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ARTICLE · 02 JANUARY 2025

Must A Buyer Accept An Open Building Permit On Closing?

Bennett Jones LLP
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More recently, however, the Court again considered whether the closure/removal of an open building permit can be requisitioned as a matter of title in Ontario…and it came to an answer that is unsettling to some.

CanadaReal Estate and Construction

In recent years, courts in Ontario have struggled with the answer to this question, and we direct you to our earlier blog, Requisitioning the Closure of Open Building Permits, on the subject that considered the 2022 case Chan v Mangal1 that also looked at the issue.

More recently, however, the Court again considered whether the closure/removal of an open building permit can be requisitioned as a matter of title in Ontario...and it came to an answer that is unsettling to some.

As a practical matter, a buyer of real estate does not want there to be an open building permit when it purchases a property. An open building permit suggests a risk that some work at the property may be unfinished...which of course is problematic for a purchaser. So as a business matter, the buyer of the property will want the open building permit closed.

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