Skipping a required permit is one of the most expensive shortcuts in construction. The consequences are real and they do not go away with time: stop-work orders, orders that attach to the property and follow it to the next owner, insurance that will not pay out, mortgages that stall, and a legal duty to disclose the work when the home is sold. On top of that, the code that applies is not always the provincial one. At least one major city runs its own building by-law, so checking the local rules matters as much as the provincial code.
The real consequences of unpermitted work
The damage from unpermitted work shows up across several fronts, often years later when the property is sold:
- It attaches to the property, not the person. In British Columbia, a Work Without Permit Order is registered against the property and passes to a new owner, who then becomes responsible for resolving it. It cannot simply be cancelled. It is resolved only by bringing the work into compliance, which can run into tens of thousands of dollars.
- You must disclose it. Once a seller knows about unpermitted work, they are legally required to disclose it to buyers. Failing to disclose creates legal liability against the seller after the sale.
- Insurance can refuse to pay. Home insurers may decline to cover areas with unpermitted work, or deny a claim that arises from it. Unpermitted electrical, structural or plumbing work can void coverage.
- Mortgages and appraisals stall. Appraisers flag gaps between the listed space and municipal records. Lenders may refuse to advance funds against unpermitted space, and an unpermitted basement suite cannot be used to justify a higher valuation.
- Retroactive permits mean opening things up. Most jurisdictions let an owner apply for a permit after the fact, but the authority will require access to inspect, which usually means opening walls, ceilings or floors to verify compliance, often against the current code rather than the code in force when the work was done.
- In Quebec, the contract is unenforceable. A contractor who did not hold the required RBQ licence cannot sue for unpaid invoices. The licence-or-no-contract rule is unambiguous.
The honest summary for any client tempted to skip the permit: the saving is small and the liability is large, and it lands on whoever owns the property when it surfaces.
Some cities have their own code
The provincial code is not always the whole story. The clearest example is Vancouver. Because of its City Charter, Vancouver writes and enforces its own building code, the Vancouver Building By-law (VBBL, Bylaw #14343, in force around September 15, 2025). The VBBL is NOT the standard British Columbia Building Code. Work in the City of Vancouver is governed by the VBBL, while work in the surrounding municipalities follows the BC Building Code (which itself came into force on March 8, 2024). A contractor crossing the Vancouver city line is crossing into a different code.
Beyond a separate code, municipalities routinely add their own layers:
- Local licences. Some cities require their own business or trade licence before you can pull permits there. Toronto, for example, requires renovators to hold a city renovator licence.
- Higher energy standards. A municipality can mandate a stricter energy step than the provincial minimum.
- Local programs. Cross-connection control, zoning, heritage rules and tree by-laws are all local and can affect your job.
The rule of thumb: the provincial code sets the floor, and the municipality can add to it. Always check the local building department, not just the provincial code, before you start.
Common mistakes
- Believing unpermitted work "goes away." Orders attach to the property and surface at sale, often years later.
- Hiding it from a buyer. Known unpermitted work must be disclosed; concealing it creates post-sale liability.
- Assuming the provincial code is the only code. Vancouver runs the VBBL, not the BC code, and other cities add their own licences and standards.
- Counting on an easy retroactive permit. Bringing old work into compliance usually means opening it up and meeting current code.
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