Bought a Home with Unpermitted Work? Here’s What Winnipeg Buyers Should Know
First things first—we genuinely hope the discovery of unpermitted work in a property wasn’t a total surprise.
As Realtors, it’s our responsibility to guide our buyer clients through every stage of the home-buying journey. That includes digging into all the accessible records and databases available to us, cross-referencing what we see during showings with what’s officially on file with the City of Winnipeg.
In most cases within Winnipeg proper, that process is fairly straightforward. The City maintains a robust database that allows us to review past permits, work completed, and flag any inconsistencies between what's on file and what’s physically present in the home. And if something doesn’t line up? We raise the red flag before you sign on the dotted line.
But let’s be honest—it does get a little trickier in rural areas.
Many rural municipalities don’t have the same digital accessibility or comprehensive permitting databases that Winnipeg does. That doesn’t mean we don’t still do our due diligence—it just means we rely on a mix of experience, visual cues, and a healthy dose of investigative instinct.
Often, there are telltale signs when work has been done without permits:
Basement bedrooms that don’t meet egress standards
Suspiciously “recent” looking renovations with no paper trail
Electrical panels that have been updated but not inspected
Layouts that don’t match historical floorplans or prior listings
Comparing current listing to previous listing to see what has changed and cross-referencing permit databases
Square footages that are off when compared with City assessments
Or really, anything else that doesn’t jive with a City assessment or Permit History
Our job is to spot these indicators and help you navigate next steps—whether that means walking away, negotiating repairs, or working with the City to get things onside post-purchase.
What Happens If the Basement Was Finished Without Permits? One Buyer’s Real-Life Experience
Let’s say you fall in love with a home. It checks all the boxes: great layout, ideal location, and that fully finished basement feels like bonus square footage you didn’t think you’d find in your budget. But then… you check the City of Winnipeg’s permit records and realize: that basement? It’s not recognized as finished.
What now?
Well, I’ve actually had a buyer client go through this exact scenario. They still decided to proceed with the purchase—but only after weighing the pros, cons, and potential next steps. What follows is a recap of their journey, shared with their permission, so other buyers can go in informed.
Step 1: Confirming the Status
The first thing we did was pull permit records through the City of Winnipeg. While the basement was clearly renovated—framed walls, drywall, flooring, and even a bedroom and rec room—none of that work appeared to be permitted. This isn’t uncommon, especially in older homes that have changed hands a few times.
We discussed the risks, and they made the choice to move forward, with eyes wide open.
Step 2: Making It Right With the City
After possession, the buyer reached out to the City themselves. They were upfront and transparent—essentially “tattling on themselves,” which (believe it or not) is the best approach.
They told the City:
“We bought this home with an unpermitted basement and want to get onside with current code.”
From there, the City assigned an inspector. Here’s how it unfolded:
Step 3: The Inspection (Best-Case Meets Reality)
What they looked at: The inspector reviewed plumbing, electrical, framing, and vapour barrier work—what could be seen without ripping walls open.
What they found: Everything appeared to be up to standard except one thing: no hardwired smoke detectors in the basement rooms.
What was required: installation of a hard-wired smoke detector in the recroom, plus one in each of the basement bedrooms.
Step 4: The Costs Involved
Here’s a rough breakdown of what my client paid:
Permit fees (done retroactively): ~$450 total (this is double the fee from obtaining permits upfront)
Electricians for smoke detector install & wiring: ~$2,500
Time + logistics: 3–4 weeks from start to finish
In total, they were looking at ~$3,000 to bring the basement up to code after the fact. It wasn’t ideal, but they considered it a small price to pay for peace of mind—and a legal basement they could use fully and confidently.
Important Caveats:
Every situation is different. I’ve had inspectors who were supportive and solutions-focused, and others who were, let’s just say, a little less flexible. Worst-case scenario? The City could ask you to remove drywall to inspect wiring or vapour barriers—or even gut the basement entirely if major safety issues are discovered. I’ve never had a client go through that, but I’m always honest: it can happen.
The story above really did happen. But I had clients that did a formal home inspection, were confident that the work had been done well, and were willing to take the gamble. They knew there was a chance that some of the beautiful work they admired might have to be removed but for them, it was worth the risk given the information available to them.
🔎 The Permitting Grey Zone: What We Often See
Sometimes sellers do disclose unpermitted work—often with a line that reads something like:
“Basement was finished without proper permits by a licensed contractor. All work done to code.”
Sounds nice, right? But the truth is, that line doesn’t hold much water legally.
When asked to obtain permits retroactively, many sellers are reluctant. Why? Because applying for permits after the fact opens a can of worms. They could be told to expose electrical. Or redo plumbing. Or install fire-code-compliant smoke detectors. And that’s if the City finds the work acceptable.
So here’s the million-dollar question:
If the seller isn’t willing to take on that risk—and they know more about the work than you do—why should you?
💥 One More Real Example: The “Basement Bathroom” Surprise
Just last week, I had a client offer on a home with a beautifully finished basement. The seller disclosed that the work was unpermitted. But a deeper dive into City records showed they had pulled a permit for a basement bathroom in 2021.
So what’s the issue?
The permit was still open. And the rest of the basement—the recroom, bedroom, hallway—was finished without any other permits. If the City decides to close that permit, it could trigger a full review of the basement... and open the door to inspections, remediation, or worse.
Luckily, this wasn’t our first rodeo.
We consulted a trusted real estate lawyer who recommended inserting a clause into the offer requiring that all open permits be closed prior to possession. That way, there were no loose ends and no surprises down the road.
Fun fact: our standard Offer to Purchase in Manitoba actually already includes language in line 5a that covers this exact issue. So even if you didn’t write a custom clause, you’d still be protected—but it’s worth double-checking in unique cases like this. We’ve had Lawyers require that any open permits be closed prior to possession on closings before, and this paragraph facilitates this.
⚠️ What Buyers Should Know
If you’re looking at a home with unpermitted work—whether it’s something small like recessed lighting or big like a full basement development or an addition—please understand the risks:
The City of Winnipeg or relevant Rural Municipality (RM) can force you to make changes
You may be required to bring everything up to current code (and 2025 codes are different from 2018 codes)
Retroactive permits are more expensive (often double)
Some lenders may be hesitant to finance homes with unpermitted structural changes
Insurance could be affected if something goes wrong in an unpermitted area
So What Should You Do?
Ask questions. Pull permit records. Do a proper inspection. Consult a professional (us!) who can guide you.
And if you're ever unsure—reach out.
We’ve helped dozens of clients navigate this exact issue, and while it’s not always black and white, we’ll give you the clarity you need to make a confident, informed choice.
Remember: our job is to make sure you’re not just buying a home—you’re buying wisely.
Bottom Line:
Unpermitted work does not have to be a deal-breaker. But if you are buying a home with unpermitted work done, be sure to do extra due diligence, set aside a budget for the worst-case scenario, and have a willingness to navigating a long (and at times) frustrating process. But that is honestly what we are here for. To run the numbers and scenarios with you, to sort those logistics. We’ll walk you through every step.
If you're ever unsure about whether a space is properly permitted or what the next steps would look like, just reach out. We’re here to help you make smart, informed choices.
#AgentJen
Jennifer Queen
Phone: (204) 797-7945
Email: Jennifer@QueenTeam.ca