Carbon Monoxide Detector Are Now Mandatory in Ontario

A law making carbon monoxide warning devices mandatory in Ontario homes takes effect this Wednesday.

Community Safety and Correctional Services Minister Yasir Naqvi said the odourless, colourless gas kills about 50 Canadians, including 11 Ontarians, every year.

While there will be an emphasis on public education for the next few months, failure to install a carbon monoxide detector carries a fine of $235.

Bill 77 updates the Ontario Fire Code to mandate the use of carbon monoxide warning devices in houses, condos, apartments, hotels and university residences that have a fuel-burning device such as a fireplace, gas stove, water heater or furnace — or if the home is attached to a garage.

The only residences not affected by the new regulation are those that are all electric and have no attached garages.

The devices range in price from $30-$60 and can be plugged in, hard-wired or battery operated, Naqvi said.

The Ontario Building Code has required detectors in residential construction since 2011, but this bill applies to all homes in the province.

Top 6 real estate scams – and how to avoid them

Fraud and investment scams abound at all levels of the real estate market – whether it be a contractor who charges hundreds of dollars for work not done to an “investment agent” who embezzles hundreds of millions – protecting yourself can require a measure of vigilance and legwork, but it can also come down to exercising skepticism and common sense.

1. Title fraud.Although relatively rare, one of the most devastating frauds for property owners is title fraud. This type of fraud starts with identity theft. The scammer will use false documents to pose as the property owner, registers forged documents transferring a property to his or her name, and then gets a new mortgage against the property. After securing a mortgage or line of credit, the criminal takes the cash and leaves the owner on the hook for future payments.

While an identity thief may get a forced discharge of an existing mortgage, it is generally held that fraudsters are more likely to go after homes that are free and clear of mortgages: these have fewer complications and they tend to be held by older people who may be less aware about how to guard against identity theft. Criminal Services Intelligence Canada notes that homeowners who rent out their homes or who have no existing mortgages on high-value properties are more vulnerable to being targeted in title-fraud schemes as a large mortgage can be secured with the property.

Sale of a fraudulently held property may also occur, but it is much rarer as potential buyers are unlikely to consider a purchase without inspecting a property.

“Title insurance” is the best protection against this type of fraud. As well as protecting against title fraud, it also guards a new owner from against existing liens against a property’s title (such as unpaid debts from utilities, mortgages and unpaid property taxes), encroachment issues (a structure on a property needs to be removed because it is on your neighbour’s property) and errors in surveys and public records.

The other key to prevent being a victim is to engage in protection of personal data (see box). Taking precautions can also mitigate against more common types of identity theft –related losses (such as credit card fraud. As well as protecting their own information, investors and homeowners should ensure that trusted parties are taking proper security measures.

Canada’s Office of the Privacy Commissioner of Canada (OPC) launched a probe in 2009 after mortgage brokerages reported 14 data breaches in the space of a few months. Among the OPC’s findings: some brokers stacked files containing personal information on the floor or on desks within accessible offices; brokers lacked shredders capable of securely destroying documents; credit reports were sometimes obtained prior to consent from a client being recorded and there was no ability for clients to opt out of secondary uses of their personal information, such as marketing; there was a lack of training about privacy responsibilities.

In addition to title fraud by strangers, there have been cases where fraud has been perpetrated by spouses and business partners. For instance, one spouse may mortgage a property for their own benefit by using an accomplice to impersonate their spouse. Fraud can also occur through breach of an undertaking, where the lawyer or notary fails to pay off and obtain a discharge of a mortgage, instead absconding with the funds that had been intended to be used to pay an existing mortgage.

2. Foreclosure and home-equity fraud.Criminals and criminal enterprises can take advantage of property owners who find themselves in a cash crunch, being short on funds for liabilities such as mortgage payments or other purposes. Two common scams that exploit a victim’s need for cash are foreclosure fraud and home-equity fraud.

The Financial Consumer Agency of Canada (FCAC) warns that foreclosure fraud occurs when a property owner who is having difficulty making mortgage payments is approached by a criminal offering a loan to cover expenses and consolidate loans, in exchange for upfront fees and an agreement to transfer the property title. However, in contrast to real debt consolidation programs, the FCAC says, the criminal will keep all the payments made by the owner and ignore bills and taxes. The criminal then remortgages the property and absconds with the money, leaving the former property owner without the home but still in debt.

ash-crunched property owners or investors seeking can be vulnerable to other scams or unscrupulous behaviour to tap equity. There is always risk when leveraging properties, but a legitimate bank, broker or private lender should be forthright when explaining risks. However, those looking to borrow on equity should be alert for less scrupulous lenders, such as those who invite owners to embellish their application by exaggerating income, down payment or property assessment value sources in order to secure a larger loan.

CSIC has noted that organized crime groups often pretend they are buying or selling properties that are much larger, newer or more recently renovated than other homes in the area. These properties receive fraudulently inflated values through illicit property flipping from which a large mortgage is obtained. When the criminals deliberately default on the mortgage, financial institutions and end buyers are left with an overvalued mortgage (or worse, former property owners are without holdings, in debt and possibly implicated in the fraud).

Criminal activity can also be in the form of money laundering, a process where dirty money from criminal activity is transformed into “clean” assets. Financial Transactions and Reports Analysis Centre of Canada(FINTRACT), the agency responsible for tracking money laundering, warns that criminal or terrorist groups will purchase big-ticket items such as real estate for laundering purposes. FINTRACT requires that real estate brokers, Realtors, developers and others involved in suspicious transactions (such as large all-cash purchases or “buyer unseen” transactions).

3. Online rental/sale scams.In these scams, rental property is advertised (usually at low costs) on online classified sites like Craigslist or Kijiji. The ads use information and photos describing the property that has been “scraped” from legitimate ads, such as those on the MLS. A scammer will impersonate the landlord, property manager or estate agent and will respond to emails and calls from prospective tenants. The scammer indicates he or she is unable to meet a prospective renter at the property, and instead proposes a meeting off site to exchange keys, sign a tenancy agreement and collect rental deposits. Victims may only learn they’ve been duped when they show up at a property to discover that it is already occupied.

