Welcome back to Three Bullet Thursdays, part of our Title Tips series, from Zinati Kay – Real Estate Lawyers.
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With nearly 30 years of experience navigating Ontario Real Estate Law, almost 30,000 transactions closed without a Title Claim, and having been featured in numerous publications, we’re committed to bringing you clear, concise, and relevant information every Thursday.
To know this Thursday:
Permits Matter — When “Just Renovating” Can End in a Demolition Order
Most homeowners think of building permits as paperwork — something inconvenient that slows down renovations.
But a recent Ontario court decision is a powerful reminder that permits are not optional, and the consequences of ignoring them can be severe.
In The Corporation of the Town of Ajax v. 1940475 Ontario Inc., 2025 ONSC 5325, the court upheld a municipal enforcement application that resulted in an extraordinary remedy:
the demolition of above-grade construction built without proper permitting and inspections.
Here are the three things every Ontario homeowner and buyer should know:
1. Building without the right permit can lead to stop-work orders — and even demolition
In the Ajax case, construction advanced beyond what was allowed under a conditional permit.
The Town issued multiple directives, including:
- an Order to Comply
- a Stop Work Order
- a court injunction
The developer continued building anyway.
The court emphasized that Ontario’s permit and inspection regime exists to protect public safety — and that ignoring it undermines the entire system.
The result: the court confirmed it had authority under section 38 of the Building Code Act to order that unauthorized construction be removed.
For homeowners, the lesson is simple:
If work requires a permit and it isn’t obtained, municipalities can require the work to stop — or even be undone.
2. Permits are not just bureaucratic — they protect you, your safety, and your resale value
Many residential renovations can trigger permit requirements, including:
- structural changes
- finishing basements
- additions or extensions
- plumbing and electrical work
- removing load-bearing walls
- secondary suites
Permits ensure:
- plans are reviewed
- inspections occur at the right stages
- work meets Ontario Building Code standards
Skipping permits can create major problems later, including:
- unsafe or uninspected work
- difficulty obtaining insurance coverage
- orders to open walls or redo construction
- enforcement action from the municipality
And importantly…
3. Unpermitted work can come back to haunt you when you sell
Even if a renovation “looks fine,” unpermitted work often becomes an issue during resale.
Buyers frequently ask:
- “Was this basement finished with permits?”
- “Was the deck inspected?”
- “Is this addition legal?”
If the answer is unclear, it can lead to:
- closing delays
- buyer demands for proof or repairs
- price reductions
- legal disputes after closing
In serious cases, municipalities can issue compliance orders years later — long after the work was completed.
Best practices before renovating:
- Ask your municipality whether a permit is required
- Use qualified, insured contractors
- Keep copies of permits and inspection sign-offs
- Never assume “small work” means “no permit needed”
- When in doubt, speak to your lawyer before resale
Dig deeper:
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Ontario Building Code Act, 1992
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Ontario Ministry of Municipal Affairs — Building permits overview
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As always, we’re here to answer your questions and provide guidance — especially if you’re buying, selling, or planning renovations that could affect title, closing, or resale.
Wishing you a great week ahead.