Toronto Condo and Real Estate Blog

By Nalliah Thayabharan, Registered Home Inspector

There is no single government authority, which provides written certification that any given basement apartment is legal. 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.

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 in Toronto:

(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 unit must be smaller than the other units.

(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″. The smallest dimension of the window is 18″ and the opening must be at least 600sq 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) In most areas an additional parking space is required for new apartments.

(8) New apartments require building permits before construction begins.

(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 today’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:
- 15 min. 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.

(10) An electrical inspection by Electrical Safety Authority 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 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.

(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 building is sprinklered.

Nalliah Thayabharan is a Registered Home Inspector, Member of OAHI & CAHPI-Ontario and ASHI certified Inspector. Contact Nalliah at Expert Building Inspections Ltd. - 905-940-0811 or www.expertinspector.com.

Things to consider if you are purchasing your new home to “flip”

By Andrei Zaretski - New Dream Homes and Condos Magazine

Buying Toronto real estate for the purpose of flipping it for profit may not be as good an idea as it seems, according to Amit Paul.

“I don’t recommend it because there are a lot better ways to earn money in real estate in this city,” Paul said.

He explained that prior to 2002, people interested in buying simply for the purpose of resale were free to assign the agreement of purchase and sale. Buyers had the option of selling off their homes before the closing date once the property appreciated in value. However, some builders no longer allow this.

“Because of that, you actually have to go through the process of getting the mortgage on your name and then actually closing, going through all those costs, and then reselling it and going through all those costs again,” Paul said.

Under certain circumstances, buying for resale can be profitable. A good example is the Town of Milton.

According to Paul, people who bought in Milton 2.5 years ago and sold off their property last year made around $30,000 in a span of approximately 18 months. However, location and timing is the key, so the house must be purchased in the right area just before the “boom” hits – a rather difficult task.

“Doing it in places like Richmond Hill, Vaughan, Markham, Oakville – forget about it,” he said. “It’s not going to work.”

The number of people who are successful in “flipping” homes in the GTA is very low. People who work in the housing business tend to be more successful because of their ability to purchase a rundown home and exercise their contacts to restore it for resale. According to Paul, their profit ranges between $30,000 to $40,000.

Aside from location, square footage is another important factor to consider when buying for resale.

The Multiple Listing Service breaks up its listings into categories of 1,500 to 1,999 square feet or 2000 to 2499 square feet. If you are buying a 1,980-square-foot home, Paul recommends spending the extra few thousand dollars to push over the 2,000 mark.

“If it’s just a matter of a few thousand dollars more, it’s better to (spend it) so that you can get the upper echelon,” he said.

Paying attention to trends comes handy if you plan to sell in a short time. Dark hardwood, dark cabinetry and stainless steel appliances will elevate the price of your home in today’s market.

Things like extra bedrooms could also prove to be a worthwhile investment, since a family in need of a home with many bedrooms will be prepared to spend more money. That’s not to say that you should buy four bedrooms if all you need is three, but you will get your money back, Paul said.

“Generally, the person you want to speak to on things like that is a real estate agent,” Paul suggested. “They’re the ones who are going to know the trends. They’re going to know what people are looking for when they’re buying new homes. They have a good idea of renovation costs and what to look for.”

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TORONTO (Canada Newswire) - The January Toronto real estate market was the best January ever, registering 13% more transactions than a year ago, Toronto Real Estate Board President Dorothy Mason announced today. The 5,173 sales in the month were 6% above the previous record set in January 2002.

“Sales have been very solid to start the year,” Mrs. Mason said. “It’s a very good sign for the market to see a healthy level of activity carrying over from last year’s strong finish.”

Scarborough’s Birchmount Park / Cliffside area E06 saw 55% more overall sales compared to last January, with detached homes accounting for nearly all transactions.

In the Islington / Kingsway area of Etobicoke, a jump in condo sales helped to push overall sales 42% higher than January 2006.

An increase in sales of condos and semi-detached homes helped lift Forest Hill to an overall increase of 56% over January of last year. North of the city, in Markham West / Langstaff N01, 50% more homes changed hands in January than during the same month a year ago.

Ted Tsiakopoulos, CMHC’s Ontario regional economist, noted that the Toronto real estate market has been a very stable sector of the economy.

“The Toronto real estate market remains resilient despite slower job growth, high energy prices, and a loss of migrants to western Canada,” Mr. Tsiakopoulos said. “Historically low interest rates, strong income growth and healthy consumer confidence are important factors keeping January home sales buoyant across the GTA.”

The Toronto Real Estate Board’s President added that while the results are preliminary, they should instill confidence in consumers.

“The Toronto real estate market is healthy and continues to be well supported by strong economic fundamentals,” Mrs. Mason said. “These are ideal conditions, and consumers can feel confident making a switch to another home or realizing their dream of home ownership for the first time.”

Toronto Realtors are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Its 17,884 listings resulted in January’s 5,173 sales. Serving over 24,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.

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