The applicant purchaser sought a declaration that an open building permit relating to a garage constituted a valid objection to title under an agreement of purchase and sale for residential property.
The respondent estate argued the permit was inconsequential because no work had been undertaken and the permit merely authorized construction rather than requiring it.
The court held that an outstanding building permit creates potential exposure to municipal inspections, work orders, remedial construction, and litigation, thereby affecting the purchaser’s use and enjoyment of the property.
Given the uncertainty surrounding whether the permit could be closed and the potential cost of compliance, the permit constituted a defect going to the root of title.
The purchaser’s requisition requiring the permit to be closed was therefore valid and the respondent had not shown good title.