Hi,
I am new to theses forums, but have read two of the REIN books and am blown away by the knowledge and insight in many of these online discussions. I wish I was privy to this information when my brother and I started buying rentals 4 years ago(we have 5 now), it could have saved us a lot of hassle and heartbreak.
The question I have is in regard to two suite houses. We bought a large house last year in the "basement apartment no-man`s land" of Mississauga, Ontario, and have unwillingly wandered into a gray zone and don`t know how to proceed. We bought the house because it advertised a legal two bedroom-basement apartment and the vendor provided us with copies of the electrical, fire inspection, and something from the city saying it was grandfathered because it existed pre-1996, all addressed to the vendor. Since the house passed our own inspection and the price was right, we bought it.
My RE agent, lawyer, and title insurer seemed satisfied, so we guessed it was OK. Well guess what, four months after we moved in an inspector left thier card on my door. I called and they wanted to do an immediate inspection and they said though it had passed the fire, electrical, zoning,.... but I still needed another inspection and permit with architectural drawings, plumbing etc..
I explained to the inspector that I was sold the house with a legal apartment and had documentation. The inspector asked for copies of the MLS ad, and copies of the letters. They said they would not bother me if I was planning only personal use for the house, but I told them I needed it to make the house cash flow and for resale value. I sent the documentation almost a year ago and have heard nothing, but now have the basement rented.
Has anyone ever run into this situation, what do these blueprint drawings cost etc.. Is the vendor responsible for these costs or am I stuck with them. Finally, do I dare follow up with the inspectors or leave it till I need to sell.
Thanks in advance for any help or advice.
Confused in Ontario!
I am new to theses forums, but have read two of the REIN books and am blown away by the knowledge and insight in many of these online discussions. I wish I was privy to this information when my brother and I started buying rentals 4 years ago(we have 5 now), it could have saved us a lot of hassle and heartbreak.
The question I have is in regard to two suite houses. We bought a large house last year in the "basement apartment no-man`s land" of Mississauga, Ontario, and have unwillingly wandered into a gray zone and don`t know how to proceed. We bought the house because it advertised a legal two bedroom-basement apartment and the vendor provided us with copies of the electrical, fire inspection, and something from the city saying it was grandfathered because it existed pre-1996, all addressed to the vendor. Since the house passed our own inspection and the price was right, we bought it.
My RE agent, lawyer, and title insurer seemed satisfied, so we guessed it was OK. Well guess what, four months after we moved in an inspector left thier card on my door. I called and they wanted to do an immediate inspection and they said though it had passed the fire, electrical, zoning,.... but I still needed another inspection and permit with architectural drawings, plumbing etc..
I explained to the inspector that I was sold the house with a legal apartment and had documentation. The inspector asked for copies of the MLS ad, and copies of the letters. They said they would not bother me if I was planning only personal use for the house, but I told them I needed it to make the house cash flow and for resale value. I sent the documentation almost a year ago and have heard nothing, but now have the basement rented.
Has anyone ever run into this situation, what do these blueprint drawings cost etc.. Is the vendor responsible for these costs or am I stuck with them. Finally, do I dare follow up with the inspectors or leave it till I need to sell.
Thanks in advance for any help or advice.
Confused in Ontario!