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Construction Permit

Understand construction permits in Canadian real estate — what they are, when they’re needed, and their role in safe, legal building.

Construction Permit

July 27, 2025


What is a Construction Permit?

A construction permit is official authorization from a local government allowing the start of construction or major renovations in compliance with building codes and zoning laws.

Why Construction Permits Matter in Real Estate

In Canadian real estate, construction permits ensure that new builds and alterations meet safety, structural, and planning requirements.



Key points:
  • Required before starting most construction work
  • Ensures compliance with building codes and zoning
  • Helps protect property owners from legal and safety issues



Understanding construction permits helps owners, builders, and developers manage compliance and avoid costly penalties.

Example of a Construction Permit in Action

The builder obtained a construction permit before starting the foundation work on the new duplex.

Key Takeaways

  • Required for most construction or major renovations
  • Ensures code and zoning compliance
  • Protects safety and legal standing
  • Must be obtained before work starts
  • Helps prevent penalties or work stoppages

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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