Provincial and regional Realtor and real estate associations have warned members to be alert for this type of fraud, which has been common in major markets, but there is little a property owner can do to prevent image or data scraping. Property owners can search for the addresses of their units on search engines and they can use services like Google Image Search to help discover if a scraped picture from MLS or another online source is being used illicitly. Property owners should also digitally watermark any photos they use in rental ads, including business contact details and website.

While rental scams are common, online classified advertising and social media have also been used for investment scams and property fraud. Things to be alert for in such listings include claims of urgency, such as “must sell now,” promises of high returns or “low-cost/no-cost” financing. These sort of claims are usually too good to be true, and they also can be prevalent in off-line scams.

4. Property investment seminars and courses.Educating yourself about property investment can be essential for success, but prospective investors should be alert and do their research on seminar providers. There are legitimate speakers and seminars that provide beneficial information, others exist primarily to take money from the credulous … and there are some that are in between.

Prospective investors should be cautious when it comes to seminars or courses that offer investor education. The value of the information provided can vary wildly, as can the costs. Some may be free, with sponsorship by a company or association, others will charge money, ranging from nominal amounts to upwards of tens of thousands of dollars. Still, even if someone pays for a course that provides basic information that could be found through a simple Internet search, it does not mean that the seminar was a scam. A rip-off may charge excessive prices but be completely illegal, but a scam typically involves legal wrongdoing, misrepresentation or fraud.

One common type of seminar is designed to hook buyers into “sure-fire” investments that are promoted by the seminar hosts. Potential investors may be invited to these seminars through an ad in a newspaper or magazine, a phone call, an email or other method. These seminars may include a motivational speaker, an “investment expert” or a “self-made millionaire.”

Some seminars may make money by charging attendance fees, selling highly priced reports or books and selling property and investments through high-pressure sales tactics. Real estate investment companies holding the seminars may suggest attendees follow high-risk investment strategies, such as borrowing huge sums of money, to buy into an investment offered by the seminar hosts.

Some companies have been known to fly prospective investors to view real estate developments. This could be a tactic to pressure commitment to a deal without time to obtain independent information or advice. Investors sometimes end up having to pay for their travel and accommodation if no investment is made.

The relatively booming market in Alberta has been a hotspot for these scams, and the Alberta Security Commission has issued a list of “red flags” to look out for when approaching a property investment seminar (see box). The basic advice, be skeptical of claims and do your due diligence before committing any money to an expensive course or investment.

5.Home Improvement scams.As well as being cautious about big investments, property owners should be alert to smaller-level scams. The Canadian Council of Better Business Bureaus listed “rogue door-to-door contractors” as among their top 10 scams of 2013.

These operators may come with unsolicited offers and deals that are too good to be true. Typical approaches include: offers to seal or repave a driveway, or a roofer who can work cheaply using leftover material from a previous job. BBB warns that fraudulent “contractors” will use high pressure sales tactics and offers of a one-time deal to entice consumers.

The BBB advises that property owners take the time to do due diligence. Property owners should get the company, name, address and ensure that all verbal promises are backed by a written contract. A scammer may ask for pay in cash or via a cheque and offer to come back at another time to finish the job. After cash changes hands, the BBB says, “you will probably never see them or your money again.”

Generally, for the hiring of any contractor, it is advisable for a property owner to check references and ensure that the company or person has a reputation for fair dealing and quality work. This can be good sense when dealing with legitimate contractors, ensuring that you are likely to receive such as on-time and on-budget estimates.

“It could never happen to me”Perhaps the biggest mistake people make when it comes to scams is to think “it could never happen to me.” It’s a common perception that investment scams are fly-by-night operations that prey on the gullible and operate in dark, unmonitored corners of the economy. That may be often true, but some of the most outrageous scams have operated openly, under regulatory supervision and have swindled the best and brightest.

Bernard L. Madoff Investment Securities, for instance, ran a Ponzi scheme that was regulated by the U.S. Securities and Exchange Commission and swindled corporate luminaries such as DreamWorks’ CEO Jeffrey Katzenberg, New York property developer Larry Silverstein, director Stephen Spielberg as well as global banks and hedge funds. This was a high-profile entity, watched by regulators (though poorly watched) and many of the investors were highly successful and brilliant people.

Closer to home, in 2011-12 there have been more than 20 Alberta-focused property investment firms that have folded or been shuttered resulting in shareholder losses of up to C$20-billion. Many of these firms advertised openly, were licensed by regulators such as the Alberta Securities Commission (ASC) and they offered RRSP-eligible investments. Dozens of lawsuits have been filed against and shareholder groups have formed to seek compensation. It’s up to the courts and regulators to decide on the finer details of each case: some were high-risk ventures that went bust, while others may have used misleading practices, and the ASC has fined others for outright fraud.

What to do if scammed
Federal and provincial law can provide some recourse to Canadians who are victims of a fraud or scam, although losses are almost never made whole and the recovery process can be long and burdensome. For scams involving out-of-country or overseas investments, the recovery of losses may be impossible… and the perpetrators may not be prosecuted.

From Canadian Real Estate Wealth Magazine, a monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

Renting out your home? The no change of use election might help.

If your home is your principal residence and you’re looking to rent it out, your tax situation would look something like this: When you begin collecting rental income, the use of your property changes.  For tax purposes the property is treated as if it were sold as your principal residence and then purchased again as an investment property.  Since it was originally your principal residence, no taxes will be owning on any appreciation from the time it was purchased (or designated as your principal residence) to the day the use changed.  If you were to leave it as an  investment property, you can deduct the tax on the interest portion of the mortgage.  You can also claim depreciation, known as the capital cost allowance.  On the downside, your rental income is fully taxable.

