# experience with 'no final permit' additions



## tobuyornottobuy (Nov 19, 2011)

I am looking at a property that had an addition with no final permit, this was completed in 2005 I believe.
I am interested in it as a buy-to-let. I would have an inspection prior to purchase to ensure structurally sound.

Has anyone purchased such a property and if so were there any pitfalls to consider.
It is a back-front duplex with an excellent cash-flow potential (which makes me slightly dubious!). It is in the Comox valley (Vancouver island)


Many Thanks


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## Four Pillars (Apr 5, 2009)

What do you mean by "no final permit"? Is there any permit at all?

In Toronto, we've gotten permits for work to be done and then the permit is closed after the final inspection. Is that more-or-less what you are talking about?


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## sags (May 15, 2010)

I believe you would have to obtain a permit before the property can be transferred to your name.

One consequence could be the municipality will order the addition be torn down.

After a building inspection by the municipal officer, they may decide to allow the application for a permit, but it will depend on if the electrical and plumbing was inspected before the drywall was installed, so it may involve some work and some cost.

I would beware until all the legal papers are in order.


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## sags (May 15, 2010)

Another consideration is financing.

If you are paying cash, I suppose you could do what you want and assume the liability.

If you are borrowing from the bank, they will demand all the legal documentation be in place.


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## tobuyornottobuy (Nov 19, 2011)

I would need a mortgage for about half the price.
I asked for clarification from my realtor regarding what no final permit meant but she just replied to tell me there was no final permit! This led me to believe that I was being naïve on terminology due to not being a BC native! I will obviously have to get further clarification, 
What I thought it meant was that the building work hadn't been signed off so to speak. Apologies for only providing half the info, I thought the phrase may make complete sense to others.
I will perhaps ask again when I know what I am asking ......I know how frustrating it is when people don't research before asking :rolleyes2:! Cheers guys


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## sags (May 15, 2010)

It would be some type of building permit...........and the final or last one can go by various names.

One such name is "occupancy permit"..........but the names can change in different jurisdictions.

All it means is the final inspection was done and the building inspector has approved the work is up to municipal codes. It also means the permit fees are paid.............and likely a property appraisal has been done for municipal tax purposes.

The real estate agent has a fiduciary duty to reveal if there is no final permit. I don't know why they wouldn't elaborate more, because anyone buying the home will employ a lawyer................and they will advise their clients on the consequences of no permit and advise accordingly. If the real estate agent hopes it will go by unnoticed...........they are in for a surprise.

Almost always that means................the buyers lawyer insists the permit is obtained and paid for............before the sale can take place.

Perhaps a good place to look for information is with a real estate lawyer.........because you will need one anyways.


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## tobuyornottobuy (Nov 19, 2011)

I have a little more info! - It appears that the issue was that a firewall is needed to get it up to code-that was what the city told me. The tenant felt there may also be some electric work needed...which I agree needs updating at some point but may not be needed for the additions to be passed. There are currently tenants in both sides so I would have to try to get the vendor to evict a tenant before I purchased so that I could do the work to make it safe and up to code. I wouldn't feel happy taking on a tenanted property that was not really legal. Mind you, I don't like having to evict tenants either, but a building being safe is my first priority.
Thanks for the replies thus far, I will see what a lawyer thinks about me getting it up to code, basically it is underpriced as this work is outstanding.


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## OhGreatGuru (May 24, 2009)

I vote for "nottobuy". Don't buy this can of worms.


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## MrMatt (Dec 21, 2011)

OhGreatGuru said:


> I vote for "nottobuy". Don't buy this can of worms.


I second that, walk away.
These "minor paperwork" issues tend to blow up nasty, why take the risk? If it's a great deal, run. When they're leaving money on the table for you to deal with the issue instead of them, there has GOT to be a reason.


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## tobuyornottobuy (Nov 19, 2011)

The votes have been counted and there are 0 in favour 4 against and 1 abstainer (the dog).....too many issues to take on. Thanks guys


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