How to Buy Rental Property


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amit kalia   
Member since: Nov 03
Posts: 434
Location: Mississauga

Post ID: #PID Posted on: 24-01-08 07:53:57

All about basement apartments- courtesy Brampton City's website

History of basement apartments in Brampton
In 1994 the Bob Rae N.D.P. government (October 1, 1990 to June 26, 1995).proclaimed Bill 120 the Residents Rights Act which amended the Landlord/Tenant Act, the Rent Control Act, the Rental Housing Protection Act, the Planning Act and the Municipal Act. This Bill permitted second units in houses, regardless of Brampton’s Municipal Zoning, provided that Health and Fire safety standards were met.

On November 26, 1995 the new Conservative government introduced Bill 20, restoring back to municipalities the right to outlaw basement apartments, which became effective on May 22, 1996.

The effect of Bill 20 is to prohibit new apartments in houses created after May 22, 1996, while existing apartments in houses that were used or occupied on or before November 16, 1995 will be permitted (“grandfathered”) provided they conform with the requirements of the original Bill 120. Apartments created between November 16, 1995 and May 22, 1996 are also permitted if a Building Permit was issued.

What is a basement apartment / Secondary Suite?

A basement apartment is a self-contained apartment consisting of a room or rooms in a singe or semidetached house and can be located in any part of the house, not necessarily in the basement. They have also been called granny flats, nanny suites, accessory apartments and second suites. In the City’s bylaw, they are referred to as a “residential unit”.

A self-contained apartment shall have a separate means of entry (which may be through another unit) a kitchen (or cooking area) and bathroom facilities. A self-contained apartment may be as small as a single room that contains all of the features listed.

However, if you rent a room in a house or a flat with a shared entrance, kitchen and bathroom facilities, this bylaw does not apply to you.

Are basement apartments legal in Brampton?

There are approximately 3,000 homes with legal basement apartments in Brampton which were created as a result of the NDP’s Bill 120. In order for these units to be legal, they had to exist prior to November 16, 1995 and they had to be registered with the City of Brampton prior to January 31, 2006 and/or have legal non-conforming status.

Any basement apartments built since November 16, 1995 are illegal in the City of Brampton.

A single or semidetached registered home can only have one basement apartment. Homes that have been subdivided into more than two units are strictly prohibited unless the property has been specifically zoned to permit multiple units. There are very few exceptions where properties are zoned as a triplex.

How safe are legally registered basement apartments in Brampton?

All legal registered basement apartments in Brampton were required to comply with the Building Code and Fire Code at the time of approval. If the home has been subsequently modified or additional units added, building permits and the completion of mandatory inspections would have been required prior to any construction.

What should I know before buying a home with a basement apartment?

Homebuyers should have their Real Estate Agent or lawyer confirm with the City that the home being offered for sale has a legally registered basement apartment or is legal non-conforming and complies with the Building and Fire Code.

Real Estate Agents are bound by code of conduct guidelines and must fully and fairly disclose all information about a property for sale. Homes with doubtful legal status are typically listed with the caution “Vendor does not warrant retrofit status” and consumers should seek further legal advice before proceeding with a purchase offer.

Benefits of a legal basement apartment:

Peace of Mind – By having a second suite authorized you will know you did all that you could to make a safe healthy home for you and your tenant.

Reduced Liability – Adequate insurance coverage can be obtained.

Improved Relationships – A legal and safe second suite is likely to improve relationships with your tenants, your neighbours and with the City.

Risks of an illegal or unsafe basement apartment:

* Increased Liability – The onus is on a homeowner to meet established standards for a second suite. If anything should happen, such as a fire, the homeowner would be held liable due to failure to meet requirements.


* Loss of Insurance Coverage – Having a rental unit in your home is a material change to your home. Non-disclosure of this change of use may in fact make your coverage null and void.


* Limited recover of damage – An insurance policy is not responsible for rebuilding costs related to meeting current established standards. Your insurance company is only required to cover the costs of fixing your home back to the state that existed at the time your policy was made prior to any damage.


* Prosecution - If you do not meet City codes it means that you are breaking the law. You run the risk of being charged and can face fines with a maximum penalty of $50,000 and/or a year of imprisonment on each count.


* Financing – Income from an unauthorized basement apartment is generally not considered when qualifying for a mortgage loan.


* Tenants – You are a landlord. You are obliged to maintain your basement apartment in good operating order and you must follow all fire safety laws. Tenants may apply for rent reduction where the unit fails to meet the prescribed municipal health, safety, maintenance and property standards.


* Tenant Insurance – Your homeowner’s policy will not cover property owned by a tenant.


Can I legally convert vacant space in my home into a basement apartment?

No. The City’s zoning by-law does not permit new basement apartments. If the basement apartment did not exist in your home prior to November 16, 1995, a home in Brampton cannot be legally converted. Furthermore, any home built after 1995 can never have an existing legal basement apartment.

In order to permit a new basement apartment, the Zoning By-law would have to be changed. Changing the Zoning By-law requires the submission of a Zoning Amendment application and fee ($7759.00) to the City’s Planning, Design and Development Department. The application is processed by the Planning, Design and Development Department and a recommendation is made by the Department to City Council.

