A blog cannot deal with all aspects of a subject and is not intended to replace professional advice. It's purpose is to highlight information and identify areas of possible interest. Anyone wishing to discuss this blog or to make any comments or suggestions about this blog is invited to do so by either posting comments or emailing me directly.

 

 
We had predicted this quite some time ago, but it appears the revolution has started.
 
One of our brokerage's clients is in the process of purchasing a former grow-op. And guess what? His insurance company and agent that he has done business with for years, has refused to insure the house that he had planned to purchase.
 
These kind of risky purchases (grow-ops, foreclosures, and bank sales) are just that - RISKY! I'm sure this Buyer client is using a knowledgable and experienced agent that put into the "Offer to Purchase" the condition of being able to find insurance. This is just one of the many conditions that a knowledgable real estate agent will suggest to their clients to have inserted into the Offer to Purchase. Finding out after the sale is FIRM would be a real expensive lesson for someone.
 
If anyone ever questioned the value of an experienced, and fully-trained industry professional to help them purchase or sell a home, this is just one example that shows that...
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Alberta Health Services: Marihuana Grow Operation Repair, Rehabilitation, and Remediation Requirements

Background

Marihuana Grow Operations (MGOs) have been found to operate with little or no regard to the immediate or future safety of the occupants or neighbours. Buildings that have been used as MGOs may contain significant health and safety hazards. Substantial damage and hazardous conditions found in these buildings can include structural problems, electrical tampering, chemical contamination, increased levels of combustion gases, and abundant growth of visible and hidden moulds. An MGO premises is usually subject to an order and a Notice of Health Hazard registration on the land title pertaining to the property.
 
Alberta Health Services (AHS) Environmental Public Health, in partnership with the Alberta Green Teams, local law enforcement, and local Safety Codes Officers, is actively involved in the assessment and remediation of these marihuana grow operations.

Purpose

The purpose...
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A grow op is any property owned or leased by persons in the drug trade who turns the property into a hydroponic operation to grow marijuana plants. A grow op operation could be located in any residential property, which is normally located in the basement. Some grow op operations may also include one property or may include a number of neighbouring properties on the same street and have been known to operate in virtually every province and territory across Canada. Grow op operators are becoming sophisticated where they may have placed interior lights with timers to make it appear that someone lives in the property.

Damages Caused by Grow Op Operations

Marijuana crops require large amounts of water in order for the crops to grow successfully. A number of renovations may need to be completed in order to grow marijuana plants, which includes a ventilation system to handle the excess moisture generated, which may include modifications to the drain system, or venting through the roof. As a result...
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In follow up to my blog post on Grow-Ops, here is a recent news piece on the situation and what the Alberta real estate industry is lobbying the provincial government for.

 

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I had been showing a home in a wonderful community last spring and it just didn't work for the particular buyers I was working with. The layout was really nice, the location really good and the home was vacant and ready for immediate occupancy.

 

Well unfortunately, it has now appeared on the province's grow-op list.

 

Here's a link to the full list of former illegal drug operations (grow-ops and meth labs) that have been busted in the Calgary area. You'll see there are hundreds of homes on the list.
How many others have gone undetected, or undisclosed in a real estate transaction?

 

As a Buyer, know that it is the Seller's responsibility to disclose this information to their agent if it is know to them. The Seller's Agent will most likely disclose this information on the MLS® System (either publicly, privately to other agents, or both). Whether or not the drug operation has been remediated,...
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