So you’re looking to buy a home in Brampton with a separate basement apartment to lease out for extra income, but you have no clues as to the legalities of the basement. What exactly does “Vendor does not warrant retrofit status” mean? What issues do you need to be concerned about when purchasing a home with a basement apartment? Read on, and you shall find out!

What exactly defines a basement apartment?

A basement apartment is a self-contained apartment consisting of a room or rooms in a singe or semi-detached house and can be located in any part of the house, not necessarily in the basement. They have also been called granny flats, nanny suites, accessory apartments and second suites. In the City’s bylaw, they are referred to as a “residential unit”.

A self-contained apartment shall have a separate means of entry (which may be through another unit) a kitchen (or cooking area) and bathroom facilities. A self-contained apartment may be as small as a single room that contains all of the features listed. However, if you rent a room in a house or a flat with a shared entrance, kitchen and bathroom facilities, this bylaw does not apply to you.

Are basement apartments legal in Brampton?

If you purchase a home in Brampton and the basement apartment was built after November 16, 1995, it is illegal. The only legal basement apartments in Brampton had to have been built prior to that date, and have had to been registered with the city before January 31, 2006 and/or have legal non-conforming status. A single or semidetached registered home can only have one basement apartment. Homes that have been subdivided into more than two units are strictly prohibited unless the property has been specifically zoned to permit multiple units. It is extremely rare to find a house that has been zoned as a triplex!

What should I be watching out for when I am looking to buy a home with a basement apartment?

Lawyers or real estate agents such as myself can confirm the status of a basement apartment with the city in order to provide you with the right information. Real Estate Agents are bound by code of conduct guidelines and must fully and fairly disclose all information about a property for sale. Homes with doubtful legal status are typically listed with the caution “Vendor does not warrant retrofit status”, and you may have to seek further legal advice before proceeding with the purchase of a home.

What are the risks of an illegal basement apartment?

* Increased Liability – The onus is on a homeowner to meet established standards for a second suite. If anything should happen, such as a fire, the homeowner would be held liable due to failure to meet requirements.

* Loss of Insurance Coverage – Having a rental unit in your home is a material change to your home. Non-disclosure of this change of use may in fact make your coverage null and void.

* Limited recover of damage – An insurance policy is not responsible for rebuilding costs related to meeting current established standards. Your insurance company is only required to cover the costs of fixing your home back to the state that existed at the time your policy was made prior to any damage.

* Prosecution – If you do not meet City codes it means that you are breaking the law. You run the risk of being charged and can face fines with a maximum penalty of $50,000 and/or a year of imprisonment on each count.

* Financing – Income from an unauthorized basement apartment is generally not considered when qualifying for a mortgage loan.

* Tenants – You are a landlord. You are obliged to maintain your basement apartment in good operating order and you must follow all fire safety laws. Tenants may apply for rent reduction where the unit fails to meet the prescribed municipal health, safety, maintenance and property standards.

* Tenant Insurance – Your homeowner’s policy will not cover property owned by a tenant.

Can I legally convert vacant space in my home into a basement apartment?

NO! The City’s zoning by-law does not permit new basement apartments. If the basement apartment did not exist in your home prior to November 16, 1995, a home in Brampton cannot be legally converted.

Furthermore, any home built after 1995 can never have an existing legal basement apartment. In order to permit a new basement apartment, the Zoning By-law would have to be changed. Changing the Zoning By-law requires the submission of a Zoning Amendment application and fee ($7759.00) to the City’s Planning, Design and Development Department.

For more information on basement apartments in Brampton, you can visit the City Of Brampton’s website.

From: Lang Vuong
Kingsway Real Estate Brokerage

Brampton Basement Apartment

This is probably the most popular topic of conversation on my blog, as well as the most asked about topic in my emails. Hopefully the information I provide below will be clear, concise, and answer all your questions as thoroughly as possible. If you haven’t already done so, please read my previous article on basement apartments in Brampton.

I’m confused. What is the definition of a basement apartment according to the city?

A basement apartment is a self-contained apartment consisting of a room or rooms in a single or semi-detached house. A basement apartment may be in any part of the house, not necessarily in the basement. Some people call these apartments granny flats, nanny suites, accessory apartments and second suites. The City’s bylaw refers to them as “residential units.”

A self-contained apartment must have a separate means of entry (which may be through another unit), a kitchen (or cooking area) and bathroom facilities. A self-contained apartment may be as small as a single room that contains all of these features.

–> However, if you rent a room in a house or a flat with a shared entrance, kitchen and bathroom facilities, this bylaw does not apply to you. <–

Who enforces these by-laws? Is this Ontario-wide or does this only apply to Brampton?

In 1994, the Government of Ontario proclaimed Bill 120, which permitted second units in houses. The bill permitted the units, despite Brampton’s municipal zoning bylaws, if the units met health and fire safety standards.

