Open building permit

A buyer of a business that owns or leases premises meets this when renovations or additions were done before the sale. This entry covers Ontario and Toronto only; check the rules where the premises are. For the wider checks, see what environmental checks you need before buying a business.

How it works in Ontario

• Ontario’s Building Code Act, 1992, s. 8(1), says no person shall construct or demolish a building, or cause that to be done, unless the chief building official has issued a permit.
• The City of Toronto says a building permit remains open until all required inspections are completed and the permit is officially closed.
• Toronto says open permits can create issues for property owners, including delays when selling a home, challenges obtaining new permits and potential enforcement actions.
• Toronto says that if the work was done by a previous homeowner, the current owner is still responsible for closing the permit.

What to ask

Ask the seller for the permits issued on the premises and whether each is closed. A work order and outstanding permit search shows what the municipality has on file. Ask the municipality what is needed to close a permit and who must request the inspection.