Ajax homebuyers warned to check for open municipal orders before closing

Buying a home in Ajax? Work done without the right permits — a finished basement, an addition or other renovations — can leave an open municipal enforcement order attached to the property, and a new owner can inherit the problem. Daily Durham has heard from a local buyer who says an open order on a finished basement only came to light after closing.

Under Ontario's Building Code Act, a municipal building official can issue an Order to Comply requiring an owner to stop unauthorized work and correct the problem. In Ajax, the Town has used such orders in enforcement cases that reached the courts.

Resolving an order can mean hiring contractors, getting permits and inspections, and paying for corrective work — costs that can add up quickly. Title insurance may help in some cases, but coverage and limits vary by policy, so buyers should ask their insurer and lawyer what is actually covered.

One check buyers can make before closing: the Town of Ajax offers an Online Property Information Request through its eapply.ajax.ca portal, where applicants can request property information including zoning, heritage, building permits and violations. Fees apply, and requests are reviewed by Town staff. A real estate lawyer can also advise on title searches and what to ask about a property's permit history.

The message for buyers: ask questions about permits and past work before closing — especially for finished basements and renovations — and get answers in writing. An order issued before a sale does not necessarily go away when the property changes hands.