Cannabis & Real Estate

Real Estate

With the legalization of cannabis last month, more Canadians are partaking in recreational marijuana than before. Although legal, how will it affect those putting their homes on the market in the near future, and the impact on potential buyers as they walk through your front door?

OREA President David Reid states "Ontario must take steps to protect home owners and prospective home buyers against the health and safety risks associated with former marijuana grow operations". Bill C-45 allows you to grow up to 4 plants per household (not per resident!) While there is a sizeable difference between a large-scale grow-op and growing a handful of plants, there are still a few things to consider before you put your "green thumb" to work. You can chose to grow plants outside or inside, however, if you opt for the latter, here's what you should know:

Mortgage: Before making an offer on a home that is a former grow-up, buyers should always have a discussion with their mortgage lender on how to proceed. If you currently hold a mortgage, prior to growing your own plants, you must check with your lender to ensure that you are not in violation of your mortgage agreement.

Insurance: As we all know, large grow-ops are still illegal, and will continue to be. Many claims submitted for damage from grow-ops are often voided. The most common damages are mould, tampered electrical wires, and potential exposure to any chemicals used in the process of cultivation. Next time you renew or apply for a new policy, your insurance company will ask if you are growing cannabis in your home.

Resale: If you are listing your home in the next bit, try to smoke outside when possible. Some people are very sensitive to odours, and it could be a huge deterrent for the potential buyer of your home! If you do choose to smoke indoors, be sure to air out your home as best you can, and clean your carpets and upholstery often.

While federal regulations are improving to protect home buyers, as a strong Realtor, we will always work with you to ensure your next home is safe for you and your family. Please reach out to us if you have any questions or concerns - we have a strong network of professionals that will help you every step of the way!