What you should know before it becomes law October 17th, and how it can affect your real estate.
Cannabis Act Federal Bill C-45 and Provincial Bill 174
Proposed Legislation in Ontario:
- Adults 19 years of age and older will be able to possess 30 grams of cannabis, the equivalent to 70 marijuana cigarettes
- Permits up to 4 cannabis plants per residence
- Will allow for smoking in some public areas
- Permits retail sale of cannabis in April 2019 within municipalities that op-in.
Now that cannabis use is becoming legal there are few potential issues people should be aware of as we still don't know exactly how this will all play out. Sure the smoke will have an impact on your property such as cigarette smoke, however, what you may not know about is the damage caused on a home from plants that are grown indoors. Next week the law will allow each household to grow a total of four plants. That's four per residence, if you live in a triplex that's a total of twelve plants in one house!
The humidity and electricity required to grow these plants indoors can cause extensive damage to a house if handled incorrectly, including mold. This risk is causing some worry for landlords who will now have to concern themselves with tenants who could possibly be causing a lot of damage to their property. Lease agreements will have to include clauses that outline the potential risks and limitations. But ultimately, this will now be another risk to be aware of when screening new tenants.
Homeowners should also be careful if your'e planning to grow cannabis indoors, as this will need to be disclosed to home insurance companies, who will likely be increasing their premiums. Steps will have to be taken to ensure the safety of the home and to avoid possible damage. When you plan to sell your house, you can be sure that buyers and home inspectors will be extra diligent to look out for signs of cannabis, and this may have a negative impact on value. It could also mean that as a seller you may be responsible to pay for any repairs to a house you sold due to mold damage caused by the plants you grew.
Keep some of these points in mind to protect yourself and your real estate as this law comes into effect. Please contact me if you have any questions.