What if the change is temporary?  Say you know you’re going to be out of town for a year or so, but don’t want to sell your home or deal with the some of the future capital gains that would be incurred by changing the use.  The income tax act addresses this issue in section 45(2).  You can defer the gain for up to 4 years, by writing a letter to the CRA stating what you are doing, siting this part of the income tax act and including it with your tax return.  Here are some of the rules:

-         You need to own the property

-         You must have inhabited it as your principal residence

-         The ‘no change of use election’ is a written letter filed with your tax return, signed by the home owner.  It must be filed the year of the change of use and ever year subsequent.

-         You can elect to ‘not change’ the use for up to 4 years.  If after 4 years, you do not change it back to your principal residence, a deemed disposition will occur at its fair market value and any appreciation from that date going forward will be taxable.

-         You can’t claim the capital cost allowance (deprecation).  To do so voids the election.  You also can’t deduct the interest portion of your mortgage, as you have requested that this not be considered an investment property.

-         If you’ve already begun to rent out your property and want to file the election retroactively, fees will be charged.

-         You must remain a resident of Canada during this period of time.

-         A family can only have one principal residence at any time.  If you own more than one property, only one will qualify as your principal residence during any given period of time.

Subsection 54(1) will let you elect to keep the principal residence status on your home for more than 4 years, if you or your spouse were required to move for work.  For this to take effect, your principal residence has to be a minimum of 40 kms further from your new place of employment than the place to which you re-located.

Please note that this works best if you intend to keep house as your principal residence.  This election doesn’t do away with the gain, rather defers it. Here is a link to the CRA website showing what qualifies as capital cost allowance and how to calculate it for an investment property.

You might also want to read CRA's Changing all your principal residence to a rental or business property

The Foreclosure Process in Ontario

Have you ever held first or second mortgage? Or maybe you considered offering vendor take back on a property you are selling? If that's the case, you should consider what will happen if new owner stops paying.

In Ontario, the foreclosure process is very fast, as the proceedings are typically laid out in the mortgage documents. Power of sale was initially developed in Ontario by lenders who wanted a faster way to dispose of defaulted property and recover debt. As a result, they began to include power of sale as provisions in their mortgages and mortgage contracts . Under this the lender would allow them to dispose of property under the borrower's default and without having to resort to the courts. Power of sale is now part of the current Ontario Mortgages Act.

In the Mortgages Act there are two types of power of sale: Contractual and statutory. The first, contractual power of sale is when the mortgage documents have included power of sale provisions in their mortgage contract. The latter is when the mortgage documents have not included power of sale provisions. Statutory powers of sale are very rare because the lender will commonly have the provisions. However in the case of statutory power of sale the lender can still exercise power of sale as long as the borrower has defaulted for three months or more.

Both types of power of sale are started by the lender giving the defaulter a notice after 15 days of non-payment. The notice is given to all parties having a vested interest in the property. This includes subsequent encumbrances, statutory lien holders, or people who have advised the lender in writing, that they have an interest in the property.

The notice is attached to the Mortgages Act, and is called a Notice of Sale Under Mortgage. It advises of the lender's intention to exercise the power of sale, and includes details of the mortgage, such as:

The date in which the mortgage was made. The parties in the mortgage and the property mortgaged. The amount owing. A warning that if the amount owing is not paid by a specified date, the lender will exercise the sale of the property.

If this is a power of sale that is contractual, the borrower will have 35 days to pay, unless otherwise stated in the mortgage agreement. If this is a power of sale that is statutory, the borrower will have 45 days to make payment. The lender cannot do anything further within this redemption period, but by paying the amounts owing, the borrower can redeem the mortgage and save their home from foreclosure.

If the redemption period has passed without the borrower making the payment then the lender is legally allowed to foreclose on the property. Under power of sale, the bank has the right to sell the property by auction, private contract, or tender. Usually the property is listed with a real estate agent and placed on the market for sale. This is because the bank has noticed that they can get more for the home at the lowest cost to the bank.

Once the property is sold and if there is any surplus, the lender must account to the borrower or borrowers, and other parties with vested interests. In the Mortgage Act it  requires that the proceeds of the sale first be applied to the cost of conducting the sale, then to interest and cost owing under the mortgage, then to principal money owing under the mortgage, next to pay any amounts due to outside parties, and finally to pay tenants' security deposits.

Are you tired of shoveling? Should your tenant do it?

This is the coldest winter with much more snow than we had in the past few years. By now every one is probably tired of shoveling. A common issue among landlords and tenants concerns whether a tenant can or cannot be required by their landlord to shovel snow – from both walkways and driveways – on his/her property. Tenants who lack the funds and/or tools to do so will often look to their landlord, depending on the type of property in which they live.

Traditionally, responsibility for snow-clearing may be determined by the type of property in question. In a single-unit property such as a house or a townhouse, in which only one tenant makes use of the walkways and driveways, he/she assumes [rightfully] the responsibility of clearing them. For a property occupied by several tenants (including houses where basement and main floor are rented by different tenants), however, the landlord is often responsible for the arrangement of professional snow clearing services.

The Ontario Residential Tenancies Act officially governs landlord-and-tenant relationships. Although the law does not specifically address the clearing/shoveling of snow in residential areas, a common view is held that parties may negotiate a particular issue that is not formally addressed by the law. Some property leases do contain clauses which specify who is responsible for clearing snow; when leases are silent on the issue, however, the best option for both landlords and tenants is to negotiate among themselves.

Landlords and tenants can reach a deal whereby the tenant may take snow clearing responsibility, so long as both parties are in full agreement; the Court of Appeal made no objection to this. However you might choose to hire your tenant for snow clearing on separate contract (not lease agreement), it may be upheld for as long as the landlord and tenant agree to its terms. Simultaneously, termination of a snow clearing agreement is not a legitimate basis for the termination of a tenancy.

Requirements For a Basement Apartment Legalization in Most of GTA Municipalities

In 2010, the Ministry of Municipal Affairs and Housing released Building Foundations: Building Futures, Ontario’s Long-Term Affordable Housing Strategy (LTAHS). As part of the strategy, Bill 140: Strong Communities through Affordable Housing Act, 2011 was introduced to Provincial Parliament on November 29, 2010 and received Royal Assent on May 4, 2011.

