Pubdate: Mon, 10 Jan 2011
Source: National Post (Canada)
Copyright: 2011 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU
Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286
Author: Megan O'Toole
Bookmark: http://www.mapinc.org/mjcn.htm (Cannabis - Canada)

FORMER POT HOUSES GROWING PROBLEM FOR HOMEBUYERS

It is a caveat homebuyers in Greater Toronto have become increasingly 
aware of in recent years. Nestled in among modifiers like "builder's 
dream" and "prime location," a short phrase informs potential buyers 
that the property used to house a marijuana grow-up.

Legally, real-estate agents must include this information, but as the 
number of raided grow-ops in the city has climbed, so too has the 
number of listings with the unfortunate caveat that can dramatically 
affect the selling price.

"I don't think anyone in their right mind would pay the same price 
for a house that had been a grow-up as one that hadn't been," noted 
Tsur Somerville, director of the University of British Columbia's 
Centre for Urban Economics and Real Estate.

In fact, the grow-up designation can decrease the selling price of a 
home by 20% to 25%, noted Cathy Innamorato, a real-estate broker with 
Remax whose business is focused in the Markham area.

Former grow-ops are increasingly coming onto the market, Ms. 
Innamorato said, while still more likely "slip through the cracks" -- 
homes that bear clear signs of having housed grow-ops, but that were 
never raided, and consequently, were not officially designated.

"It's a huge problem for the buyers and it's a huge problem for the 
sellers," Ms. Innamorato said.

The stigma of a former grow-up tends to outstrip even that of a home 
where a murder has occurred, experts say, because there are major 
structural issues to take into account. The high levels of humidity 
needed can cause mould, while electrical shortcuts used to generate 
the high levels of power required can make a mess of the home's 
wiring. While some sellers attempt to fix these problems, others list 
the property in "as-is" condition.

"The difference with growops is you actually worry about there being 
some damage to the house rather than sort of bad energy or bad 
vibes," Mr. Somerville said. "There's actually a risk of actual 
physical damage that could be costly to repair."

It can also be difficult to insure a former grow-op. State Farm 
spokesman John Bordignon says when his firm is presented with an 
opportunity to insure a former grow-op, a stringent set of tests is 
required, including a thorough interior and exterior inspection of 
the home, an electrical safety certification and testing to ensure 
mould has been remediated.

"We'd require [those] criteria be met prior to considering coverage," 
Mr. Bordingnon said.

Constable Tony Vella of the Toronto Police Service notes grow-ups are 
highly susceptible to fires, which is the main way authorities become 
aware of their existence. Once that happens, police can seize the 
property as proceeds of crime.

The number of grow-ups -- which can comprise anything from a teenager 
growing a couple of plants in his bedroom to a full-scale, high-yield 
operation -- was "slightly up" in Toronto last year, Const. Vella 
said, though he could not immediately provide specific numbers.

Ms. Innamorato said former grow-ops tend to be much harder to sell, 
typically remaining on the market for longer than an average home. 
She pointed to one former grow-op on McCowan Road that had been 
listed since 2008.

"They do stick around for a long time, most of them," she said.

Potential buyers have also raised concerns about the criminal element 
involved in grow-ops, Ms. Innamorato said -- the fear that owners may 
come back and try to claim appliances in the home, or that drug 
dealers may stop by to collect money owed by previous tenants.

"You wouldn't want to be moving into a house where you'd think 
somebody's going to be banging on the door looking for something," 
Ms. Innamorato said. "That's scary, especially if you have a young family."

Const. Vella urged residents to contact police if they notice any 
signs of a potential growop; for instance, when people are only seen 
popping by on the odd occasion to move something from the property. 
In the wintertime, since growops generate a great deal of heat, there 
is an added indicator, he said: "Everybody's house has snow on it and 
this house does not."
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