Law Times

Law Times • January 16, 2012 FOCUS PAGE 13 BY KENNETH JACKSON For Law Times W hen a Toronto man decided to buy a house, he did so knowing it had been the site of a marijuana grow operation. He was getting it at a dis- count. However, he didn't ac- count for the possibility of the men who operated it coming back for what they had leſt at the house. It wasn't marijuana plants that they wanted back. They had been removed prior to the purchase, but behind one wall was cash. The new owner had torn down every wall to renovate the home except one because he thought it was a load-bearing wall. One day, he came home to find three men inside. When he gave chase, they darted out the back doors carrying the cash. "The poor guy came home and he sees these guys literally running out the back exit," says Toronto real estate lawyer Lisa Laredo, who represented the client about a year ago when he purchased the home. "The sliding doors are at the back of the house. He starts chasing them and he noticed they made a huge hole in the only wall he didn't break down. It was filled with money." He never caught them, but perhaps it was good he didn't. He also found guns hidden in the oven and other illicit items in the ducts. The case provides an inter- esting anecdote of what can happen when someone buys a house that had been home to a grow-op. But what if someone who buys a house is never told about the grow-op? According to Lar- edo, real estate agents must dis- close information to potential buyers if the house had been used in an illegal manner. "You have to disclose it. Short an- swer. I know if you know you have to disclose." If the seller doesn't disclose, the new owner can turn around and sue for damages. While it remains controversial among lawyers, Barbara Sukkau, presi- dent of the Ontario Real Estate Association, said in a Septem- ber press release that one of the best ways homebuyers can pro- tect themselves from a grow-op is to ask for a seller property in- formation statement (SPIS). "An information statement like the SPIS will tell potential buyers what the known issues are in the house — both those you can easily see and those that are hidden behind walls or only appear aſter something like a heavy rain or snowstorm," said Sukkau. Houses can suffer signifi- cant structural damage during a Everything you need Together we have all the tools The TitlePLUS® Program works with you to help protect your clients from title risks.1 assist you, through our legal services coverage2 real estate partner! result of an error or omission in your real estate transactions. To ensure your clients get the most comprehensive coverage in one policy, take a look at the TitlePLUS Program, your Bar-related® With the right tools we , by reducing the inconvenience of dealing with a loss as the grow operation. In fact, the av- erage cost to repair a house used as a grow-op is about $41,000, according to the Insurance Bu- reau of Canada. The Ottawa Real Estate Board successfully lobbied the city and police in 2008 to post information about homes on ottawapolice.ca that the cops had busted for grow-ops. They call it the Grow Ops Registry. The houses stay on the site for three months. Police also tell people how to spot a grow-op in their neighbourhoods. There's currently one house on the list. Police arrested two people when they busted a grow-op on Hobart Crescent on Nov. 17. The arrest led to four charges. In the meantime, the RCMP and federal government an- nounced a national strategy last fall to combat marijuana grow-ops. In doing so, the Mounties also launched a new page on their web site to act as a centralized database of residences where the RCMP has dismantled a grow-op or clandestine lab under a search warrant. The addresses will re- main on the site for a year. Currently, there are dozens posted online by province, with the most being in Brit- ish Columbia. The Canadian Real Estate Association endorsed the ef- fort. It's one way for people to find out if the house they want to buy had been a grow- op in case no one tells them. In addition, Laredo notes TitlePlus_LT_Jan19_09 1/12/09 3:11 PM Page 1 that when police bust a grow- op, the government can go aſter the landlord to seize the property under the Civil Remedies Act. "Under the act, the owner has to prove they were a responsible owner. To prove you are a responsible owner, you have to prove one Real estate agents must disclose information about grow-ops, says Lisa Laredo. of three things: that either the owner shows he knew nothing of the grow-op or he advised the law enforcement agency or he took any or other neces- sary steps to stop the unlaw- ful activity." Those steps include shut- ting off hydro or water, says Laredo. For landlords who don't know about a grow-op at their investment property, they can see their money go down the drain. An Ottawa family, for example, attended an RCMP media conference on the issue. They know the side-effects of a grow-op. The City of Ottawa con- demned their rental proper- ty. Aſter demolishing it, they had to pay to rebuild it. Their insurance didn't in- clude damage caused by crime. How were they to know about the 250 plants in the basement and on the main floor of the home? Aſter all, they rented the place out to a middle-aged couple who reportedly looked like perfect tenants. LT PROTECTION AS GOOD AS IT GETS 1-800-410-1013 2 Excluding OwnerEXPRESS® policies and Québec policies. ®TitlePLUS, the TitlePLUS logo, OwnerEXPRESS and LAWPRO are registered trademarks of Lawyers' Professional Indemnity Company. ®BAR-RELATED Mark is a registered Mark of North American Bar Related Title Insurers used by LAWPRO under License. titleplus.ca 1 Please refer to the policy for full details, including actual terms and conditions. The TitlePLUS policy is underwritten by Lawyers' Professional Indemnity Company (LAWPRO®). Contact LAWPRO for brokers in Saskatchewan, Manitoba, Alberta and Québec. www.lawtimesnews.com Grow-ops provide cautionary tales

• Cover
• IP Heavyweights
• Queens Park
• Focus On