So, you’re gearing up to list your house. You’ve tackled that leaky bathroom faucet, scrubbed every corner, decluttered like a pro, and even repainted half your house. You’ve got all your paperwork lined up—surveys, tax documents, and utility bills—ready for potential buyers. You’re feeling great with yourself are are ready to sell your house until you find out that you missed one critical detail: your old renovation permits are still open.

Many home sellers overlook these permits, thinking they aren’t a big deal and no one will find them, but that is actually not true. A quick online search can bring up all open permits associated with your property. This overlooked detail can turn into a significant obstacle when you’re trying to close a deal. In this post, we’ll break down what open permits are, why they matter, and how to handle them before selling your home.

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What are open renovation permits?

Let’s start with the basics. If you’ve done any renovations in your home—whether it’s adding a new room, updating your plumbing, or making electrical improvements—you likely needed to apply for a city of Toronto building permit. These permits are essential because they ensure that the work done on your property complies with Ontario building codes and local zoning laws.

But life gets busy, and sometimes, homeowners forget about these permits. Maybe you started a project and decided to cancel it, or your contractor completed the work but forgot to call for a final inspection to officially close the permit. Whatever the reason, if you have open permits, they can create major headaches for you down the road—especially when you’re trying to sell your home.

Are you thinking about selling your home soon? Here are a few other articles to help you on your journey:

• How to Sell an Older Home in West Toronto
• Move Vs. Renovate: What is the Right Choice For You?
• How to Handle Buyer Feedback the Right Way

Buyers can back out—or even sue!

Here’s where things get tricky. Having an open permit can actually derail your real estate transaction. Once you sign a contract, it’s binding to a degree. Buyers may back out of a deal even after signing if they discover certain preexisting issues, such as liens or ongoing work orders. Open permits fall into this category, and in Ontario, courts have ruled that having an active permit is a valid reason for a buyer to back out.

But it doesn’t stop there. If you don’t disclose these open permits (or any related property defects), you could find yourself facing lawsuits in the future. While not every claim will hold up legally, lack of transparency can put you at risk. If a buyer faces costs due to work that’s not up to code or other issues stemming from open permits, they might come back to you for reimbursement. It’s a lesson you definitely don’t want to learn the hard way!

The best strategy is to be upfront about any open permits if you can’t close them and negotiate accordingly. Some buyers might be willing to take on the responsibility of closing out permits if it means they can get a better deal on the purchase price.

Curious about what it’s like to work with us? Find out how we speed up the home-selling process and blow sellers away right here.

Problems with lenders may occur.

Open renovation permits can also complicate things with lenders. Most real estate contracts include a clause that the deal is contingent on the buyer obtaining financing. If a buyer needs a mortgage, the lender will conduct an appraisal before approving the loan.

What happens if the appraiser discovers an open permit? Your buyer might not qualify for the mortgage they need to close the sale. This can stall or even collapse your transaction, leaving you in a very frustrating situation.

Keep reading these blogs for even more home-selling advice:

• What to Expect When My Home Hits the Market
• How to Declutter Your Home When Selling Your Home
• What to Do When You Need to Sell Your Home Fast

How to handle open renovation permits?

So, what should you do if you discover that you have open renovation permits? The most crucial step is to close them before listing your house for sale. Think of this as part of your due diligence—it’s not just about getting your house looking good; it’s also about ensuring all the legal paperwork is in order.

Stick to a straightforward plan to get everything in order:

1) Check for open permits online: Begin by checking for open permits linked to your address on the City of Toronto’s website or by reaching out to your local municipality to inquire about any permits associated with your property. This is a crucial step, as it allows you to address any issues before they become a problem.

2) Close the permits: If you find open permits, contact the building department and take the necessary steps to close them out. This could be as simple as scheduling a couple of inspections or as complicated as completing any required work to bring the renovations up to code.

3) Be prepared for some surprise costs: Depending on the work done and why the permit wasn’t closed in the first place, you might have to remove certain improvements or pay a penalty before you can close the permits. But remember, tackling this is crucial before the home sale to save yourself a headache later.

4) Communicate: If you’re on a tight timeline and can’t close the permits before the sale, make sure to keep potential buyers informed about your situation and your plans to resolve it. Disclosing open permits upfront can help build trust and may lead to a smoother negotiation process.

When it comes to selling your home, communication matters in more ways than one, here’s why your agent’s communication style matters to your Toronto home sale.

The golden rule

When it comes to selling your home, remember the golden rule: treat your buyers the way you’d want to be treated. Imagine you purchase a home only to find out later that you can’t make necessary renovations because of an open permit from a previous owner. It’s frustrating, right?

As real estate agents, we want buyers to be happy with their purchases—even if we’re not representing them. So, it’s in everyone’s best interest to approach this process transparently.

Ready to Sell? We’re Here to Help!

If you’re looking to get the best possible price for your home while avoiding pitfalls like open renovation permits, we’d love to assist you. Our team at Get Nested is here to guide you through the entire selling process, ensuring you’re well-prepared for a successful sale.

Feel free to reach out, and let’s chat about how we can help you navigate this journey! Fill out the form on this page, call us directly at 416-909-1602, or email hello@getnested.ca to get in touch today!

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