Read about requirements for a basement apartment legalization in most of GTA municipalities

Town of Ajax 

Legal basement apartments are permitted in Town of Ajax in all residential zones, excluding RM4, RM5, and RM6. To permit an basement apartment  must meet the following requirements:

• Minimum of three off-street parking spaces - Two parking spaces for the principal dwelling unit and one additional parking space for the basement apartment.
• Minimum gross floor area of 25 m² (269 ft²) and the total gross floor area of the accessory apartment is not more than the ground floor area of the dwelling in which it is located.
• Basement apartments used or occupied on/or before Nov 16, 1995 are not required to meet the zoning requirements as Section 76(1) of the Planning Act "grandfathers" these basement apartments, however a building permit is required.
• When the House is less than five years old, the basement apartment is reviewed under Part 9, Division B of the Ontario Building Code, the construction requirements of the Ontario Building Code are more restrictive.
• Typical Building Code requirements are as follows:
• Minimum window areas for light are 10% of the floor area for living/dining rooms, and 5% of the floor area for bedrooms 45 minute fire separation
• Separate heating systems
• Hard-wired, interconnected smoke alarms located within each dwelling unit and all shared areas
• Carbon monoxide detectors, within each dwelling unit adjacent to each sleeping area

Town of Aurora

• Only one unit is permitted to have a home occupation.
• Basement apartments are not permitted in buildings located within the flooding and erosion hazard limits of all watercourses.
• Basement apartment registration fee: $150 and $75 if additional inspections are required.

Town of Bradford West Gwillimbury 

• Permitted in a detached home, semi-detached home or place of worship, and shall be located entirely within the same main building
• One basement apartment per lot
• No more than one entrance to a house is contained within the front facade and the entrance to the basement apartment must not be located within a private garage
• Minimum size to be 38 m² (409 ft²) and the maximum size to be 45% of the gross floor area of the principal building
• One additional parking space per unit
• If located in an area serviced by private servicing, the lot must be of an adequate size and the private waste disposal system must be sized to accommodate the basement apartment. Furthermore, if there is a private water supply, this water supply shall be adequate to accommodate the basement apartment. Approval is required from The Region of York or appropriate approval agencies for the provision of adequate water supply and sewage facilities.

Registration fee for basement apartment is $1,000

City of Brampton will approve legal basement apartments very soon

Brampton’s Official Plan permits basement apartment through a rezoning process. Only basement apartments that were built before November 16, 1995 and were registered with the City of Brampton before January 31, 2006 are considered legal.

About 3,000 homes in Brampton have legal basement apartments that homeowners built after the Government proclaimed Bill 120. For these units to be legal, the owners had to have built them before November 16, 1995 and the owners had to have registered them with the City of Brampton before January 31, 2006 or they had to have legal non-conforming status.

The City of Brampton strictly prohibits homes that owners have subdivided their houses into more than two units, unless the City has specifically zoned the property to permit multiple dwelling units. The City of Brampton has zoned only very few houses as triplexes.

All legal registered basement apartments in Brampton had to comply with the Building Code and Fire Code when the City approved them. If the owner afterwards modified the home or added more units, the owner would have had to get a building permit and arrange for City staff to inspect the property before construction could begin.

The current zoning of City of Brampton with an estimated 30,000 illegal basement apartments, does not permit new basement apartments. According to the current zoning by-law If you did not have a basement apartment in your home before November 16, 1995, you cannot add one in Brampton.

Currently you have to request the City of Brampton  to change the zoning bylaw before it can permit a new basement apartment. Requesting  the City of Brampton to change the zoning bylaw requires you to submit a zoning bylaw amendment application and a fee of $7,759 to the City’s Planning, Design and Development Department. The staff of the department will process your application and recommend whether City Council 

should approve your application to change the zoning bylaw. The rezoning process includes:

• City staff holding a public meeting to allow anyone living within 800 meters of your property line -- or any other person interested in your application -- to comment.
• You post a sign on the property, detailing the nature of your application.
• City Council decides whether to approve or refuse to change the zoning.
• You or anyone who attended the public meeting, expressed a view or made a written submission can appeal City Council’s decision on your zoning application to the Ontario Municipal Board. The zoning amendment process can take about six months to a year to complete. For further information on how to apply for a zoning amendment, contact the Planning, Design and Development Department at 905-874-2090.

Basement apartments in Brampton will continue to require a rezoning application until policies and zoning by-law provisions to permit them are in place as per Bill 140. In response to direction in Bill 140 for municipalities to permit second units, City of Brampton is required to implement policies in the Official Plan and performance standards in the Zoning By-law. City of Brampton will modify their by-law to further accommodate Bill 140 and changes to the Planning Act.

Following  the release of the Province’s Long-Term Affordable Housing Strategy, Planning staff provided a Status Report to Planning, Design and Development Committee on April 4, 2011, the City staff was directed to propose a course of action for reviewing the City’s Official Plan and Zoning By-law in order to achieve conformity with the new requirements of the Planning Act. A second Status Report was presented at the November 21, 2011 Planning, Design and Development Committee meeting, outlining how the City staff plans to implement the legislation through a policy, by-law and licensing review. The report recommended that a Technical Advisory Committee be established to oversee the policy review. An inter-departmental team has been created and includes staff from the Chief Administrator's Office, Planning, Building, By-law 

Enforcement and Fire & Emergency Services. A Recommendation Report was presented to Committee of Council meeting of May 16, 2012, seeking direction to proceed with the Open Houses (public consultation sessions) across the City. Five public consultation sessions were held during the month of June 2012 to receive input on the Second Units Policy Review. The presentations are available in English, Punjabi and 

Hindi.  Following these sessions, a Public Consultation Summary Report was prepared by Lura Consulting. Two additional Open Houses (public consultation sessions) were held in May 2013 and June 2013 to provide additional opportunity to comment on the City’s proposed approach for permitting Second Units in Brampton.  A second Recommendation Report was presented to Committee of Council Meeting of June 12, 2013 to present the results of the Open Houses and a refined approach.  A statutory Public Meeting was held on October 7, 2013 to provide the public an opportunity to comment on the City’s draft Official Plan Amendment and draft Zoning By-law Amendment for permitting second units.