Part of the re-zoning process includes:

1. Holding a public meeting to allow for comments and input from anyone living within 800 metres of the property or any other person expressing an interest in the application,
2. A sign detailing the nature of the application is required to be posted on the property.
3. City Council makes the decision to approve or refuse the proposed zoning change.

Zoning application decisions can be appealed to the Ontario Municipal Board by the applicant or any person who attended the public meeting and expressed a view or made a written submission with respect to the application. The Zoning Amendment process can take about six months to a year to complete.

For further information on how to apply for a zoning amendment, contact:

The Planning, Design and Development Department at 905-874-2050.

Can I still register an older home with a basement apartment that existed prior to November 16, 1995?

If you are buying a home with a basement apartment that is not legally registered with the City of Brampton, it may still have legal non-conforming status. In order to determine the status of the home, you will need to contact Enforcement and By-Law Services to conduct an investigation. If there is sufficient evidence to prove that the basement apartment existed prior to November 16, 1995, your unit can be added to the City’s Registration List provided you have complied with the requirements under the Building Code and Fire Code and you have clearance from the Electrical Safety Authority. Conversions and upgrades can cost in excess of $15,000. Grants for conversions may be available through the Canada Mortgage and Housing Corporation (CMHC).

If there is insufficient evidence that the basement apartment existed prior to November 16, 1995, the homeowner will be required to dismantle the unit and/or face prosecution.

Where can homebuyers get more information?:

By-Law Enforcement
(905) 458-3424
Building Department http://www.city.brampton.on.ca/zoning/
(905) 874-2090
Fire Inspections http://www.city.brampton.on.ca/fire/prevention.html
(905) 874-2740
Electrical Safety Authority http://www.esainspection.net/
1-877-372-7233
Brampton Real Estate Board http://www.breb.org/
905-791-9913
Landlord and Tenant Board http://www.ltb.gov.on.ca/
(416) 645-8080
Insurance Bureau of Canada http://www.ibc.ca/
(905) 362-2031
CMHC http://www.cmhc-schl.gc.ca/en/co/prfinas/index.cfm
1-800-704-6488

Canadian Association of
Home and Property Inspectors http://www.nca-anc.com/
(613) 839-5344


Where can tenants get more information?:

Fire Inspections http://www.city.brampton.on.ca/fire/prevention.html
(905) 874-2740
Landlord and Tenant Board http://www.ltb.gov.on.ca/
(416) 645-8080
Insurance Bureau of Canada http://www.ibc.ca/
(905) 362-2031


Enforcement of illegal and unsafe basement apartments

Illegal units:

The Enforcement and By-Law Services Division at the City of Brampton investigates zoning violations regarding basement apartments. Residents who suspect an illegal basement apartment can report their concerns to (905) 458-3424 or by email to enforcementatbrampton.ca. Residents will be required to provide detailed information to support their allegations before an investigation is initiated.

Unsafe Units:

The Brampton Fire Department investigates all fire safety issues. Tenants and homeowners can report fire safety concerns to Fire Prevention at (905) 874-2740 and request a Fire Safety Complaint Inspection. Typical fire safety issues include:

* Inadequate fire separations between dwelling units (i.e., walls, doors etc.)
* Inadequate means of escape
* Absence of and/or defective smoke alarms and carbon monoxide detectors
* Faulty home wiring

Additional Resources

Provincial Legislation

http://www.e-laws.gov.on.ca/index.html

Special note to realtors & homeowners
Real Estate agents are licensed by the province under the Real Estate and Business Brokers Act and hold an obligation to ensure all sale transactions reflect a homebuyer’s awareness of the risks associated with the purchase of a home containing a basement apartment. The public will rely on the realtor for accurate information. Realtors can reduce their own risk, and that of their clients, by telling clients about the rules for basement apartments / secondary suites. If this does not occur, the realtor may be held liable or face punishment. Contact the Brampton Real Estate Board for more information.


-----------------------------------------------------------------
Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/


amit kalia   
Member since: Nov 03
Posts: 434
Location: Mississauga

Post ID: #PID Posted on: 24-01-08 08:27:37

Quote:
Originally posted by tamilkuravan

I understand that it is the Law. But who follows it? How is it (if ever) enforced? What is the statistics of the enforcement officers who enforce this by law?
TK
Sidenote : A True incident witnessed by me.



Below are just a few cases that got publicity. Definitely, there could be many more.

City of Brampton Media Release – Conviction of homeowner

http://www.city.brampton.on.ca/press/07-017.tml

News Article – Brampton Guardian – Apartment Fire / Death 2007

http://www.northpeel.com/brampton/news/article/31736

Toronto Star-Suburban house split up into 18 bedrooms- Owners fined for running illegal rooming housing in Scarborough.

http://www.thestar.com/article/300147


-----------------------------------------------------------------
Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/


Contributors: tamilkuravan(8) Big Vee(4) amit kalia(3) desi_driller(3) Gaulam(2) Vijay(2) Aly Azam(1)



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