Unlawful Basement Construction, Refusal to Sell, Court Eviction

Legal Guide · Divorce Property Series

Illegal Basement Conversions, Refusal to Sell, and Court-Ordered Evictions
— Three Frequently Underestimated Legal Risks in Ontario Divorce Property Cases

Author: Miao (Mia) He, Barrister & Solicitor  ·  H Law Firm Ontario  ·  Ontario Family Law Lawyer

Family Law Act, R.S.O. 1990, c. F.3, ss. 19, 21, 24  ·  Building Code Act, S.O. 1992, c. 23  ·  Courts of Justice Act, R.S.O. 1990, c. C.43
Question 01
What does an illegal basement conversion mean when selling a property in a divorce?
Question 02
What can the law do if the other party refuses to sell or cooperate?
Question 03
Can the court really evict someone from the matrimonial home?

In Ontario, the answers to all three questions are much clearer than most people expect, and the legal tools are far more powerful than many realize. The issue is not whether these tools exist, but knowing how to deploy them at the right time.

In the 2026 case of Li v. Jiang, lawyer Miao He faced a situation where all three issues overlapped, successfully securing comprehensive relief across all three dimensions in a motion.

Question 01 An Illegal Basement Conversion Is a Ticking Time Bomb During a Divorce

In the Greater Toronto Area, converting a basement into a rental unit without applying for a building permit is extremely common in Chinese households. During the marriage, this issue is often shelved—rent is collected, and no one pursues it.

Divorce changes everything. Unpermitted basement apartments create a triple risk when selling a property during a divorce:

Risk 1
Directly depresses the selling price. Informed buyers will significantly discount their offers due to non-compliant renovations because they are purchasing not just the property, but also the costs and legal liabilities of obtaining retroactive permits or remediation later. In the Greater Toronto Area, this price difference can amount to tens of thousands of dollars.
Risk 2
Becomes a shield in the hands of an uncooperative spouse. "The house has compliance issues and cannot be sold right now"—this statement can be used to indefinitely delay court-ordered sale procedures while sounding superficially reasonable.
Risk 3
Triggers buyer lawsuits after the sale. If both parties fail to honestly disclose the illegal construction during the sale, the buyer has the right to hold the sellers legally accountable upon discovery. At that point, the divorced couple becomes co-defendants.

Legal Remedies and Solutions

  • Retroactive Permit: Apply to the city to have a building inspector evaluate whether the existing renovation meets Building Code standards. If compliant, a permit is issued retroactively; if not, remediation is required before reapplying.
  • Restoration: Demolish the non-compliant parts and restore the property to its original state. The cost is usually lower than the retroactive permit process, but the rental value of the basement is lost.
  • When the other party refuses to cooperate with any repairs: A motion to enforce can be brought before the court. The court can authorize the applicant to unilaterally hire a contractor to complete the necessary compliance work without the other party's signature or consent. This is not a unilateral decision by the applicant, but a power conferred by court order.
Question 02 The Court Orders a Sale, But the Other Party Won't Budge—What Can You Do?

Delay Is a Strategy, Not an Accident

When one party uses delay as a negotiation weapon, their logic is very clear: the longer it takes, the greater the other party's financial pressure, the closer their psychological endurance is to its limit, and the higher the likelihood they will compromise on other terms.

In practice, this strategy usually manifests in the following ways: refusing to cooperate with real estate agents in scheduling viewings; intentionally being absent or refusing to open the door on scheduled viewing days; rejecting every offer under various pretexts; claiming the property has issues requiring "further assessment"; and refusing to sign sale-related documents.

Each action viewed in isolation may look like a legitimate objection. Systematically combined together, they constitute a substantial breach of a court order.

What an Enforcement Motion Can Achieve

Unlimited Access Order
The applicant can arrange for agents, inspectors, and contractors to enter the property without the other party's consent, directly breaking the strategy of obstructing the sale by controlling access.
Unilateral Signing Authority
The court can authorize the applicant to sign sale-related documents unilaterally or appoint an officer to sign on their behalf, making the sale process no longer dependent on the other party's cooperation.
Mandatory Timeline
The court sets binding, specific deadlines, translating the vague obligation of "should sell" into an enforceable order of "must complete a certain step by a specific date."
Cost Awards
The other party's unreasonable delays will incur financial consequences imposed by the court through cost awards. A $4,000 cost award was secured in Li v. Jiang.
The spring season (March to May) in the Greater Toronto Area is the most active period for real estate transactions. A property that fails to list due to the other party's delays can experience price differences of tens of thousands of dollars compared to listing in the fall or winter. Ontario courts will recognize the loss of market timing as one of the grounds for disproportionate harm suffered by the applicant.
Question 03 Can the Court Really Evict Someone from the Matrimonial Home?

Yes. Many people are unaware of this.

  • 1 Exclusive Possession Order
    Under Section 24 of the Family Law Act, the court can grant one party exclusive possession of the matrimonial home and order the other party to leave—regardless of how the property is registered or whether the other party is also a co-owner.
  • 2 Writ of Possession
    If the occupant still refuses to leave, the court can further issue a Writ of Possession, to be enforced by the Ontario Court Enforcement Office. Enforcement officers have the authority to execute the eviction by force.
  • 3 Contempt of Court
    Remaining in the property will constitute contempt of court, carrying legal consequences such as fines or even imprisonment. An eviction order is not a punitive measure; it is an enforcement tool.

When All Three Issues Combine: Why an Overarching Strategy Is Needed

Illegal construction, refusal to sell, and refusal to leave often overlap in real-world cases: the existence of illegal construction provides a "legitimate reason" for delay; the delay prevents the illegal construction from being addressed; and the dual deadlock results in one party's long-term occupation while the other party's funds are trapped and market timing is lost.

Breaking this cycle requires advancing two tracks simultaneously in a single motion: authorization for compliance repairs regarding the illegal construction, and an application for an exclusive possession order regarding the occupation. This allows the court to see the full picture of the issues in a single proceeding and grant comprehensive relief covering all dimensions.

This is precisely why in high-conflict, multi-issue divorce property cases, a lawyer's strategic judgment—rather than mere legal knowledge—determines the outcome.

When Should You Consider an Enforcement Motion?

Legal advice should be sought as early as possible in the following circumstances:

  • The other party has refused to cooperate with the court-ordered sale process for more than three months.
  • The property has unpermitted alterations, and both parties cannot reach an agreement on how to handle them.
  • The other party controls property access rights, preventing agents, inspectors, or contractors from entering normally.
  • Your funds have been locked in the property for more than six months, affecting other financial arrangements.
  • The critical real estate transaction windows in the Greater Toronto Area (spring or fall) are approaching, and the sale process has made zero progress.

Real Case Records (Independently Verifiable)

Ontario Superior Court of Justice · 2026 · Handled illegal construction, enforcement motions, and exclusive possession orders simultaneously in the same case and obtained comprehensive relief
Ontario Superior Court of Justice · Complete victory in both motion and appeal stages · Appeal upheld the original judgment in Li v. Yang, Divisional Court No. 460/24 ML
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This article is for general legal education reference only and does not constitute specific legal advice. Every case is different; it is recommended to consult a practicing lawyer regarding your specific situation.

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