcel at the Bay County Property Appraiser and the Clerk of Court (for recorded documents and existing liens). Bay County Property Appraiser+1
How violations turn into liens (and why they can follow you)
In Panama City, the code process typically flows like this: inspection → notice → hearing → order to comply → fines if not cured. When violations aren’t resolved on time, a special magistrate may order fines and costs. If those aren’t paid within the deadline, the City may record a lien and the law even allows the lien to attach to other real or personal property owned by the violator. That’s one more reason to address these early.
Florida’s Code Enforcement Boards Act (Chapter 162) governs the bigger picture. It authorizes administrative fines, lets boards record orders that bind future owners, and sets a 20-year duration for code enforcement liens (unless an enforcement action is filed sooner). Also important: since 2021, anonymous complaints are restricted reporters must provide name and address (with limited exceptions).
What counts as a “municipal lien” beyond code tickets?
Besides code fines, a municipal lien search may uncover utility balances, stormwater or solid-waste assessments, nuisance abatement costs, and lot clearing or demolition charges not all of which show up in the county’s recorded records. That’s why title companies and closing attorneys routinely order municipal/unrecorded lien searches before closing.
Open or expired permits: the silent deal-killer
An open or expired building permit is not a lien, but it’s a cloud on title that can stall a sale. Open permits “run with the land”—so if you sell with one still open, the buyer inherits the mess. The fix varies by jurisdiction: inspections may be needed, a licensed contractor might have to re-permit or provide affidavits, and fees can apply. Start by checking the right portal:
- Panama City – Cloudpermit (e-permitting, status checks).
- Bay County – Permit Center & Permit Search links.
- Panama City Beach – Permit/Inspection Search.
Local practitioners note several closure paths from re-inspection to engineered letters depending on what was done, when, and by whom. The sooner you identify the permit and the required corrective steps, the faster you can close it.
HOA/Condo balances and estoppel certificates (what they are & why they matter)
If your home or condo sits in an HOA/COA, the association controls the ledger for assessments, late fees, violations, special assessments, and transfer charges. Before closing, the buyer’s side will request an estoppel certificate a standardized statement of everything owed and what will be due through a certain date. Florida law:
- HOA estoppels (F.S. 720.30851) – associations must deliver the estoppel within 10 business days; it’s effective for 30 days if emailed/hand-delivered (35 by mail). Fee caps apply (subject to periodic CPI adjustments by DBPR).
- Condo estoppels (F.S. 718.116) – similar framework; the statute spells out fee limits and batching rules for multiple units.
Florida Realtors also provides a clear, plain-English summary of timing and fee caps that title companies rely on daily.
Bottom line: your HOA/COA must provide the number; the title company plugs it into the closing, and pays it from your proceeds so you don’t have to wire it separately (unless the sale doesn’t net enough).
Construction (mechanic’s) liens under Florida’s Chapter 713
Separate from municipal charges, Florida’s Construction Lien Law (Chapter 713) lets contractors, subcontractors, and material suppliers record liens even if you paid the general contractor. That’s why title asks for lien releases from everyone who delivered labor or materials. If a Chapter 713 lien shows up on title, it must be addressed or insured around usually by payoff or negotiated release before closing.
So how does a cash sale “clear the deck”?
With a cash buyer, you skip lender overlays and appraisal conditions and move straight to title and closing. Here’s how title cleans things up:
- Title search & municipal lien search: Finds recorded liens (taxes, judgments, code orders, construction liens) and unrecorded municipal items (utilities, permit issues, code fines not yet recorded).
- Estoppels & payoffs: Title orders your mortgage payoff letter, HOA/condo estoppel, and any code payoff from the City/County. For Panama City cases, they’ll also check magistrate orders and outstanding fines.
- Closing disclosure: All verified amounts are listed on the seller side.
- Closing day: Title collects the buyer’s funds, pays valid liens from your proceeds, and disburses the remainder to you.
- After closing: The lienholders (including the City/County) post releases or satisfactions in the official records; your buyer receives marketable, insured title. (Tip: you can monitor recording activity on your name with the county’s free Property Fraud Alert.)
If your proceeds don’t cover everything, you can still sell—provided parties agree on discounted payoffs, payment plans, or a price adjustment that funds the shortages. Cash buyers are often flexible here because they aren’t bound by lender rules.
