Open Building Permits in Alberta: What Buyers Need to Know

You've found the perfect home. The neighbourhood is right, the price works, and the layout fits your family. But buried in the municipal records is something most buyers never check: an open building permit. In Alberta, this is more common than you might think, and it can have real consequences for your purchase.

What Is an Open Building Permit?

An open building permit (sometimes called an unfinaled permit) means that a permit was issued by the municipality for construction or renovation work, but a final inspection was never completed. The work may have been done correctly, but without a final sign-off from the city, there is no official confirmation that it meets building code requirements.

Common Causes

Open permits often occur when a contractor completes the work but never schedules the final inspection. This is particularly common with older renovations: basement developments, deck additions, and garage builds from the 1990s and 2000s. In some cases, homeowners completed work themselves without realizing an inspection was required.

Why Open Permits Matter for Buyers

Insurance Implications

Some insurance companies may require that all permits be closed before issuing or renewing a policy. If you purchase a home with an open permit on a basement development, for example, your insurer may flag it as a risk.

Mortgage Conditions

Lenders may include permit status in their assessment. While not all lenders check, an open permit on a major structural change could become a condition of financing.

Resale Value

When you eventually sell, the next buyer's agent may flag open permits during due diligence. Resolving a permit after purchase, especially years later, can be more difficult and costly than addressing it during the transaction.

How to Check Permit Status in Edmonton and Calgary

Edmonton

The City of Edmonton maintains official permit records. Property Proof aggregates this data and classifies each permit as Closed, Open, Expired, or Unknown. See our Edmonton property history page for more detail on what's included.

Calgary

The City of Calgary also maintains building and development permit records. Property Proof normalizes Calgary permit data into the same status classifications, making it easy to compare across cities. See our Calgary property history page for details.

What to Do If You Find an Open Permit

If a property history report reveals an open permit, don't panic. Here are your options:

• Ask the seller to close it. In many cases, the seller can schedule a final inspection with the municipality to close the permit before the sale completes.
• Negotiate a credit. If closing the permit isn't feasible before possession, you may negotiate a price adjustment or holdback to cover the cost.
• Factor it into your offer. Knowing about an open permit before you make an offer gives you leverage to adjust your price accordingly.

The Bottom Line

Open building permits are one of the most overlooked risks in residential real estate. A property history report surfaces this information before you commit, giving you the facts to negotiate from a position of strength. Check our FAQ for more on data coverage and availability.