For more information on the City’s policy review for basement apartment please contact City of Brampton's Policy Planner, Land Use Policy Daniella Balasal, by phone 905-874-2061;   via  fax 905-874-2099;    by email    daniella.balasal@brampton.ca  

City of Burlington - Requirements to legalize basement apartment        

• Allowed only in detached homes          
• Minimum Basement Apartment floor Area – 42 m² (452 ft²)
• Maximum Basement Apartment floor Area – 30% of the total floor area of the house
• Minimum frontage of the Lot 15 m (50 ft)
• Minimum rear yard of the Lot - 135 m² (1,453 ft²)
• One parking space per basement unit (two parking spaces are required in some instances)
• Driveway maximum width– 7.35 m (24 ft) on 15 m (50 ft) lots
• Maximum hard surface – 50%
• No parking in rear yard
• Separate exterior entrance required but prohibited on front elevation

The City of Cambridge - Requirements to approve a legal basement apartment

The City of Cambridge Draft Official Plan – Public Consultation Draft June 2011 2.8.2.8 Residential Lands, Secondary Residential Unit The City will encourage the establishment of a secondary residential unit within or attached to the existing residential buildings in all zones where residential uses are permitted without amendment to the City’s Zoning By-law. Secondary residential units must be in accordance with the 

following criteria:

• appropriate parking arrangement can be accommodated on the property;
• no separate access to a municipal road is required;
• the secondary residential unit is compatible with neighbouring residential properties and the surrounding residential neighbourhood;
• adequate potable water and wastewater treatment is available to accommodate the secondary residential unit;
• the secondary residential unit is subordinate in scale and function to the main dwelling unit; and
• compliance with the City’s minimum standards of maintenance and occupancy, and other applicable legislation.

City of Guelph - By-law requirements to legalize a basement apartment

• Permitted within a single-detached or semi-detached houses
• One additional off-street parking space required - must have a double driveway. To avoid street accessibility issues, requiring two parking 
• spaces to be accessible at all times provides the opportunity for one car from each unit to have
• direct access to the roadway.
• Maximum size to be 80 m² (860 ft²) and not more than 45% of the principal dwelling’s total floor area
• Maximum of two bedrooms
• External appearance of the front facade of the house must be preserved
• Must preserve front facade
• Maintain single entry (i.e. rear yards not to be divided)

Basement Apartment Registration Fee: $100 - But 5-year period without fee to encourage existing units to be legalized

Town of Georgina - Requirements to legalize a basement apartment

• Permitted within a single family home, semi-detached home or townhouse
• One basement apartment permitted per lot
• Only one entrance to a house is permitted on the front facade
• Four parking spaces are required
• Not permitted within any house serviced by a private septic system which is located within 100 m of the Lake Simcoe shoreline or any permanent stream
• Not permitted in lands affected by flooding, erosion or located within hazardous lands identified by the Lake Simcoe Region Conservation 
• Authority, unless a permit is issued by the Conservation Authority

City of Hamilton allows to legalize basement apartments

• Ward specific - Allowed singles and semi-detached homes, varies by ward
• Can be appropriately serviced
• Minimum two on-site parking spaces must be provided
• No alteration to external appearance
• Must preserve streetscape character
• No impact on surrounding neighbourhood

Kitchener now allows legal basement apartments

Kitchener already allows for basement apartments in most areas of the city

City of Markham - Legal Basement Apartment Requirements  

• Permitted within any single or semi-detached houses
  
• No additional parking space required
  
• Must be secondary to primary dwelling
  
• No more than one basement apartment per lot
  
• Maximum basement apartment floor area not to exceed 45% of floor area of primary unit (as existed before basement apartment)
  
• Minimum basement apartment floor area 35 m² (376 ft²)
  
• Maximum driveway width is equal or greater of
  
• Garage Door width plus 2 m provided in the case of a lot with a lot frontage less than 10.1 m (33 ft), a minimum of 25% soft landscaping is 
  provided in the front or exterior yard in which the driveway is located and in the case of a lot with lot frontage 10.1 m (33 ft)or greater, a 
  minimum of 40% soft landscaping is provided in the front or exterior side yard in which the driveway is located or up to 6.1 m (20 ft), 
  provided a minimum of 40% soft landscaping is provided in the front or exterior side yard in which the driveway is located.
• Subject to property standards
  
• Not be conspicuous from the street or change appearance of dwelling
  
• No entrance through garage door
  
• Initial inspection by Fire Department $300. Basement Apartment Registration $150
  
• Inspection and Registration every 3 years
  

Town of Midland

• Permitted within a single-detached dwelling
• One basement apartment per single-detached house
• The external appearance of the front facade of the single-detached house or any other facade facing a street on which the lot has frontage shall 
• be preserved
• Minimum floor area of 35 m² (376 ft²) and shall not exceed 45% of the total floor area of the single-detached house or a maximum of 80 m² (861 
• ft²) in floor area
• Two parking spaces required (one for each dwelling unit)
• Basement apartment must be registered with Town of Midland every 3 years
• Building permit and inspection fees for existing units waived for a period of 1-year

.

Town of Milton - Requirements to allow legal basement apartments in Milton

Currently basement apartments in Town of Milton are permitted as per the Zoning By-law 144-2003 section 4.1.1.3 in a single detached houses only, provided that:

• Only one basement apartment unit shall be permitted per lot and shall be located within the main house;
• A minimum of one parking space per basement apartment unit is provided;
• The house must be on full municipal water and waste water services; and,
• The basement apartment shall not exceed a maximum size of the 65 m² (700 ft²)

Town of Milton will modify their by-law to further accommodate Bill 140 and changes to the Planning Act. Town of Milton was also designated an Urban Growth Centre by the Province of Ontario's Places to Grow Plan with which requires Town of Milton to "Intensify" population within a defined built boundary.  

