Grow Houses or grow operations (grow ops) are terms commonly used to describe properties used to illegally grow marijuana. While residential homes are most commonly used, grow ops can also be found in commercial/industrial facilities as well as high-rise residential buildings. There are also outdoor marijuana farm operations.
Once the property is vacated, either because the police have arrested the operators or they have moved on, the house is often made available for sale. The potential problems associated with selling a former grow house include structural deficiencies due to the alterations, and fire and health hazards as a result of the fertilizers chemicals used to grow the plants.
Operation
Grow houses are typically found in larger residential homes (i.e. 2,200 square feet or more) with unfinished basements. However, grow operations can also exist in smaller areas, such as garages or in much larger commercial buildings.
Approximately 3,300 illegal grow operations were shut down in Ontario between January 2000 to June 2003; police estimate that there were 11,000 in active operation during that period.
Equipment and seedling plants are usually brought in through the garage to a hydroponic lab set up in the basement. In a 2,200 square foot home, a basement can house approximately 400 plants which can reach maturity in about three months. To mature this quickly, the plants need lots of heat, water, fertilizer and humidity, requiring substantial amounts of electricity. Operators have sophisticated methods of bypassing existing meters and tapping into hydro, gas and water lines, such as drilling through the foundation to tap into the hydro line before the meter. They usually cut holes in the floors, ceilings and roof to vent out the enormous amount of moisture created by the growing of these plants.
Grow House Red Flags
Grow houses usually require extensive cleanup and repair before they can be lived in again: it is possible that these needed repairs were either not done at all, or not properly made and the real damage is hidden. Signs you should be aware of that may indicate a former grow op include:
Mould in corners where the walls and ceilings meet
Signs of roof vents
Painted concrete floors in the basement, covered with circular marks (made by plant pots)
Evidence of tampering with the electric meter (damaged or broken seals) or the ground around it
Unusual or modified wiring on the exterior of the house
Brownish stains around the soffit that bleeds down along the siding
Concrete masonry patches, or alterations on the inside of the garage
Patterns of screw holes on the walls
Alteration of fireplaces
Denting on front doors (from police rams)
In addition, a house that has been used for growing marijuana may have some or all of the following characteristics:
Purchased within one year
Alterations such as a wall that was put up and subsequently removed (e.g., walls erected four feet back from the front window and a table with a lamp set into the front portion to give the illusion of a furnished living room)
Holes in the floors or ceilings that have been repaired or patched and repainted
Excessive moisture in the house; attics will have a high moisture content with saturated insulation
Staining on walls and floors from condensation
Altered showers and bathtubs (for watering plants)
Rusting in the furnace and lining of chimneys
The smell of chemicals or fertilizer
Alterations to the hydro line
REALTORS® acting for buyers should investigate whether a property is a former grow house by:
Inquiring of the listing agent or seller as to whether the property has been used as a grow op or for other criminal activities;
Inquiring whether the sellers have knowledge of any defects — latent or patent;
Asking the listing broker for the Seller Property Information Statement (SPIS);
Recommending to the buyers that they get proper inspections;
Making inquires of the local police department;
Ensuring that the agreement of purchase and sale contains a representation and warranty from the sellers that the property has not been used as a grow op or for the manufacture of any illegal substances;
In areas where available, confirming that the property is not listed on a registry of known grow houses (see #Government Initiatives/New Laws section below); and
Using the OREA suggested clauses.
Grow Op Registry Private Member's Bill Introduced
November 25, 2010 -- On November 24, Bill 139, Clandestine Drug Operation Prevention Act was introduced in the Ontario Legislature. If approved, Bill 139 would require municipal inspections, under the Building Code Act, of properties used for clandestine drug operations (including marijuana grow operations) and any orders issued for remediation, would be required to be registered on the title of the property.
The Ontario Real Estate Association is supporting Bill 139 and has issued
a news release .
Bill 139 has NOT yet been approved and is NOT in effect.
TREB and OREA will continue to monitor this issue.
