Humber/Ontario Real Estate Course 3 Exam Practice

Why might a property require a retroactive building permit before closing?

1. A:To ensure all additions comply with local codes

2. B:To legally recognize non-permitted work done previously

3. C:For zoning confirmation

4. D:For tax purposes

5. E:To clarify property boundaries

6. F:Enforcement of community covenants

The correct answer is: B:To legally recognize non-permitted work done previously

A property might require a retroactive building permit before closing primarily to legally recognize any non-permitted work that has been completed in the past. When alterations or additions to a property are made without the necessary permits, they can create liabilities for future owners, including potential fines or orders to remove non-compliant structures. Obtaining a retroactive permit allows the owner to bring the property into legal compliance, thus providing peace of mind to both the seller and buyer. While ensuring compliance with local codes, zoning confirmation, tax implications, property boundary clarifications, and adherence to community covenants are all important aspects of real estate transactions, they do not specifically address the necessity of recognizing prior unpermitted work. This distinction highlights why the focus on legal recognition of non-permitted work serves as the primary justification for a retroactive building permit.