Pubdate: Sun, 26 Jun 2016
Source: Province, The (CN BC)
Copyright: 2016 Postmedia Network Inc.
Contact:  http://www.theprovince.com/
Details: http://www.mapinc.org/media/476
Author: Matt Robinson
Page: 22

GROW OP HOMES: FIVE THINGS TO KNOW

As the hot market pushes buyers to look for bargains, banks get more
requests to finance remediated houses

1 What do buyers need to know?

Illegal grow ops can leave a home in serious disrepair. Moisture,
pesticides and fertilizer can soak into structures and bad wiring jobs
can put occupants at immediate risk. But that's a worst-case scenario
and homes used for just a handful of plants or those that have been
fully remediated are regularly deemed safe by local officials. Still,
it doesn't mean you're going to have an easy time finding someone to
loan you the money to buy one.

2 Why don't banks like to finance former grow ops?

Lenders shy away from even the most carefully remediated homes because
of the risk of future problems like mould. If that shows up, their
investment - and yours - is at risk. Bruce Schouten, chief risk
officer at Coast Capital Savings, said lenders who do finance grow ops
can face a risk to their reputation. That said, some will still lend -
just for a higher rate than normal.

3 Is the stigma around former grow ops well-founded?

Consider this: A home with a leaky roof can take on a lot of moisture
that could turn into mould. But put on a new roof and the problem is
erased. That was the analogy used by Harry Kullman, a Kelowna-based
realtor who has experience listing a remediated grow operation.
Despite that, he said realtors should be up front about a home's history.

4 How many remediated grow ops are out there?

It's hard to say. The City of Vancouver has issued more than 2,450
reoccupancy permits for former grow ops since 2000. The city has seen
steadily fewer of them starting around 2002 - one year after (now
defunct) federal regulations permitted medical marijuana users to grow
their own supply or designate someone else to grow it for them. Each
jurisdiction has its own rules on remediation.

5 How often do former grow ops come onto the market?

In recent weeks, there has tended to be a small crop of remediated
grow ops on the market at any given time. Among new listings this week
was a $788,000 five-bedroom home at 16849 60th Ave. in Surrey. Nearby
four-bedroom homes were listed for more than $800,000, and the sellers
of a five-bedroom house in the neighbourhood listed it at $1 million.
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MAP posted-by: Matt