Anyone can park on your property in front of the garage?!? Or they are allowed to park on the street in front of the driveway because the garage/driveway addition was never approved and it's illegal? And if you don't get it approved it will have to be torn down?

Sounds like a deal breaker to me

Looks like a very nice home. Only you can decide if it's worth the potential hassle. If you love it, I'd weigh whether people actually are vying for parking spots on the street in the neighborhood, whether the garage was an approved bit, etc. If I went for it, I'd probably sneak out at night and paint the curb bright yellow or red to try to prevent parkers.

The only people that would park in front of that 'driveway' are people that know that it's an unpermitted and illegal addition. Those same people are going to be complaining to the city about the structure and the owner will be forced to take it down. Plus, it sounds like the city knows about the illegal structure now (since the OP enquired about it), so it won't be left unnoticed for long.

Parking in Toronto can be a nightmare and illegal driveways are quickly stomped on. A lot of people depend on the street parking since they don't have driveways and they have to pay for a permit to park overnight. So when someone takes some of that parking away, the neighbours aren't happy. (Although I'm not familiar with this neighbourhood in particular).

So only buy the house if you are willing to pay to have the garage/driveway demolished or take the chance that you can get it approved for that huge amount.

I pulled the picture out of the listing so others can see it quickly. So, someone can block you from backing out of your driveway? You would think people would have the sense not to. Is the neighborhood mostly street parking?

If you purchase be prepared to pay for the curb cuts. Once the curb cuts are done legally, people will not park there. Do not be too surprised if the city also asks for the garage to be removed or gives you a large fine/fee. That age of house in this area would have had a small garage facing the alley or simply a pull in. You can tell this by looking at the other houses. The other things listed are not things that the seller is obligated to provide. You will need to correct after you purchase but if you do not have the extra money pass.

I would also wonder if the seller did other illegal things to the property.

The other problems are minor, are not standard in houses, and are things that you can do if you choose to have them - or not.