News Release:
November 25, 2010 - Ontario REALTORS® support private members Bill 139, Clandestine Drug Operation Prevention Act, 2010, introduced by MPP Lisa MacLeod to establish a marijuana grow operations and clandestine drug laboratory registry.
“Grow-ops are major problem for homebuyers in the province and we have been urging the Ontario government to establish a registry to protect consumers for almost ten years,” said Dorothy Mason, President. “We urge the government to pass this bill in order to protect homebuyers.”
REALTORS® are obligated by law to disclose to potential homebuyers if a home has been used as a marijuana grow-operation or a drug lab. Ontario REALTORS are hindered by the lack of a central registry which is crucial to protecting homebuyers from the potential health and safety hazards of properties formerly used to manufacturer clandestine drugs.
Bill 139 defines a clandestine drug operation to be an illegal operation where any substance listed in the schedules I through IV in the Controlled Drugs and Substances Act of Canada can be obtained by any method or process.
Clandestine drug operations cause significant damage to homes. For example, physical damage done to the house by excessive moisture leading to mould, chemical contamination, structural alterations and electrical rewiring leading to fire hazards. Often these homes received cosmetic renovations to disguise the fact they were marijuana grow operations and consumer unknowingly purchases these homes. This can lead to loss of insurance for the property and exorbitantly high remediation costs.
The Ontario Real Estate Association represents 49,000 brokers and salespeople who are members of the provinces 42 real estate boards. OREA serves its members through a wide variety of publications, educational programs and special services.
The association provides all real estate licensing courses in Ontario.
OREA was founded in 1922 to organize real estate activities and develop common goals across the province. These goals included promoting higher industry standards, protecting the general public from unscrupulous brokers and salespeople, and preserving private property rights.
LAW ENFORCEMENT AND FORFEITED PROPERTY MANAGEMENT STATUTE LAW AMENDMENT ACT, 2005
New law steps up fight against grow ops.
A new law came into effect in August giving police, municipalities and electricity companies the power to crack down on marijuana grow houses. The Law Enforcement and Forfeited Property Management Statute Law Amendment Act, 2005, “requires a local municipality to ensure that a building is inspected if it is notified by a police force that the building contained a marijuana grow operation.”
City officials will be responsible for inspecting a property that police have identified as a grow house and order repairs if the property is deemed unsafe. Homeowners or landlords will not be allowed to sell or rent out the property until the work is completed.
The law also gives local hydro utilities the authorization to cut hydro to homes where safety and security are deemed an issue, and law enforcement officials have been empowered to seize the proceeds of grow operations for crime prevention and victim compensation. Maximum penalties have also been doubled for fire hazards caused by faulty wiring.
REALTOR® concerns
Identifying or being informed that a home had been used as a marijuana grow operation is a concern for REALTORS® who want to protect their buyers, and themselves. Some communities already make the information available to the public, but there is no coordination across the province. For example, police forces in London and Durham post the addresses of homes formerly used as grow operations on their Web sites. Some Toronto police divisions, such as 42 division, also post grow op information, but only for their jurisdiction.
Central registry
Currently, there is no statutory requirement for property owners to reveal what a home was used for in the past, making it difficult for homebuyers and REALTORS® to protect themselves. But, the McGuinty government also announced it is considering the creation of a province-wide registry for homes that have been implicated in the production of marijuana. A ten-member expert panel including representatives from the real estate industry, police, the insurance industry, building officials and government met at OREA in August to discuss the proposed registry and how it will work. Further meetings will take place over the next few months.
With a central registry in place, REALTORS® will be able to double-check that a property has never been used as a grow op. In the meantime, be proactive in protecting your buyer and yourself by:
Specifically inquiring of the listing agent or seller as to whether the property has been used as a grow op or for other criminal activities.
Specifically inquiring as to whether the sellers have knowledge of any defects — latent or patent.
Ensuring that the agreement of purchase and sale contains a representation on the part of the sellers that the property has not been used as a grow op or for criminal activities.
Recommending to their buyer that a building inspection be done.