Real-world examples from Bay County sellers
Example 1: Grass, debris, and an abandoned shed (City of Panama City).
A seller inherited a rental with overgrowth, dumped furniture, and a leaning shed. The inspector issued notices; a hearing followed; fines started running. Title pulled the magistrate order and obtained a payoff. The cash buyer agreed to take the property as-is. At closing, the title company paid the code fines from proceeds, the City recorded the release, and the buyer handled cleanup post-closing.
Example 2: Open 2017 permit on an electrical panel (unincorporated Bay County).
The seller was surprised to learn an old permit never received a final. The Bay County Permit Center showed the record; a licensed electrician obtained a re-inspection and supplied an affidavit. The permit closed the week before closing and the sale proceeded.
Example 3: Condo with two years of unpaid assessments (PCB).
The association delivered an estoppel detailing regular assessments, late fees, and a special assessment. Title added the amount to the seller side of the closing disclosure and paid it from the seller’s proceeds. The buyer got a zero-balance letter and closed on time.
Your step-by-step playbook
- Confirm jurisdiction & status.
Check address jurisdiction and pull your record: Code Compliance, or Bay County as applicable. If you have a notice/hearing date, save every document. - Run a quick self-audit.
- Search official records (liens, judgments, satisfactions).
- Check permits (Cloudpermit for City; County/PCB portals for others).
- If in an HOA/condo, expect an estoppel and possible transfer/processing fees.
- Decide: fix now or clear at closing.
- Fix now if it’s straightforward (e.g., mow, remove debris, schedule inspections).
- Clear at closing if funds are tight; a cash buyer + title company can pay from your proceeds the key is to disclose and price accordingly.
- Price and negotiate strategically.
Buyers pay for certainty. Disclosing violations/permits early and presenting a payoff plan (with quotes or official payoffs) keeps deals calm and on track. - Pick the right buyer.
Cash buyers can close faster, tolerate code/permit baggage, and won’t require lender sign-offs. That saves weeks. - Let title orchestrate the payoffs.
Cooperate with the closer’s requests: provide mortgage info, association contacts, code case numbers, and contractor details. Title will verify balances and schedule disbursements at closing.
Frequently asked questions
Can code enforcement liens stop my sale?
They don’t have to. They must be paid or resolved (or insured around) for the buyer to receive clear title. Title will gather the exact payoff from the City/County. Note that recorded orders can bind subsequent purchasers until cured.
What if the violation hasn’t become a lien yet?
Great fix it before hearing if you can. If not, the payoff can still be handled at closing so long as the buyer agrees and the numbers pencil out.
Do I have to clear open permits before closing?
Not necessarily, some buyers will close with an escrow or price credit to finish the work after closing. But many title companies will require a closure path identified with the building department.
How do HOA/condo balances get handled?
Via estoppel. The association issues the amount due; title pays it from your proceeds and obtains confirmation for the file. Turnaround is statutorily defined; rush fees and delinquency add-ons are capped.
What about contractor liens under Chapter 713?
If recorded, they’ll appear in the title search and must be released or paid. Title will also collect lien waivers/releases to prevent surprise claims.
Ready for the fastest, cleanest route?
If you’d rather sell as-is for cash, let our team do the heavy lifting we’ll coordinate with title to order the municipal lien search, estoppels, and payoffs so your violations, open permits, and balances are settled from closing proceeds. You walk away with certainty and a clean slate.
👉 Start here: Sell my house!
Quick legal note
This article is general information, not legal advice. For specific decisions (e.g., lien priority, homestead protections, or complex permit remediation), consult a Florida real estate attorney or your title agent. Still, the framework above identifies, disclose, and let title pay from proceeds in a cash sale is how thousands of Florida sellers clear the deck and move on.
About Panhandle Real Estate Investments
I’m Peyton Saluto, founder of Panhandle Real Estate Investments. For over seven years, I’ve helped homeowners across the Florida Panhandle find fair and stress-free ways to sell their homes—no repairs, no commissions, and no pressure. My goal is always to put people first and make a real difference in our communities by restoring distressed properties and rebuilding neighborhoods. If you’re thinking about selling, reach out for a no-obligation cash offer. I’d love the opportunity to help you find the best path forward.