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If you’re looking for a detached house in Vancouver, you’ve likely encountered homes with unauthorized renovations or basement suites. This situation is especially common in older homes. However, these types of properties come with significant risks. Ideally, you want a property where renovations have proper permits, but aside from newer homes, such properties can be hard to find. Here’s what to consider:
Visual illustration of unauthorized suites and renovations without permits
First, verify if the seller maintains detailed records of the property’s condition before, during, and after the renovations. Did the seller use licensed tradespeople who adhered to current building codes? Are there records documenting the completed work? Check whether the work was done recently or many years ago. Ask if the renovations significantly changed the floor plan and consider if the property would still appeal to you if you needed to remove them.
If the home already has unpermitted work, think twice before applying for permits for future renovations. If the city inspects the property and finds unauthorized work, they could fine you and require costly renovations to bring everything up to code. This could be especially expensive if the unpermitted work significantly altered the floor plan, potentially leaving you with a home that differs from what you purchased.
An unauthorized basement suite may need removal—such as the kitchen or bathroom—which could mean losing essential rental income for your mortgage. Redoing or removing renovations can be both expensive and time-consuming. While obtaining retroactive permits is possible, it is challenging and should not be counted on.
Strata bylaws mandate that renovations receive both strata approval and city permits. Strata approval depends on you obtaining proper permits, and if you skip this step, they can fine you and require the removal or re-permitting of renovations. Unauthorized renovations in condos are common and include changes like wall removal to open up kitchens or the addition of in-suite laundry or pot lights. These modifications pose risks because they may affect not only your unit but also the building’s common areas. Check when the work was completed, if it met building codes, and if the strata approved it. Proceed cautiously if the strata has no records.
Most basement suites in Vancouver are unauthorized. To make a suite legal, it must meet strict requirements for exits, ceiling height, plumbing, electrical systems, smoke alarms, and more. The City of Vancouver provides detailed secondary suite requirements. If the suite hasn’t been permitted, getting it approved may be unlikely or require costly work, such as raising the house or digging out additional exits.
If you’re considering a property with an unauthorized basement suite, understand the risks. The city might require you to remove the suite or make costly renovations to meet code, potentially causing a loss of rental income. Reports from tenants or neighbors often trigger city inspections, so this risk is largely beyond your control.
Unauthorized renovations or unapproved work in strata properties can affect home insurance coverage. Ensure your policy covers issues arising from unauthorized renovations; otherwise, you may face liability for damages they cause. This risk is especially significant in strata properties, where damage could extend to other units. Additionally, if an unpermitted addition exists, insurance may not rebuild it after a disaster. Speak to an experienced insurance broker to understand potential coverage limitations before buying.
Sellers must disclose unpermitted renovations to the best of their knowledge. This information is a “Material Latent Defect,” something that an inspection might not easily reveal. However, not all sellers realize this obligation, so ask directly about any renovations.
Obtaining permits may take weeks or months and adds costs to renovations, but starting with a property in original condition and securing permits adds value and boosts buyer confidence when it’s time to sell. If a home already has unpermitted work, tread carefully when considering new renovations. The city might require you to correct existing unpermitted work during permit applications.
Contact the City of Vancouver to verify what permits are on file. You can also use their Permit Search tool, which covers renovations since 2016. For older work, reach out by phone, email, or chat on their website.
Need assistance navigating these complexities? Connect with an experienced real estate professional to guide you through the process.
