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Section 31 Ontario Building Permits Explained: A Buyer's Pre-Closing Guide
“The basement was finished by the previous owner” is the sentence buyers should fear most. Section 31 gives municipalities full authority to inspect, stop work, and order remediation — and the orders stay with the property, not the previous owner.
Why Section 31 matters
Section 31 of the Ontario Building Code Act grants the Chief Building Official authority to enter, inspect, and issue work orders, stop-work orders, or demolition orders.
Key point: orders attach to the property, not the previous owner. Once you close, you inherit every unpermitted change.
What Section 31 actually empowers
Section 31 is enforcement power, not a suggestion. Municipal inspectors can enter, document, and require any owner to either obtain a retroactive permit, stop using a space, or remediate unauthorized work. Orders are recorded against the property title — not the person who built the work.
Five common unpermitted issues buyers inherit
How to check permits before you write an offer
What happens if you discover unpermitted work after closing
Insurance claims denied (fire claims especially when unpermitted electrical is involved); next buyer demands price cuts or walks; municipal enforcement orders remediation or demolition; second mortgages refused.
Already closed and just found out — your three options
1) Retroactive permit — engage a qualified contractor and structural engineer, produce as-built drawings, apply for after-the-fact permit. Costs $10k-$30k+ typically; 2) Restore to original condition; 3) Do nothing — but insurance and resale risk remains until you sell.
FAQ
How long does a Section 31 permit records check take?
Toronto Building Records Search returns in 3-5 business days. Most 905 municipalities deliver in 5-10 business days. Build a 7-10 business day condition into the offer.
Will a standard home inspection find unpermitted work?
No. Standard home inspectors assess visible construction quality, not permit records. The two checks are complementary and both are necessary.
Is the seller required to disclose unpermitted work?
In theory the Seller Property Information Statement (SPIS) requires disclosure of known issues, but SPIS is optional in Ontario. Most sellers do not complete one. Buyers must investigate independently.
Can I still buy a home with an unpermitted basement apartment?
Yes, but price it accordingly. Either require seller to obtain retroactive permits before closing, or negotiate a discount that covers $10k-$30k retroactive permit costs and risk.
Do insurance companies check permits?
Usually only at the claim stage. If a claim's root cause is unpermitted work — fire from DIY wiring, water damage from unpermitted plumbing — the insurer can deny coverage.
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