Buying or selling a South Island home with unpermitted work? Here's what it means in Greater Victoria and the Cowichan Valley, and how to sort it out.
Picture this. You've found the one: a gorgeous Westshore home with a finished basement, or a Cowichan Valley place with a sweet addition out back. The price feels right. Then someone says the magic words: "We're not sure that was permitted."
If you're buying or selling anywhere on Southern Vancouver Island, you're in good company. Lots of homeowners from Sidney to Sooke and Duncan to Ladysmith have skipped the permit process at some point, and plenty of today's owners inherited the problem from someone else.
Growing up on the Island, and now helping neighbours buy and sell here, I hear one question again and again: "Should I pull a permit?" My answer is always a resounding yes, if one is required.
What Is Unpermitted Work?
Unpermitted work is any construction or renovation done without the permits required by the local municipality or regional district. The most common examples on the South Island are:
Finished basements and illegal or unregistered suites
Additions, sunrooms, and enclosed decks
Garage conversions
DIY electrical, plumbing, or gas work
Structural changes, like removing walls
Extra bedrooms that don't match the septic system (more on that below)
Permit rules differ from place to place. What needs a permit in Saanich may be handled differently in Langford, North Cowichan, or the Cowichan Valley Regional District. The only way to know for sure is to check with the local building department.
Why Do People Skip Permits?
Mostly money and hassle. Permits cost money, the work may need to be brought up to current code, and a finished space can bump up the property assessment. For someone planning to stay in their home forever, skipping the permit can seem harmless.
But the next owner inherits the consequences, and that's often when the problem surfaces.
The Risks for Buyers
A home with unpermitted work is a home with a bit of baggage. Sometimes it sells for less than a comparable permitted home, and sometimes it doesn't, which is why you need to know what you're getting into before you remove subjects.
You may inherit the problem
Once you own the home, the unpermitted work is yours. The municipality may ask you to apply for permits after the fact, which can mean drawings from a designer or engineer, opening up walls for inspection, and upgrades to meet current code. In some cases, local governments can also register a notice on title when there's a building bylaw contravention, which can complicate a future sale or refinance.
Insurance may not respond
If there's a fire, a flood, or an injury in an unpermitted part of the home, your insurer may push back on the claim. Talk to your insurance broker before you buy, not after.
Your lender may care
Lenders and insurers are connected, and unpermitted space can complicate financing or renewals. It's not common, but it's not something you want to discover at the worst possible time.
Neighbours can raise the issue
Most neighbours on the Island are fantastic. But a boundary dispute or a feud can turn into a call to the building department fast.
Secondary problems, especially with septic
This one is big in the Cowichan Valley and rural parts of the South Island. If an earlier owner added bedrooms without permits and the onsite septic system was designed for fewer, you could have a system that doesn't match the home. That can mean an expensive upgrade down the road. If the home is on septic, ask what the system was designed and filed for, and have the system inspected.
What Buyers Can Do
When you find unpermitted work on a home you love, you've got options:
Accept the risk and move forward. If the price reflects it and you're comfortable, you can plan to permit the work later. Many municipalities would rather you come forward and get it squared away.
Ask the seller to fix it. It doesn't hurt to ask, especially if the home has been sitting. Some sellers will do it, and others will offer a price adjustment instead.
Walk away. That's a perfectly valid choice. There are lots of homes on the South Island, and you'll find one without the baggage.
Do your homework early. Ask the municipality about the permit history on the property (many have online lookup or a file request process), review the Property Disclosure Statement carefully, and talk to your realtor and lawyer about any red flags before subjects come off.
Selling a Home With Unpermitted Work
If you're selling, here's the honest truth: don't hide it.
In BC, the general rule is "buyer beware," but there are important exceptions. Sellers can't misrepresent a property and must disclose known latent defects. If you fill out the Property Disclosure Statement, the answers need to be accurate. Hiding known unpermitted work is a quick route to a legal headache after closing.
Step 1: Find out what you've got
Look through your records and the municipal permit history to see what was permitted and what wasn't. If you bought the home recently, the previous owner's paperwork and your lawyer's file may help too.
Step 2: Decide your path
Sell as-is with full disclosure. You may need to price accordingly, and some buyers will walk or won't qualify for financing.
Legalize it first. Often this is the best long-term move, though it takes time and money.
How to Legalize Unpermitted Work
It's usually less scary than people expect. It takes time and effort, but it's not the end of the world. The general steps are:
Contact your local building department. Ask how they handle permits for work already completed. Each municipality has its own process.
Gather documentation. Photos, receipts, drawings, and any records of the work.
Bring in a professional if needed. For larger projects, that may be a designer, architect, or engineer who can assess the work and draw up what's needed to bring it into compliance.
Apply for the permit. Include your plans and supporting documents.
Complete any required upgrades. Sometimes inspectors will want walls opened up or work corrected.
Pass inspections. Depending on the project, that could mean electrical, plumbing, structural, and a final inspection.
Electrical and gas work is overseen separately by Technical Safety BC. Homeowners can sometimes pull permits for work on their own principal residence, but the work still has to meet code and pass inspection.
The costs vary widely depending on how extensive the work is and how much needs to be corrected. Get a clear picture of the numbers before deciding between legalizing and selling as-is.
What About Fines?
There's no one-size-fits-all answer. Some municipalities take a gentle approach to people who come forward, while others can be stricter. Calling your local building department with a general question is a good way to understand how they typically handle it.
Will a Home Inspector Catch It?
Not usually. Most home inspectors check the condition of the home, not its permit history. That's why permit research is a separate step you or your realtor should take.
What If the Seller Didn't Disclose?
If you've bought a home and discovered unpermitted work that wasn't disclosed, speak with a real estate lawyer promptly. Whether you have recourse depends on what was said, what was known, and whether it qualifies as a latent defect or misrepresentation.
Final Thoughts
Buying or selling a home with unpermitted work can be tricky, but it doesn't have to derail your plans. For sellers, legalizing is usually the best route. For buyers, go in with your eyes open, do your due diligence, and negotiate accordingly.
Are you buying or selling in Victoria, the Westshore, the Cowichan Valley, or anywhere on the South Island? I'm always happy to chat it through, no pressure.
Mike Doughty | RE/MAX Camosun
📞 778-400-0475 | ✉️ mike@mikedoughty.ca | 🌐 www.southislandliving.ca
This article is general information, not legal advice. Permit requirements vary by municipality, so always check with your local building department and consult a real estate lawyer for your situation.