FORMER POT HOUSES GROWING PROBLEM FOR HOMEBUYERS

It is a caveat homebuyers in Greater Toronto have become increasingly
aware of in recent years. Nestled in among modifiers like "builder's
dream" and "prime location," a short phrase informs potential buyers
that the property used to house a marijuana grow-up.

Legally, real-estate agents must include this information, but as the
number of raided grow-ops in the city has climbed, so too has the
number of listings with the unfortunate caveat that can dramatically
affect the selling price.

"I don't think anyone in their right mind would pay the same price
for a house that had been a grow-up as one that hadn't been," noted
Tsur Somerville, director of the University of British Columbia's
Centre for Urban Economics and Real Estate.

In fact, the grow-up designation can decrease the selling price of a
home by 20% to 25%, noted Cathy Innamorato, a real-estate broker with
Remax whose business is focused in the Markham area.

Former grow-ops are increasingly coming onto the market, Ms.
Innamorato said, while still more likely "slip through the cracks" --
homes that bear clear signs of having housed grow-ops, but that were
never raided, and consequently, were not officially designated.

"It's a huge problem for the buyers and it's a huge problem for the
sellers," Ms. Innamorato said.

The stigma of a former grow-up tends to outstrip even that of a home
where a murder has occurred, experts say, because there are major
structural issues to take into account. The high levels of humidity
needed can cause mould, while electrical shortcuts used to generate
the high levels of power required can make a mess of the home's
wiring. While some sellers attempt to fix these problems, others list
the property in "as-is" condition.

"The difference with growops is you actually worry about there being
some damage to the house rather than sort of bad energy or bad
vibes," Mr. Somerville said. "There's actually a risk of actual
physical damage that could be costly to repair."

It can also be difficult to insure a former grow-op. State Farm
spokesman John Bordignon says when his firm is presented with an
opportunity to insure a former grow-op, a stringent set of tests is
required, including a thorough interior and exterior inspection of
the home, an electrical safety certification and testing to ensure
mould has been remediated.

"We'd require [those] criteria be met prior to considering coverage,"
Mr. Bordingnon said.

Constable Tony Vella of the Toronto Police Service notes grow-ups are
highly susceptible to fires, which is the main way authorities become
aware of their existence. Once that happens, police can seize the
property as proceeds of crime.

The number of grow-ups -- which can comprise anything from a teenager
growing a couple of plants in his bedroom to a full-scale, high-yield
operation -- was "slightly up" in Toronto last year, Const. Vella
said, though he could not immediately provide specific numbers.

Ms. Innamorato said former grow-ops tend to be much harder to sell,
typically remaining on the market for longer than an average home.
She pointed to one former grow-op on McCowan Road that had been
listed since 2008.

"They do stick around for a long time, most of them," she said.

Potential buyers have also raised concerns about the criminal element
involved in grow-ops, Ms. Innamorato said -- the fear that owners may
come back and try to claim appliances in the home, or that drug
dealers may stop by to collect money owed by previous tenants.

"You wouldn't want to be moving into a house where you'd think
somebody's going to be banging on the door looking for something,"
Ms. Innamorato said. "That's scary, especially if you have a young family."

Const. Vella urged residents to contact police if they notice any
signs of a potential growop; for instance, when people are only seen
popping by on the odd occasion to move something from the property.
In the wintertime, since growops generate a great deal of heat, there
is an added indicator, he said: "Everybody's house has snow on it and
this house does not."