Verified October 18, 2026 against City of Toronto, City of Brampton, City of Mississauga and Electrical Safety Authority sources.
The short answer: you can buy a house with unpermitted renovations, but once you own it, the permit problem is yours. The city deals with the current owner, not the person who did the work. The fix is usually to apply for a permit for the work that is already done, which in Toronto and Brampton adds a fee of 50% of the permit fee, and may mean opening walls or hiring an engineer to show the work meets the Building Code.
The best time to deal with it is before you firm up the deal. This guide covers what the risks are, the ways to fix unpermitted work after you buy, what the city fees look like, and what to ask your lawyer to put in your offer.
What counts as an unpermitted renovation
An unpermitted renovation is work that needed a building permit and was done without one. That is narrower than it sounds. Plenty of work does not need a permit at all: new flooring, kitchen cabinets, painting, replacing plumbing fixtures in the same spot, and in Toronto, waterproofing repairs and installing a sump pump. Our guide to 25 home projects and whether they need a permit goes through the common ones.
The work that does need a permit, and that buyers most often find done without one, includes:
- a basement finish with a new bathroom, moved walls, a separate entrance or a lowered floor
- removing a load-bearing wall to open up a kitchen
- a second unit or “in-law suite”
- decks above a certain height, additions, sunrooms and garages
- new or moved plumbing and changes to heating
Electrical work is separate. It is covered by a notification to the Electrical Safety Authority (ESA), not by the city building permit. A house can have a city permit for a basement finish and still have wiring that was never inspected.
If the work you are worried about is a finished basement, start with our guide to buying a house with a finished basement, which covers records requests, water and second units in detail. This article focuses on what happens next: the risks and the fixes.
The risks you take on as the buyer
The city deals with the owner
The City of Toronto says plainly that the current registered owner is responsible for permits taken out by a previous owner, and that if work was done without a permit, the owner pays any fees or penalties, even if a contractor said no permit was needed. Mississauga also says it is the homeowner’s responsibility to make sure a required permit is obtained. When you close, that becomes you.
Orders, work stoppages and redoing work
If the city learns of the work, through a complaint, an inspection for another permit or your own application, Toronto lists what can follow: all work stops while the permit application is processed, you may have to undo work already done, and you may need extra structural or mechanical work to meet the code. Orders can also be registered on title. Mississauga’s 2026 fee schedule charges a non-refundable $618 administrative fee to discharge an order to comply from a property’s title.
Under Ontario’s Building Code Act, an individual can be fined up to $50,000 for a first offence and up to $100,000 for later offences, as summarised by the Town of Deseronto. Fines are set by a court and are not the usual outcome for a homeowner who comes forward to fix work, but the possibility is why the work should not be ignored.
Insurance
The Insurance Bureau of Canada has warned that if your insurer does not know about a renovation, you may not be paid for it after a loss such as a fire. Unpermitted work that caused a loss, such as a plumbing leak or an electrical fire, can make a claim harder. Tell your insurer what you know about the house before you close and get the answer in writing.
Lenders and resale
Toronto notes that open permits can delay or complicate a sale, that buyers and lenders may ask for proof the work was completed and inspected, and that a lawyer may advise against buying a property with an outstanding permit. The same questions will be asked when you sell. Problems you do not fix now are passed to your buyer, and they will price them in.
Safety
Permits exist because inspectors check things you cannot see once the drywall is up: structure, fire separation, venting and drainage. A removed load-bearing wall without a properly sized beam, or a basement bedroom without an exit window, is a safety issue before it is a paperwork issue.
How to find out before you buy
- Ask the seller in writing what work was done, when, by whom, and whether permits and final inspections were obtained. Ask for the permit card, drawings and sign-offs.
- Check the city’s records. Toronto’s online permit status tool covers active permits up to 10 years old from the application date. Full building records go through a records request, which Toronto aims to answer in 30 business days, often longer than a conditional period. Brampton and Mississauga handle requests through their building divisions.
- Look for open permits, not just missing ones. In Toronto, a permit with no inspection for 18 months or more is treated as dormant, and the City issues a Notice of Intention to Revoke. A permit that was taken out and never closed is a common finding.
- Ask your lawyer for an ESA Search of Records. ESA’s guidance for buyers is to request it as part of the purchase. Records go back to 2000. ESA says that if open electrical notifications exist, the buyer takes on responsibility for correcting them.
- Use the home inspection. An inspector cannot see inside walls, but can point out work that looks newer than the rest of the house, amateur wiring, and plumbing or venting that does not look right. Our home inspection checklist covers the other tests worth doing.
Five ways to deal with it after you buy
| Option | When it fits | What it involves |
|---|---|---|
| 1. Apply for a permit for the completed work | Work that needed a permit and you want to keep | Drawings of what was built, a permit application and the extra fee for work started without a permit. The inspector may ask you to open walls or ceilings, or to provide an engineer’s or architect’s report confirming compliance. |
| 2. Close an old open permit | A permit was issued but final inspection never happened | In Toronto, book a final inspection. If work was done without inspections along the way, you may need engineer or architect reports. If a previous owner took out the permit, ask Toronto Building whether to transfer it or request an inspection to close it. |
| 3. Have a licensed electrical contractor assess the wiring | Electrical work with no ESA notification, or open ESA defects | ESA recommends an assessment by a Licensed Electrical Contractor, which focuses only on the electrical system. Any correction work goes through the normal ESA notification process. |
| 4. Remove or reverse the work | Work that cannot meet code without major cost, such as a second kitchen you do not need | Removing a feature can still need a permit, for example taking out plumbing or structural changes. Ask the building department first. |
| 5. Leave it and accept the risk | Minor work where the risk is mainly paperwork | Not advisable for structural, plumbing, fire separation or second unit work. You will face the same questions when you sell, and an insurer may too. |
What a permit for finished work costs
The city fee is usually the smallest part of the cost. The bigger costs are drawings, an engineer’s report if needed, opening and repairing walls, and any work needed to bring things up to code. Those depend entirely on the house, and we do not publish estimates for them. Get written quotes.
