Calgary, like many cities in Canada, has a major problem with marijuana grow-ops, or indoor marijuana farms. The reasons are simple. They’re hard to find, they make a lot of money, and if you get caught, the penalty you face likely won’t be too severe.

The damage that a grow op can do to a home is significant. Many of these homes have structural defects, including holes in the concrete foundation which are made to accommodate stolen electrical services needed to run the operation. Holes in ceilings and attics are often made to route electricity and to vent excess moisture from the homes. What is of the most concern is the mold, often toxic, which affects ceilings, drywall, paneling, and insulation. This mold can be a serious health risk to anyone living in the home, as it may cause respiratory damage.

The Calgary Health Region condemned 78 homes in the Calgary area in 2003 and 2004, and there currently are over 100 homes listed as condemned as a result of grow ops. Realtors have access to this list, which is provided to the Calgary Real Estate Board by the Calgary Health Region. These properties have been identified through the registration of a caveat filed at the Land Titles Office as having been condemned as the result of the manufacture of illegal drugs or use as marijuana grow operation. This list does not identify properties which were used as a grow op but never condemned, or properties which have been remediated and the caveat subsequently removed. In order for a condemned property to be removed from the list, they require that remediation documentation be provided to the proper regulatory agency.

A home inspection is recommended as a condition of sale for any property. While an inspection can’t guarantee that problems associated with grow ops will be identified, it is very likely that excessive moisture levels would be detected by a competent home inspector. Your REALTOR should also be consulted for specific recommendations regarding any concerns you might have. REALTORs are prohibited from distributing specifics about which properties are presently on the condemned list (this violates the Canada Privacy Act), but we may share specific information with a client who is directly involved in the sale or possible sale of a property.

If you have any questions or concerns, please don’t hesitate to contact me.

JUDY MONCHUK
Canadian Press

Calgary — Calgary's red-hot real-estate market is so frenzied that people are lining up for condemned houses that were used as drug operations. And while some houses are actually listed as former marijuana grow-ops, Ald. Diane Colley-Urquhart says there could be thousands of similar homes on the market that desperate, unsuspecting buyers may purchase.

“The market is so hot (that) these houses are selling with zero conditions on them,” said Ms. Colley-Urquhart, who toured a former grow-op Sunday with a woman who wanted to buy the three-year-old house listed for $320,000.

“(She) wants to get someone to come in and look at the damage ... but she hasn't got time because people are lined up knee deep to buy the house,” said Ms. Colley-Urquhart, who chairs the Stop Grow Ops Calgary Coalition.

In recent months, prices for resale homes have soared as people moving into the booming city scramble to find a place to live. The possession time for new homes has stretched to up to 14 months as builders struggle with a shortage of workers in construction trades.

Calgary Realtors sounded the alarm last fall about former grow-ops being put on the market. Housing agents now require sellers to sign a disclosure form noting the home's former use. But although police shut down 300 operations last year alone, there's no way to know if that is just the tip of the iceberg.

“We don't know if we have 900 of these houses or 9,000,” Ms. Colley-Urquhart said Monday.

The seedy past of the home she toured is no secret. It's mentioned in the real-estate listing, health warnings are posted on the windows and the home looks as it did when police shut down the grow-op in April 2005.

Dozens of pots — minus the plants — cover the unfinished basement floor. There are telltale changes to the ventilation system and holes are ripped in the drywall. Chemical bottles are spread across the kitchen counter.

Kevin Clark of the Calgary Real Estate Board, who has shown the condemned house to a potential buyer, says what's more worrisome is that there are sellers who don't want to be upfront about a home's past and who opt to go directly to potential buyers.

“The huge red flag we see is that within the speed of this marketplace, if I personally owned a grow operation, the place to be selling it is privately,” said Mr. Clark.

“If a contractor/tradesperson was to be the buyer of the house, they might look at it quite differently and be able to remediate it. Your average homeowner, I'd say absolutely not, avoid it completely. The problem we run into is that there's no standard measure for remediation.”

A public health inspector with the Calgary Health Region says anyone buying a condemned house can't move in until the property is brought up to acceptable living standards. That can cost tens of thousands of dollars.

Inspector Vicki Wearmouth said it's not uncommon for a home to need upwards of $35,000 in repairs, which can mean stripping a house down to its studs to get rid of mould. In the most extreme cases, demolition is the only answer.

“I get many, many calls from realtors and prospective purchasers questioning individual houses that they are looking at,” said Ms. Wearmouth.

“If they do purchase the property, they can obtain a property of the order that outlines what work is needed to be done before they can occupy it,” she said. “The notice of health hazard is issued to the property. It doesn't lapse just because somebody sells it. It has to be remediated.”

Ms. Wearmouth said health inspectors condemned 78 houses in 2004 and more than 100 homes in 2005. She expects that number will continue to rise this year.