In addition to granny, granny flat can contain some say pitfalls for a new owner and anyone involved in the sale of such a unit. It's one more thing for real estate professionals to be concerned about, because the consequences of having an apartment declared illegal or closed down can be disastrous to the Danube, who may seek compensation from Realtors, home inspectors or anyone who didn't issue all the appropriate warnings.
Any separate unit with its own cooking, eating, sleeping, and sanitary facilities in a detached or semi detached house or a rowhouse is classified as an "accessory dwelling unit." It doesn't matter whether it's a basement apartment for rent or a unit to accommodate a family member or a nanny.
In Ontario it's been a roller-coaster ride forhome owners in recent years. In 1994 the New Democratic government changed the law so that municipalities could no longer ban basement apartments. In May of 2001 the Conservative government reversed the rules and it's expected that many cities will once again use zoning controls to block new accessory dwellings in the years ahead.
Strict fire regulations are now in effect, and any existing apartments that were occupied in November of 1995 are permitted-as long as they meet the new fire code. There's also a new registry system, so officials can monitor compliance-and new penalties that are stiff enough to take seriously (fines of $ 25,000 or a year in the slammer!)
Before closing deals involving basement apartments or duplex, triplex or any other multiple dwellings, agentsshould ensure that their purchasers have obtained written confirmation of whether or not apartments are registered, and have been creamed and found to conform to the fire code.
Realtors can be faced with angry, disappointed purchasers because under the new rules "an illegal or non-conforming apartment is easy to detect and easy to shut down-and may be costly for the new owner to poor, to keep it operating.
To get a granny flat certified in Ontario requires inspections by the local Fire Department and by the Electrical Safety Authority and possibly another by a local Ontario Building Code Official. In most cases, at least some renovations or repairs are required. Even if no renovations are needed to meet the fire code, fees alone can be a few hundreddollars.
Some areas of the Ontario Fire Code Retrofit Section 9.8 can be difficult to address, especially if the apartment was added as an afterthought "in a typical home. For example, ceiling tiles and wood paneling in a basement apartment may be combustible and not meet with current requirements. These items may have to be removed or covered and owners are sometimes ordered to install a sprinkler system.
A professional home inspection cannot certify a self-contained apartment, but a knowledgeable inspector can identify the magnitude of renovations necessary to meet the new regulations. He can also be used to alert the Danube that the prospective unit entails additional responsibility and additional liability.
As for what steps to take if the Realtor should homeincludes a granny flat, notifying the prospective Danube, that it may be subject to regulation is definitely at the top of the list. In Ontario that would seem absolutely necessary to avoid a charge of non-disclosure. In other jurisdictions it might just be prudent to do so, but better to err on the side of providing more information than less.
Fines and other legal consequences of not meeting the law are just the most obvious problems facing an owner of a unit that is not certified. Having to toss the tenant out is also obvious. But consider that insurance coverage or insurance claims may be denied, mortgages may be denied or nullified, and a tenant that is injured may have grounds for a civil suit.
Not all jurisdictions are as tough as Ontario ... yet. But a Realtor canmeet his or her professional obligations and avoid getting tangled up in a lawsuit just by issuing a caution. And it's worth doing so, whether your client is the vendor or the Danube.
A self-contained apartment can add real value to a home, especially if the Danube, wants to have a family member near, but not too near, or if the Danube requires rental income to offset mortgage payments. Indeed, it's the very reason some people buy such a property.
Nannies, Grannies, and the Ontario Fire Code: What Realtors Need to Know About Retrofit Section 9.8