🌿 Getting to Know Cannabis Grow Operations: Essential Information for REALTORS® 🌿
The legalization of cannabis in Canada has introduced new challenges and opportunities within the real estate sector. As a REALTOR®, it's vital to grasp the impact of cannabis grow operations (CGOs) on properties and your obligations in handling these situations. Let's delve into the basics of CGOs, their associated risks, and your legal obligations.
📜 Cannabis Legalization in Canada 📜
Since October 17, 2018, adults in Canada have been legally permitted to cultivate up to four cannabis plants at home for personal use. For individuals with medical requirements, Health Canada issues registration certificates that allow for more plants. However, commercial cannabis cultivation necessitates a stringent license from Health Canada.
🌱 What Are Cannabis Grow Operations? 🌱
A cannabis grow operation (CGO) refers to any location dedicated to the cultivation of cannabis plants, whether legal or illegal. Illegal CGOs pose significant challenges due to the potential for extensive property damage and health and safety risks. These operations can be concealed in various types of properties, ranging from urban apartments to rural barns.
⚠️ The Dangers and Hazards of CGOs ⚠️
Cannabis grow operations can transform a property into a hazardous environment. Here are some critical dangers to be aware of:
🌧️ Humidity Problems: The high humidity required for cannabis growth can lead to the development of mold, fungus, and damage to the structure.
🏠 Structural Alterations: Modifications to the building's ventilation and heating systems can compromise the structural stability of the property.
☠️ Chemical Risks: The use of fertilizers and pesticides can create toxic conditions.
⚡️ Electrical Dangers: Unauthorized electrical work and the high demand for electricity can increase the risk of fires.
💥 The Threat of Explosions: The chemicals used in the extraction of cannabis can be highly volatile.
🕵️️ Identifying a CGO 🕵️️
As a REALTOR®, it's important to be vigilant for signs of CGOs. Look out for indications such as blacked-out windows, condensation, unusual wiring, and a smell reminiscent of skunk. Inside, be on the lookout for changes in ductwork, electrical modifications, visible mold, and fresh paint in unexpected areas.
⚖️ Your Legal and Ethical Duties ⚖️
You are obligated to inform potential buyers of any known issues related to CGOs. This involves:
📝 Disclosure: Both you and the seller must reveal if a property has been used for a CGO, especially if there are hidden defects or if the buyer specifically inquires about it.
🛡️ Safeguarding Buyers: As the buyer's agent, it's important to inquire about the history of CGOs and recommend comprehensive inspections.
⚔️ Dual Agency: If you represent both the buyer and the seller, it's essential to disclose all pertinent information to both parties.
💸 The Expense of Remediation 💸
Repairing a property that has been used as a CGO can be costly. This often requires extensive work to eliminate mold and restore the building's structural integrity. Ensure that remediation is carried out by professionals and adheres to local regulations.
💼 Advice for Landlords and Property Managers 💼
To prevent the establishment of illegal CGOs, it's crucial to conduct thorough tenant screenings, perform regular property inspections, and have detailed rental agreements. Building positive relationships with neighbors can also aid in staying informed about any suspicious activities.
🌟 Conclusion 🌟
In conclusion, understanding cannabis grow operations is essential for every REALTOR®. By familiarizing yourself with the basics, risks, and legal obligations, you can navigate the real estate market more effectively and ensure the safety and well-being of your clients.