On November 16, 1995, the Government of Ontario introduced Bill 20, restoring to municipalities the right to outlaw basement apartments. Bill 20 became effective on May 22, 1996.

Bill 20 prohibits new apartments in houses after May 22, 1996. The bill allowed homeowners to keep apartments in houses that tenants or other residents occupied on or before November 16, 1995 – if they conform to the requirements of the original Bill 20. It also allowed apartments that homeowners built between November 16, 1995 and May 22, 1996 if the City issued a building permit.

So if my house has a basement apartment, how do I know if it’s legal or not?

If you purchase a home in Brampton and the basement apartment was built after November 16, 1995, it is illegal. The only legal basement apartments in Brampton had to have been built prior to that date, and have had to been registered with the city before January 31, 2006 and/or have legal non-conforming status.

A single or semi-detached registered home can only have one basement apartment. Homes that have been subdivided into more than two units are strictly prohibited unless the property has been specifically zoned to permit multiple units. It is extremely rare to find a house that has been zoned as a triplex!

Can I legally convert vacant space in my home into a basement apartment?

NO! The City Of Brampton states:

More than one dwelling unit is not permitted and is not safe. The property must be returned to a One Dwelling Unit house regardless of who is occupying the additional dwelling unit.

Definition of dwelling unit as per 1994 Ontario Building Code “Dwelling Unit means a suite operated as a housekeeping unit, used or intended to be used as a domicile by one or more persons and usually containing cooking, eating, living, sleeping, and sanitary facilities”.

The property shall be converted back to a one dwelling unit house by completing ALL of the following:

1. All tenants/occupants must be removed from one of the dwelling units, and
2. The locks separating the units shall be removed and replaced with passage sets, and
3. Owners must sign the “One Unit Dwelling Declaration” located at the back of this package and provide to the Fire Prevention Officer, and
4. Ontario Fire Code Division B, 2.13.2.1. requires operating smoke alarms on every storey located outside of the sleeping area, and
5. City of Brampton By-Law 275-98 as amended requires that a Carbon Monoxide alarm (CO alarm) is installed outside of the sleeping area in a house that contains a fuel-fired appliance (eg. gas / oil furnace, fireplace).

A Fire Prevention Officer will attend your residence after 90 days to inspect the entire property and the expectation is that the building is fully compliant with all codes and by-laws. The expectation is that the building will be converted back to a One Dwelling Unit house and if not, charges will be filed.

Failure to comply with all applicable codes and by-laws will result in prosecution.

Can I still register an older home that had a basement apartment before November 16, 1995?

A home with a basement apartment that a previous owner had not registered with the City of Brampton may still have legal non-conforming status. Contact Enforcement and By-Law Services to determine whether the home has this status.

If City staff investigate the situation and discover enough evidence to prove that the home had a basement apartment before November 16, 1995, the staff can add your unit to the City’s Registration List — if you have complied with the requirements under the Building Code and Fire Code and you have clearance from the Electrical Safety Authority. Converting and upgrading the apartment to meet standards may cost you more than $15,000. However, you may also qualify for a grants for converting your property through the Canada Mortgage and Housing Corporation (CMHC).

If staff do not find enough evidence that the home had a basement apartment before November 16, 1995, the City will require the homeowner to dismantle the unit or face prosecution.

What should I be watching out for when I am looking to buy a home with a basement apartment?

Lawyers or real estate agents such as myself can confirm the status of a basement apartment with the city in order to provide you with the right information.

Real Estate Agents are bound by code of conduct guidelines and must fully and fairly disclose all information about a property for sale. Homes with doubtful legal status are typically listed with the caution “Vendor does not warrant retrofit status”, and you may have to seek further legal advice before proceeding with the purchase of a home.

From: Lang Vuong
Kingsway Real Estate Brokerage

If you’re thinking of buying a home in Brampton soon and are worried about coming up with a down payment, there is still a zero down mortgage program available for you to explore. Essentially, what you would be getting is a cash back from the lender that you would apply as your down payment.

This mortgage program is a lifesaver for those who want to take advantage of the low interest rates and brisk real estate market in Brampton, but don’t have enough cash in the bank as a down payment. The interest rate will not be as low as a regular mortgage with 5% down, but it does get home buyers into a position where they can own their own home at an affordable monthly mortgage payment.

Here are some quick details:

* A minimum of 650 credit score is required
* Maximum cash back from this program is $25,000
* Amortization is 35 years
* Mortgage is calculated on a 5 year at the posted rate (currently 5.39%)

If you’re currently renting and am considering owning a home, but don’t have the cash for a down payment, this program may be for you. Don’t let this strong Brampton real estate market pass you by!

From: Lang Vuong
Kingsway Real Estate Brokerage