City of Mississauga - Requirements to permit legal basement apartments in Mississauga

Mississauga City Council approved a plan to permit second units on July 3, 2013. The plan includes official plan policies, zoning regulations and licensing requirements. It will be in full force in January 2014. Legal second units must have a City of Mississauga licence.

• To be allowed in city wide - detached, semi-detached and townhouse (maximum one basement apartment per house)
• Minimum setback of 1.2 m for new entrances
• Basement apartment cannot change existing use of dwelling
• Minimum gross floor area of a basement apartment shall be 35m²  (377 ft²t)
• Basement apartment shall not occupy more than 50% of the gross floor area residential of the dwelling within which it is located
• A new pedestrian entrance facing a street or a private road or to facilitate a second unit, shall not be permitted;
• One on-site parking space for basement apartment in addition to required parking for dwelling. Tandem parking spaces to accommodate a basement apartment shall be permitted;
• Only one driveway per lot
• Prohibit new entrances facing street
• Prohibit exterior entrance above first floor
• Prohibit stairs, stairwells for entrances below grade facing a street
• Registration of Basement Apartment $500 for owner occupied home & $1,000 for investment property
• Investment license would require minor variance

The following documents are also required to apply for licence for a basement apartment.

• Letter from the Fire Chief stating that an inspection has been conducted of the location, within thirty (30) days of the date the application for the Licence is submitted, and it is in compliance with all the provisions of the Fire Protection and Prevention Act, S.O. 1997;
• Certificate of Inspection report issued by the Electrical Safety Authority certifying that an inspection has been conducted on the location, within thirty (30) days of the date the application for the Licence, and that there are no visible fire , shock or electrical safety hazards and the property is in compliance with the requirements of the Ontario Electrical Safety Code.
• Proof of Insurance which the Owner shall take out and keep in full force and effect throughout the term of the Licence and any renewals thereof, general liability insurance in respect to the Second Unit against claims for personal injury, death or property damage or loss, indemnifying and protecting the Owner, their respective employees, servants, agents, contractors, invitees or licensees, to the inclusive limit of not less than Two Million ($2,000,000) Dollars on a per occurrence basis. Such insurance shall specifically state by its wording or by endorsement that The Corporation of the City of Mississauga is included as an additional insured under the policy; and such policy shall not be terminated, cancelled or materially altered unless written notice of such termination, cancellation or material alteration is provided by the insurers to the Corporation of the City of Mississauga at least thirty (30) clear days before the effective date thereof

Every Owner shall:

• Keep and maintain the following written records and shall make these records available for inspection forthwith on the request of the Licence Manager or Officer the full name of the Tenant(s) and records of inspections every three (3) months for Investor-Dwellings
• Post a fire safety plan, approved by the Fire Chief in a conspicuous place in the Second Unit
• Ensure that each floor of the Dwelling is equipped with a functioning Fire Extinguisher.
• Provide written proof that the Tenants have been advised that the Licence Manager or Officer will be requesting permission to enter all Second Units on the Property (at a time and day convenient to the City, the Licensee and the Tenants) for the purposes of conducting inspections under this By-law.
• Maintain compliance with all applicable provisions of the Zoning By-law as it relates to a Second Unit, including any conditions imposed by the Committee of Adjustment for a minor variance.
• Either personally or by their Agent, conduct an inspection of the Investor- Dwellings every three (3) months to ensure compliance with this By-law and any other applicable law and file an inspection report on the form provided by the Licensing Section including all remediation action to be taken, and a time frame for gaining compliance where non-compliance is found by March 31, June 30, September 30 and December 31 of each calendar year.
• Submit in writing, the name, address and contact information for any individual that will be acting as their Agent for the purposes of conducting and reporting on inspections, where applicable.
• Ensure that the current Business Licence Number for the Licenced Dwelling appears on all advertisement for the business.

No Licensed Owner shall:

• Permit the occupancy of, for sleeping purposes, any basement or any space used or designed to be used as a lobby, hallway, closet, bathroom, laundry room, stairway or kitchen or any room having a floor area of less than 80 square feet or any room being less than 7 feet 6 inches from the floor to ceiling.
• Permit non-compliance with the Property Standards By-law, the Nuisance Weeds and Long Grass By-law, the Nuisance Noise By-law, the Nuisance Lighting By-law, Open Air Burning, the Noise Control By-law and all other applicable by-laws and applicable provincial laws including but not limited to the Building Code Act, the Fire Protection and Prevention Act, and the Accessibility for Ontarians with Disabilities Act.
• Permit the construction, renovation, alteration or addition is carried out on the Licensed Dwelling without first obtaining the necessary Building Permit as may be required.

Town of Newmarket - Requirements for approval of basement apartments in Newmarket

• Permitted city wide in all single family or two family zone (in single detached, semi-detached, or row house dwellings)
  
• Total of four exterior parking spaces to the garage must be provided - Town of Newmarket requires four exterior parking spaces.  A 
  smaller parking space size 2.6m x 5.7m is used to provide more ‘wiggle’ room to accommodate the four required parking spaces in 
  Newmarket. The Town of Newmarket Committee of Adjustment has approved three applications for a reduction in number of parking 
  spaces since 2003 when the recent policies were implemented.  Four  parking space requirement precludes basement apartments within 
  some of the newer residential developments, due to smaller lots restricting the ability to widen driveways.
• The primary dwelling and basement apartment must be serviced by full municipal water and sewer
  
• Front facade shall not be altered. The external appearance of the house must not be altered
  
• No new basement apartments will be permitted within the Environmental Protection Open Space (OS-EP) Zone or within the Floodplain and 
  Other Natural Hazards (FP-NH) Zone as delineated by the Lake Simcoe Region Conservation Authority.
• Maximum size to not exceed 40% of the total gross floor area of the dwelling unit located above grade
  
• Basement Apartment must locate within main dwelling
  
• Maximum basement apartment floor area must not exceed 40% of total floor area located above grade
  
• Daycare is not permitted in the basement apartment
  
• Basement Apartment Application fee $110
  

City of Niagara Falls

Official Plan – Amended May 2011

4.6 Housing Strategy

An accessory apartment shall be permitted within a single detached dwelling in all residential areas provided that following criteria can be satisfied.

