No Permit, Big Problems: Building Code Compliance, Implied Terms And Vendor-Builder Liability In Ontario

In Oliva v. Dickson (2025 ONSC 6666), the Ontario Superior Court of Justice delivered a decision that should capture the attention of developers, vendor-builders and anyone selling improved property in Ontario. The case is a pointed reminder that Building Code compliance is not merely regulatory housekeeping. It can become both an implied contractual obligation and the foundation for tort liability years after closing.

The Facts (and Why This Wasn't a Typical Transaction)

The defendant vendors purchased a property in Hamilton Township and undertook significant renovations before selling it to the plaintiffs. The work included raising the house by four to six feet (a major structural alteration designed to enlarge the basement), installing a new septic system and constructing a garage. A building permit was obtained for the garage. No permit was obtained for raising the house or for the installation of the new septic system and the garage permit did not cover the