Growop’s a Bummer for Real Estate Agents (05/18/2007)

Canada’s realtors are declaring war on former marijuana growop’s. While stopping them from launching is beyond there control, coming together to developing a clear policy to protect the unsuspecting buyer from the repercussions of purchasing one of these properties. Unfortunately providing a clear policy the issue has been difficult.

Among other concerns, former grow-ops pose health risks, structural damage due to mould or water, or changes to the foundation as a result of growers trying to bypass electricity meters or obtain power illegally. All these things can drastically reduce a properties value.

The Canadian Real Estate Association, provincial real estate associations and local real estate boards are also offering their members training and workshops with police and industry groups. They have introduced mandatory or voluntary disclosure requirements for sellers and are doing as much as possible to increase public awareness about the potential pitfalls of former grow-op sites.

The Calgary Real Estate Board (CREB) participates in a grow-op task force that includes fire, police and health officials, as well as banks and mortgage brokers. A majority of CREB members also take courses and workshops provided by the board and city police during the past two years. . CREB requires that realtors have sellers sign a disclosure form regarding a property’s grow-op status. Realtors who do not disclose could be held liable for damages.

The City of Calgary requires that a condemned former grow-op’s remediate heating, electricity, plumbing and air quality be inspected and approved before it goes back on the market. Calgary’s city council gets positive reviews for creating new bylaws that give municipal officials more authority over the remediation process. Calgary is probably slightly ahead than other municipalities on grow-ups because it tackles the problem collectively and came up with some good recommendations.