Unpermitted Work
Explore unpermitted work in Canadian real estate — what it means, its risks, and why due diligence is critical for buyers and sellers.
June 27, 2025
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
- Property Disclosure Statement
- Building Permit
- Permit Compliance
- Home Inspection
- Material Defect

Canada residential unit sales by month, actual, 2019 and 2024-2026. Data through June 2026. Source:
Canada residential sales-to-new-listings ratio, actual, January 2025 to June 2026. Source:
Canada residential months of inventory, actual, January 2025 to June 2026. Source: Source:
Year-over-year change in residential average sale price for Canada, Ontario, British Columbia and Alberta, January 2022 to June 2026. Average price is shown here as a regional mix measure, not a substitute for HPI or local comparable sales. Source:
Year-over-year change in residential unit sales for Canada, Ontario, British Columbia and Alberta, January 2024 to June 2026. Source: 







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15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)
Renderings of the tower proposed for 15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)

Goldberg Group 
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Rendering of 525 Eglinton Avenue East/Wallman Architects

The Mayfair West site and its surrounding context. (Grosvenor, Arcadis, Hariri Pontarini Architects)
Renderings of Mayfair West. (Grosvenor, Arcadis, Hariri Pontarini Architects)