Unpermitted Work

Explore unpermitted work in Canadian real estate — what it means, its risks, and why due diligence is critical for buyers and sellers.

Unpermitted Work



What is Unpermitted Work?

Unpermitted work refers to construction or renovations done without obtaining the necessary approvals or permits from the local municipality.

Why Unpermitted Work Matters in Real Estate

In Canadian real estate, unpermitted work can create legal, safety, and financial risks for both buyers and sellers.



Examples include:
  • Basement finishing without permits
  • Structural changes without approval
  • Unauthorized decks or additions



Consequences may include fines, mandatory removal, or difficulty obtaining insurance and financing.



Understanding unpermitted work helps buyers conduct due diligence and negotiate remedies, and helps sellers address potential liabilities.

Example of Unpermitted Work in Action

The buyer discovered unpermitted work in the attic renovation, leading to a reduced offer to cover permitting and compliance costs.

Key Takeaways

  • Work done without required municipal permits
  • Poses legal and safety risks
  • Can delay or complicate sales
  • May result in fines or removal orders
  • Should be disclosed in property transactions

Related Terms

Additional Terms

Budgeting

Budgeting in real estate refers to the process of forecasting and managing income and expenses associated with owning, operating, or developing a property.. more

Tenant Improvements

Tenant improvements refer to custom modifications or build-outs made to a leased space to suit the tenant’s operational needs, often negotiated as. more

Highest and Best Use

Highest and best use refers to the reasonably probable use of a property that results in the highest value, provided it is legally permissible,. more

Gross Lease

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property. more

Brownfield

A brownfield is a property that was previously used for industrial or commercial purposes and is now vacant or underused, often requiring. more

Record of Site Condition (RSC)

A Record of Site Condition (RSC) is a formal document filed with a provincial environmental authority certifying that a property meets required. more

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