October 7th - 2006

New law steps up fight against grow ops

A new law came into effect in August giving police, municipalities and electricity companies the power to crack down on marijuana grow houses.

A new law came into effect in August giving police, municipalities and electricity companies the power to crack down on marijuana grow houses. The Law Enforcement and Forfeited Property Management Statute Law Amendment Act, 2005, “requires a local municipality to ensure that a building is inspected if it is notified by a police force that the building contained a marijuana grow operation.”

City officials will be responsible for inspecting a property that police have identified as a grow house and order repairs if the property is deemed unsafe. Homeowners or landlords will not be allowed to sell or rent out the property until the work is completed.

The law also gives local hydro utilities the authorization to cut hydro to homes where safety and security are deemed an issue, and law enforcement officials have been empowered to seize the proceeds of grow operations for crime prevention and victim compensation. Maximum penalties have also been doubled for fire hazards caused by faulty wiring.

REALTOR® concerns
Identifying or being informed that a home had been used as a marijuana grow operation is a concern for REALTORS® who want to protect their buyers, and themselves. Some communities already make the information available to the public, but there is no coordination across the province. For example, police forces in London and Durham post the addresses of homes formerly used as grow operations on their Web sites. Some Toronto police divisions, such as 42 division, also post grow op information, but only for their jurisdiction.

Central registry
Currently, there is no statutory requirement for property owners to reveal what a home was used for in the past, making it difficult for homebuyers and REALTORS® to protect themselves. But, the McGuinty government also announced it is considering the creation of a province-wide registry for homes that have been implicated in the production of marijuana. A ten-member expert panel including representatives from the real estate industry, police, the insurance industry, building officials and government met at OREA in August to discuss the proposed registry and how it will work. Further meetings will take place over the next few months.

With a central registry in place, REALTORS® will be able to double-check that a property has never been used as a grow op. In the meantime, be proactive in protecting your buyer and yourself by:

  • Specifically inquiring of the listing agent or seller as to whether the property has been used as a grow op or for other criminal activities.
  • Specifically inquiring as to whether the sellers have knowledge of any defects — latent or patent.
  • Ensuring that the agreement of purchase and sale contains a representation on the part of the sellers that the property has not been used  as a grow op or for criminal activities.
  • Recommending to their buyer that a building inspection be done.

Know the signs
A buyer agent should be aware that there may be no obligation on the part of sellers to voluntarily disclose that the property has been used as a grow op.

Marijuana grow houses are typically filled with mould and have faulty electrical wiring because circuits are tampered with as growers bypass metres measuring power consumption. However, it can be difficult for REALTORS® to identify a former grow op if tell-tale signs have been covered up. Depending on how new the operation is, mould may not appear for months or years.

While grow ops often require extensive cleanup and repair, it is possible that these repairs were never made and the real damage is hidden. Noticeable signs that you may be dealing with a former grow op include:

  • Mould in corners where the walls and ceilings meet
  • Signs of roof vents
  • Painted concrete floors in the basement, with circular marks of where pots once were
  • Evidence of tampering with the electric meter (damaged or broken seals) or the ground around it
  • Unusual or modified wiring on the exterior of the house
  • Brownish stains around the soffit that bleeds down along the siding
  • Concrete masonry patches, or alterations on the inside of the garage
  • Patterns of screw holes on the walls
  • Alteration of fire places
  • Denting on front doors (from police ramming the door)

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