4.6.1 The accessory apartment is subordinate in size to the principal use.

4.6.2 The lot size and configuration are sufficient to accommodate adequate parking, green space and amenity areas.

4.6.3 The building age and condition are capable of supporting the intensified use and requirements of the Building Code and Maintenance and Occupancy Standards By-law can be satisfied.

4.6.4 Any proposed building addition for an accessory apartment satisfies the single detached zoning requirements relative to height, setbacks and coverage for the entire dwelling and shall not detract from or alter the building form and/or character of the area.

Town of Oakville

Oakville allows basement apartments in some areas. The current registration fee for a basement apartment is $300. In certain areas of town, like North Oakville, they’re allowed because they fit. Other places where basement apartments don’t fit, they’re not allowed. Basement apartments are allowed in newer areas, such as the burgeoning communities along Dundas Street.

Under the Livable Oakville Plan, Town of Oakville will modify its by-law to further accommodate Bill 140 and changes to the Planning Act. Establishing zoning regulations regarding location and additional requirements for basement apartments remains the responsibility of the Town of Oakville.

Town wide (currently only specific zones permit legal basement apartments) Town of Oakville's review of best practices identified that most zoning by-laws place a maximum size on basement apartment with additional clauses dealing with design and compatibility measures (i.e. prohibiting a separate access to the accessory dwelling unit on the main front wall of the detached dwelling), required minimum one parking space for the basement apartment, and additional location restrictions.

Town of Oakville's staff is recommending the first draft Zoning By-law permit one basement apartment within either a detached or semi-detached house with a total floor area not exceeding a maximum of 30% of the floor area of the house which would include the area of a basement. In addition, a separate entrance to the unit will be prohibited on the main front wall of the house thereby maintaining the existing character of the 

house. The intent is to encourage an entrance through a common vestibule in order to maintain the single dwelling unit appearance of the house.

Town of Pickering - Requirements to legalize basement apartment

• Allowed only in singles and semi-detached homes
  
• Basement Apartment must be smaller than primary
  
• Maximum  Basement Apartment floor Area 100 m² (1,076 ft²)
  
• No home-based business - Home-based business is prohibited in either dwelling unit of a dwelling containing a basement apartment
• Three on site parking spaces required
  
• Basement Apartment Registration Fee: $500
  
• Must demonstrate compliance under Ontario Fire Code
  

Town of Richmond Hill

Requirements are still under development

• To be allowed city wide in detached and semi detached homes
• Maximum basement apartment floor area must not exceed 265m² (2,853 ft²)
• Minimum frontage 9 m (30 ft)
• Minimum lot area 30%
• Minimum one additional parking space
• Only one driveway apron shall be permitted to a lot with a frontage of less than 18 m (59 ft)
• Driveway maximum – depends on lot size

Orillia senior with 10-foot snowbank fined, but has nowhere else to put snow

ORILLIA, Ont. — Wayne Miller, 67, has nowhere else on his property to pile the snow that keeps falling on his driveway, but that might not stop his city from fining him for it.

The senior was fined $235 in early January by the City of Orillia in central Ontario after taller than himself had tumbled down on the nearby sidewalk and road.

“It’s not fair. Where are you supposed to put it?” wondered Miller, who rents an apartment on the property.

He paid the ticket even though he disagreed with the fine.

“You don’t want that hanging over your head,” said the man who lives on Old Age Security.

He also worries for his neighbours, also on fixed incomes and facing the same fate.

The city says the fine covers the court costs and victim fine surcharge, and it’s the only way it can enforce rules to keep the streets clear.

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Basic Requirements to Legalize Basement Apartment

Province of Ontario laws now require all the municipalities to allow basement apartments in homes.

In 2009, the Ontario provincial government began developing a long-term affordable housing strategy. Public consultations were held across Ontario. In 2010, the Ministry of Municipal Affairs and Housing released Building Foundations: Building Futures, Ontario’s Long-Term Affordable Housing Strategy (LTAHS). As part of the strategy, Bill 140: Strong Communities through Affordable Housing Act, 2011 was introduced to Provincial Parliament on November 29, 2010 and received Royal Assent on May 4, 2011.

A basement apartment might be just what you need to provide the added income to make your dream purchase affordable, but beware of the pitfalls and remember that you as a purchaser assume all the liability of a home that doesn't comply, regardless of when you bought it.   Smart real estate agents never list a house as having a legal basement apartment since they do not want to guarantee that the basement apartment complies fully with all the applicable fire codes, building codes, Electrical Safety Authority regulations and zoning and housing standards by-laws. Illegal basement apartments are a risk to the occupants and others in the structure as well as a concern to the community in general. They are dangerous as they may pose a fire risk and other safety concerns such as:

• fire risks such as not enough building exits, fire separations between units, working smoke alarms, carbon monoxide detectors
• illegal and unsafe utility connections
• illegal and unsafe building renovations
• excess driveway and street parking
• excess garbage
• overload on existing utilities (electrical, plumbing, water and sewers)
• possible depreciation of neighbouring property values

When a suspected illegal basement apartment is reported, the Fire Department receives the complaint. A Fire Prevention Officer will then conduct an initial inspection to determine whether the basement apartment is permitted (as per Fire Code regulations only) and to ensure that while the basement apartments are occupied that they are made safe. The fact that the basement apartment is inspected by the Fire Department and may be approved as safe or that they meet the Fire Code does not necessarily mean that the basement apartment is permitted under the legislation

The Ontario Building Code which prescribes minimum requirements for the construction of buildings is a code that applies only when the house was built.  The building code changes over the time but for the most part, it does not apply retroactively.