| City | Basement finish permit fee | Extra fee for work started before a permit |
|---|---|---|
| Toronto | $6.20 per m², minimum fee $214.79 | 50% of the permit fee or $214.79, whichever is greater, to a maximum of $29,456.99 per permit (rates from January 1, 2026) |
| Brampton | $326.21 flat fee for stand-alone residential work such as a basement finish or deck | 50% of the total permit fee, to a maximum of $13,360.76 (2026 schedule, revised February 2026) |
| Mississauga | $5.64 per m² for finishing a basement in a house, semi, townhouse or duplex; Part 9 residential minimum fee $244.00 | No surcharge for starting work early is listed in the City’s February 1, 2026 fee summary. Confirm the total with the City. |
Worked example for a 60 m² basement finish in Toronto: 60 × $6.20 = $372.00, which is above the $214.79 minimum. Half of $372.00 is $186.00, which is less than $214.79, so the extra fee is $214.79. City fees total $372.00 + $214.79 = $586.79. In Brampton, the same basement finish is $326.21 plus 50% ($163.11), or $489.32.
Basement finish permit fee calculator
This estimates the city permit fee and the extra fee for a basement finish done without a permit in Toronto or Brampton. It covers city fees only, not drawings, engineering or repair work.
Based on 2026 published fee schedules. Brampton charges a flat fee, so area does not change it. To convert square feet to m², divide by 10.764.
What to ask your lawyer to put in the offer
The standard OREA Agreement of Purchase and Sale lets the buyer’s lawyer make requisitions about outstanding work orders before closing. In a 2025 Ontario Superior Court decision, Reel em Inn and Resort v. RNR Doemel Enterprises, sellers who refused to deal with outstanding work orders tied to an unpermitted change were found to have repudiated the deal, and the buyer got its $50,000 deposit back. That protects you against orders that already exist. It does not cover work the city has never seen, which is the usual problem with unpermitted renovations.
For that, talk to your lawyer before you sign. Points worth raising:
- a condition giving you time to review building and ESA records, with the seller’s written consent for the city to release them
- a seller warranty about what work was done and whether permits were obtained, and whether it survives closing
- a requirement that the seller close any open permits, or obtain a permit for named work, before closing
- if that cannot be done in time, a price reduction or a holdback from the sale proceeds, held by the lawyers until the work is permitted
- a home inspection condition long enough to bring in a contractor or engineer for a second look
In a competitive market, conditions can weaken an offer. If you plan to waive them, do the records checks and ask the seller questions before you offer, and price the cost of fixing the work into what you pay. If the house is a fixer-upper you plan to renovate anyway, you may be able to fold the permit work into your own renovation permit.
If rental income from a basement unit is part of your plan, an unregistered unit is a bigger issue than a missing permit. See our guide to registering a basement apartment in Brampton.
Looking at a house with renovations you are unsure about? See how we help buyers check permit history before an offer. Selling a renovated home? A free home evaluation is a good time to gather your permits and close any that are still open.
FAQ
Who is responsible for unpermitted work after I buy the house?
You are, as the new owner. The City of Toronto says the current registered owner is responsible for permits taken out by a previous owner and pays any fees or penalties for work done without a permit. Mississauga also says obtaining a required permit is the homeowner’s responsibility.
Can you get a permit for work that is already done?
Yes. You apply for a permit for the completed work. Toronto adds a fee of 50% of the permit fee or $214.79, whichever is greater, to a maximum of $29,456.99. Brampton adds 50% of the permit fee to a maximum of $13,360.76. The inspector may ask you to open walls or provide an engineer’s or architect’s report.
Will the city find out about unpermitted renovations?
It may. Common ways include a neighbour’s complaint, an inspection for a later permit, or the owner applying to legalize the work. Once the city is involved, Toronto says work must stop while the application is processed, and some work may need to be undone or redone.
Does home insurance cover damage from unpermitted work?
It can be harder. The Insurance Bureau of Canada has warned that an insurer that does not know about a renovation may not pay for it after a loss. Tell your insurer what you know about the house before closing and get its answer in writing.
Should I walk away from a house with unpermitted work?
Not always. Minor work may be easy to legalize. Structural changes, plumbing, fire separation and second units carry more risk. Get the records, ask the building department what it would need, and get quotes before you decide or waive conditions.
Sources
- City of Toronto, Working without a permit (modified October 24, 2025)
- City of Toronto, Building permit fees (2026 rates, modified June 19, 2026)
- City of Toronto, Closing building permits (modified September 18, 2025)
- City of Brampton, 2026 Permit Fee Schedule (revised February 2026) and Building permits for homeowners
- City of Mississauga, Building Division fees, February 1, 2026 and Building permits for home renovations
- Electrical Safety Authority, Buying and selling the fixer upper
- Town of Deseronto, What happens if you contravene the Building Code Act, 1992
- Insurance Bureau of Canada guidance on renovations, as reported by Canadian Underwriter
- Reel em Inn and Resort v. RNR Doemel Enterprises, 2025 ONSC 805, as summarised by Gardiner Roberts LLP
Featured photo: home under renovation with exposed wooden beams, Local Toronto media library. Shown for illustration only; not a specific property.
This is general information, not legal, insurance or building code advice. Confirm requirements with your city’s building department and ask your lawyer about offer wording. Local Toronto, HomeLife Landmark Realty Inc., Brokerage.