Homeownership is one of the most significant investments most people will ever make, and home renovation projects, including home additions, are a common way to enhance both the value and functionality of a property. However, when buying a home, especially in areas like East York, Toronto, there’s a hidden risk that many homeowners may not consider: illegal improvements made by previous owners. This is where title insurance becomes an essential safeguard.
Title insurance is designed to protect homeowners from potential legal and financial risks related to the ownership of their property. One of the most critical issues that it covers is illegal improvements, which is essentially any construction or renovation work on a property made without the necessary building permits or adherence to zoning laws. These can include but are not limited to home additions, basement apartments, garage conversions, porch enclosures, or any other modifications that alter the structure or use of a property.
In Toronto, particularly in neighbourhoods like East York, such unauthorized work is not uncommon, given the area’s older housing supply and the high demand for home improvement by new or seasoned home owners. Extra rooms, expansions, or porch enclosures added to a home without permits can compromise the home’s structural integrity. Converting a garage or a basement into an apartment or living space without a permit can also be problematic as many single family housing communities may not have been built with adherence to safety codes for tenants.
How To Spot Illegal Improvements In Your Home
It is all too common in Toronto for new homeowners to discover parts of their house were renovated illegally. This situation can be both incredibly stressful to deal with as well as expensive to fix. Understanding how to recognize signs of illegal improvements can help you take the right steps to address the issue.
Unfortunately, many illegal improvements are not easily detectable. In the case of an illegal addition, a home inspector , he will not be able to look at framing and structure, insulation, wiring, because of drywall finish, He will also have no way of verifying if the foundation was built according to code., If you are not looking for it, or suspecting that these types of renovations were made in the past, these illegal home improvements can often go unnoticed. It is more common to spot them pending a new renovation project.
If you notice areas in your home that appear poorly constructed, such as uneven flooring, misaligned walls, or unsafe electrical work, you would be prompted to get it fixed. This kind of substandard workmanship could indicate that the renovations were done without proper permits and inspections. It is also common for illegal improvements to be uncovered during a new renovation project. If you are unsure, Toronto contractor D2 Build offers an advisory service to determine if unauthorized modifications were made. Building inspectors, if your living space is subjected to them, can also uncover illegal improvements in their routine visits. When applying for a new building permit, inspectors could notice discrepancies between a building’s current state and the official records. Regardless of how they are spotted, illegal improvements are important to be recognized as both a safety risk and a complication for future renovations, not to mention compromising your property’s market value.
Verifying Home Improvements
If you suspect that your home has undergone illegal renovations, you are able to check the history of building permits associated with the property. Start with a property records search through the city’s website or local municipal office to check for any permits on file. Consulting a professional, such as an experienced Toronto contractor or building inspector, can also help assess whether the work likely adhered to building codes. Additionally, contacting the City of Toronto’s building department can provide information on whether the necessary permits were issued and if the renovations meet legal standards.
Title Insurance: Your Protection Against Illegal Improvements
Title insurance has become an essential part of real estate transactions, particularly in areas with a history of older homes and potential unpermitted work, such as East York. This type of insurance provides coverage for a range of issues that could affect your ownership of the property, including illegal improvements. This includes defects such as liens, encumbrances, or, most importantly, illegal improvements made by previous owners without proper permits.
When you purchase a home, title insurance can cover the costs associated with rectifying these issues, whether that involves bringing the illegal work up to code, obtaining the necessary permits, or, in some cases, even dismantling the illegal structures. It offers you financial protection in the event that illegal improvements are discovered after you purchase or move into a home. Title insurance could potentially cover the costs of addressing these issues, including necessary renovations or legal fees. Yes, title insurance often comes with legal support in taking legal action in certain instances that require dispute resolution. Ultimately, insurance in and of itself can provide you with peace of mind knowing that you are protected and free of unexpected financial strain in the event of uncovering an illegal improvement to your home.
If you discover illegal improvements on your property, the first step is to file a claim with your title insurance company. Begin by documenting the issue thoroughly with photos, inspector reports, and any other relevant evidence to support your case. Then, contact your title insurance provider, providing all the collected documentation and detailing the situation. Expect some initial scrutiny, as insurance companies often require substantial proof. After filing the claim, an adjuster will likely be sent to assess the extent of the illegal improvements and estimate the cost of addressing them, which could include obtaining permits, repairs, or removal of the improvements. Following the adjuster’s evaluation, you may need to negotiate the settlement amount, ensuring it covers all necessary expenses. Work closely with your contractor and legal advisor to finalize the settlement, after which the insurance company will provide the funds to rectify the illegal improvements.
D2 Build Can Help
Addressing illegal improvements in a home can be complex, but a skilled Toronto contractor like D2 Build can be invaluable in navigating this process. We can assess the extent of the illegal work and provide a detailed estimate for the cost of bringing it up to code, guiding you through the permitting process to ensure all necessary approvals are secured before any work begins. Once your title insurance claim is approved, D2 Build can start the required repairs or renovations to ensure your property complies with local laws, preventing future issues from arising.
Before purchasing your home, it is a good idea to hire a thorough home inspector to identify signs of unauthorized work. This walkthrough can advise you of potential issues. Be advised though, that oftentimes, even a trained eye can not detect an illegal home improvement, as the framing/structural, electrical. Plumbing, insulation etc is covered by finished drywall. The most certain method of discovery is a search of records by an experienced person.
Case Study 1: Woodmount Ave, East York
During an interior renovation project with a valid building permit in Toronto, a city building inspector discovered an unpermitted one-story addition on the property. The client, who had lived there for six years, was unaware of this issue. We advised them to contact their title insurance company because they had purchased the property assuming all structures were legal, which is typically covered by title insurance. Acting as the client’s liaison, we coordinated with the insurance company and conducted a site inspection with their adjuster. It was determined that the unpermitted structure needed to be demolished and rebuilt with the appropriate permits. We provided the necessary quotes and estimates, resulting in the client receiving approximately $150,000 for a new one-story rear addition. We designed and built a larger, brighter, and more functional addition within nine months, including consultation, coordination with the insurance company, securing a building permit, and completing the construction.
Case Study 2: Scarborough
A client purchased a home that included an addition and a finished basement, both represented as having been completed with proper building permits. After moving in, the client noticed issues with the plumbing in the basement washroom, prompting them to contact the City of Toronto for an inspection. A city building inspector visited the property and discovered that, while a permit had been issued for the work, it had never been inspected or officially closed. Recognizing the severity of the situation, the client reached out to their title insurance company, which protects homeowners against such undisclosed issues. The insurance company agreed to cover the costs associated with correctly closing the open building permit. This process involved several significant repairs performed by us, including excavating and waterproofing the foundation and replumbing the basement washroom to meet code requirements. Additionally, other necessary corrections were made to ensure the home met all building standards. With our help and open communication, the title insurance company covered all expenses, relieving the client of any financial burden. This case underscores the importance of thorough inspections and the valuable protection title insurance provides against unexpected and costly issues in real estate transactions.
Illegal improvements pose significant challenges for homeowners, but title insurance offers a welcome layer of protection. By understanding how to address illegal work, you can safeguard your investment and ensure that your home remains a safe and enjoyable place to live. If you suspect an illegal addition on your property, please contact us for confirmation and assistance.
Whether you’re dealing with an illegal home addition, basement apartment, or any other unauthorized renovation, having the right support, from a knowledgeable Toronto contractor like D2 Build, to a comprehensive title insurance policy, can make all the difference. By taking proactive steps to verify the legality of any improvements and working with professionals to resolve any issues, you can protect your home and your peace of mind.
