How We Navigate Representation with Integrity and Compliance

How We Handle It:

 

1. Identify the Status Early

   During listing or when showing a property, ask the right questions:

    

   • “Is the basement apartment registered with the municipality?”

   • “Can you provide documentation or permits for the second suite?”

    

2. Disclosure is Key

    

   • If you’re listing the property: you must disclose if the basement apartment is not legal or not registered — even if it’s currently tenanted.

   • Use language like:

     “Basement apartment currently tenanted. Seller does not warrant retrofit or legal status.”

    

3. Represent, Don’t Certify

    

   • You are not a building inspector or a by-law officer.

   • Don’t guess or guarantee the legal status — always encourage the buyer to verify zoning and compliance directly with the local municipality.

    

4. Document Everything

    

   • Add notes to your file (email confirmations, MLS remarks, status disclosure, etc.).

   • If the seller is unsure, put that in writing.

    

5. Protecting Buyers

    

   • Advise buyer clients to do their own due diligence.

   • Recommend speaking to a lawyer or the municipality before closing.

    

6. Working with Tenanted Units

    

   • If the basement is rented, understand tenant rights under the Residential Tenancies Act (RTA).

   • Illegal unit or not, a buyer cannot evict a tenant without proper notice or valid reason.

    

Agent Note:

 

We’re not here to pass judgment or enforce the law — but we do need to represent our clients with full transparency and professional care. If we hide or ignore the legal status of a basement apartment, we’re putting our clients — and ourselves — at risk.