The fire code which prescribes construction and safety issues as they relate to how the building is required to perform should it catch fire, can apply retroactively.

Here are few basic requirements for a legal basement apartment.:

(1)  The detached or semi detached house must be at least 5 years old.

(2) The front of the house cannot be significantly altered to change its appearance from that of a one unit building.

(3) Basement apartment must be smaller than the main dwelling unit.

(4) Minimum ceiling height is 6'5". Ceiling must be continuous. Suspended (T-bar type) ceilings and exposed joists are not acceptable.  Furnace room ceiling must be dry walled or plastered too.

(5) Doors must be solid wood or metal and minimum thickness is 1.75". Exterior door must be at least 32"x78". Interior doors must have a 1/2 inch gap at the bottom to provide air movement within the basement apartment, unless return air ducts are installed in the room. The smallest dimension of the window is 18" and the opening must be at least 600 sq in.  Windows must be within 3' of ground, and if there is window well it must extend 3' from the house wall to allow room to crawl out.

(6) Bathrooms have to have either a window or fan.

(7)  A kitchen equipped with a refrigerator, stove in good repair and working condition. Cupboards having a capacity of not less than four cubic feet multiplied by the total number of persons occupying the unit..

(8)  New basement apartments require building permits before construction begins. In most areas an additional parking space is required for new basement apartments. If there is a parking spot for the upper unit, there must also be a parking spot for the basement apartment.

(9)   The property owner is responsible to make sure that smoke alarms are installed and maintained.

Carbon Monoxide alarms are required under many Municipal By-laws. They are to be provided in each dwelling unit in a building containing a fuel fired appliance or an attached garage. Even if they are not required by legislation they make good sense with to-day's design methods providing for air-tight construction of dwelling units.

Smoke alarms must be installed in each dwelling unit on every floor including those containing a bedroom or sleeping area. The alarm must be audible in bedrooms when the bedroom doors are closed. The smoke alarm may be battery operated or connected to an electrical circuit with no 

disconnect switch between the over current device and the smoke alarm. Interconnected smoke alarms may be required if:

•  15min. Fire Resistance Rating is used between dwelling units

•   one dwelling unit must exit through another dwelling unit

If required, interconnected smoke alarms must be installed in every storey above and below grade in each dwelling unit, and in every shared means of escape where applicable. These alarms must be audible in bedrooms when the intervening doors are closed..

Some municipalities require to provide the furnace with a relay to shut down the furnace blower fan and gas valve if the smoke alarm is activated, and equip the heat ducts and cold air return in the basement apartment with fire dampers where they penetrate the wall or ceiling membrane. A cold air return is required in the basement apartment and if located within 24” of the basement floor fire damper is not required.

(10)  An electrical inspection by Electrical Safety Authority (ESA - 1 877 ESA SAFE) )and all the deficiencies identified during the inspection must be addressed. Owners should retain the letter of compliance received from the Electrical Safety Authority for future reference purposes. This letter must be made available to the Chief Fire Official upon request.

(11)  A continuous fire separation with a 30 min. Fire Resistance Rating is required between dwelling units and between dwelling units and other areas. This may be provided by existing membrane of lath and plaster or gypsum board. Openings in Fire Separation shall be protected with rated doors installed in hollow metal or solid wood frames and equipped with self closing devices

Lesser degrees of Fire Resistance Rating may be acceptable with the provision of interconnected Smoke Alarms or Sprinkler Protection. The containment features are intended to provide protection for the occupants living in a dwelling unit from a fire occurring in another portion of the building, outside of their control.

• To achieve a 45 min fire resistance rating for walls, one layer of 5/8" Type X drywall on each side of the wall is required.
• To achieve a 45 min fire resistance rating for ceilings, one layer of 5/8" Type X drywall is required.
• To achieve a 30 min fire resistance rating for walls, one layer of 1/2" regular drywall on each side of the wall is required.
• To achieve a 30 min fire resistance rating for ceilings, one layer of 1/2" Type X drywall or two layers of 1/2" regular drywall is required or one 
• layer of 5/8" regular drywall.

(12)  A single means of egress - provision for the escape of persons from each dwelling unit in the event of fire - may be acceptable if the following conditions are met:

•  It is properly separated with a 30 min. Fire Resistance Rating

• The flame spread rating of means of escape does not exceed 150 (wood paneling is unacceptable)

• The means of escape does not involve entering another dwelling unit or other occupancy and leads directly to the outside at ground level.

Two means of escape are required if one means of escape is through another dwelling unit. An existing means of egress may be acceptable if the basement apartment is sprinklered.

(13) Ontario building code (O.B.C Part 9 Section 9 Clause 11.2) also requires minimum sound transmission class rating - STC 50 sound proofing between the dwelling units. The worst noise issues are usually noted under the main floor kitchen, bathroom, powder room, foyer and laundry room where the upper floor is not carpeted. The Ontario Building Code's Supplementary Guidelines recommends either 38mm concrete layer over the sub-floor  and two layers of the superior Type X gypsum board ceiling below it or 25 mm concrete light weight concrete on the sub-floor, absorptive insulation between the ceiling and the sub floor and double layer ceiling.

Section 9.8 of the Ontario Fire Code prescribes the requirements for Retro-fit for basement apartments in the following areas:

1. Exits - egress

2. Separations between dwelling units (ceilings and walls), doors, etc.

3. Smoke alarms

4. Carbon Monoxide alarms (per By-law)

5. Electrical inspection

The landlord (owner) is responsible for compliance with the Ontario Fire Code and is responsible to ensure the safety of their tenants in the basement apartment. An individual may be fined $50,000 per offence or one year in jail or both, for violations of the Ontario Fire Code.

The landlord (property owner) is also responsible for compliance with the municipality’s zoning by-law to ensure that the basement apartment is being used/occupied as permitted by the zoning by-law. An individual who is found guilty of a violation of the municipality’s zoning by-law may be fined up to 25,000 per offence and a corporation found guilty of an offence may be fined up to $50,000 per offence.