Whether you’re representing a seller or a buyer, it’s essential to be aware of any renovations or modifications completed without the required municipal permits.
As a listing agent, you have a duty to disclose all known material latent defects, including unpermitted work. A best practice is to review the property’s permit history before listing. If work has been completed without permits, it must be disclosed, and sellers should be advised that this can impact property value and marketability.
As a buyer’s agent, it’s equally important to ensure your client understands the risks. Unpermitted work can affect a buyer’s intended use of the property and may create issues down the line. Once the transaction completes, the buyer assumes full responsibility for that work. It’s also important to highlight that home insurance may not cover unpermitted construction. Always request and review permit documentation as part of your due diligence.
Municipalities are increasingly focused on enforcement. The City of Surrey, for example, has taken a strong stance on illegal construction, emphasizing safety and holding property owners accountable for work done without proper permits. This includes a range of additions and modifications that may not meet building or safety standards. The city has stated that it will “continue to prioritize residents’ safety by holding anyone accountable for building without permits and in violation of the rules and regulations.”
The takeaway is clear: understanding and addressing unpermitted work is a key part of your professional responsibilities. Taking the time to identify these issues and properly advise your clients helps protect their interests while also safeguarding your own reputation as a REALTOR®.
Professional Standards