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What Legalization of Cannabis Means to Home Buyers, Sellers, Condo Owners & Renters


Cannibis

Just one more day until Cannabis is legal in Canada.  

What is this going to mean to you as home buyer or seller? 

In a matter of days, cannabis will become legal across Canada. How will this new era affect the home buying and selling process? CREB®Now sat down with Ryan DeLuca, supervisor of training and compliance at CREB®, to discuss the information buyers and sellers need to avoid getting stuck in the weeds.

CREB®Now: How will cannabis legalization affect the homebuying process?

DeLuca: Legalization won’t change the process itself, but it will affect buyer expectations of what the seller must disclose.

Buyers should pay attention to disclosure and ask direct questions like “has cannabis been grown in the property?” They should also talk to their mortgage broker and insurer to find out if home growth will affect their mortgage application or their ability to get home insurance.

CREB®Now: Will cannabis home growth affect the resale value of a property?

DeLuca: We won’t know the answer to this until cannabis becomes legal and statistics become available. Anecdotally, if we’re talking about small-scale home growth of four plants, there shouldn’t be very much impact on property value.

“MOST HOME INSPECTORS USE GROWING FOUR TOMATO PLANTS AS AN ANALOGY FOR THE EFFECTS OF MARIJUANA HOME GROWTH. REALISTICALLY, PEOPLE GROW PLANTS IN THEIR HOMES ALL THE TIME WITH LITTLE RISK TO THE PROPERTY.” – RYAN DELUCA, CREB® SUPERVISOR OF TRAINING & COMPLIANCE

Most home inspectors use growing four tomato plants as an analogy for the effects of marijuana home growth. Realistically, people grow plants in their homes all the time with little risk to the property.

CREB®Now: What are potential damages from cannabis home growth that buyers should be aware of?

DeLuca: Since cannabis has the potential to cause structural issues to a property, it’s recommended to get a proper home inspection.

With large-scale medical home growth and illegal grow operations, two big things to keep an eye out for are unpermitted electrical work and moisture/humidity issues that cause mould.

CREB®Now: Is it necessary to get a home inspection?

DeLuca: Getting a home inspection is always a good idea.

Sellers aren’t always aware of damages in their own homes, so despite asking direct questions, a buyer might discover unknown issues after purchasing the property.

It’s also a good idea for sellers to get a home inspection prior to listing. This way, the seller can correct any issues found and avoid having a deal fall through from damages discovered during the buyer’s home inspection.

CREB®Now: If a home seller has grown cannabis in their property, how do they ensure they’ve covered their bases?

DeLuca: Any time you’re doing something in the home that can create potential damage, move it outside if possible. Taking home growth outdoors or to a greenhouse is ultimately better for a property’s structure and its resale.

If you’re installing a large system for medicinal growth, get a building permit and hire a professional for proper installation so there is no risk of damages from poor workmanship.

LIGHTING UP IN YOUR CONDO 

(Photo by Thought Catalog on Unsplash)

If you own a Condominium check with your Condo Board for Regulations
A condo board can create its own restrictions on cannabis cultivation and use.

"There's nothing in our legislation that prevents condos, condo boards or apartment landlords from further restricting it, and I've heard the mast certainly, in in a lot of cases, they have." said Matt Zablonski, the City of Calgary's project lead for the legalization of cannabis. 

In fact, Boardwalk, one of the largest apartment rental companies in Canada, confirmed recently it is banning, smoking, eating or growing cannabis in all its properties across the province.

Discuss this with your condo board as each condo board may have different rules. The creation and use of edibles may be possible in your condo with permission.

IF YOU ARE A RENTER

If you are renting a condo, or home please check with your landlord regarding the use or growing of cannabis in the owners property.

"We encourage you to talk to your landlord about edible cannabis  products. Although edible cannabis products such as brownies and cookies cannot be legally sold until further federal and provincial regulations, edible cannabis products may be made at home" says the City of Calgary website.

"If you live in a rental unit, you might consider discussing it with your landlord  whether rules would allow for edibles to be made in your building."

CONSUMPTION IN THE TOWN OF CANMORE

According to the Town of Canmore website they are still working on public consumption regulations. 
We are still determining how public consumption of cannabis will be regulated in Canmore. Regulating public consumption outside of the provincial regulations (see Background section below) would require an update to Canmmore's Smoking Control Bylaw. This topic will be at the council meeting on October 16 for a decision.

For more information on what cannabis legalization means in Canmore go to the Town of Canmore website at https://canmore.ca/projects/ca... 

CREB (Calgary Real Estate Board) has written an excellent series of articles regarding this to access more articles go to www.crebnow.com  or read the special e-edition regarding Cannabis here.

Categories: Real Estate News

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