CLICK HERE to view the HIGH-QUALITY version of this article.

Dr. Aaron Goodarzi is an expert in radon and recently spoke at the Calgary Real Estate Board. He explained that it is an invisible and odourless radioactive gas with the potential to cause lung cancer and other serious health problems. 

Yes, that statement got my attention too. 

CLICK HERE  for Dr. Aaron Goodarzi’s TED Talk, and below are other useful resources.

Check out the links for more information.

Canadian Real Estate Association (CREA)

Health Canada 

Radon Safety

C-NRPP

TESTING FOR RADON

According to Dr. Aaron Goodarzi, Health Canada and the real estate industry's governing bodies, the best practice is to test for a minimum of 90 days. They do not believe short-term tests taken during home inspections or over a few days collect sufficient data for accurate and reliable results. Health Canada suggests testing between October - April with an acceptable level of 200 becquerels per cubic meters (200 Bq/m3). 

YOUR HOME HAS HIGH LEVELS OF RADON, NOW WHAT?

The solution is relatively simple and inexpensive. 

A radon mitigation device is installed to vent the gas from the basement to the outside. How much? Well, that depends on the scope of the work, and I've heard quotes from $500 - $3,000. 

CLICK HERE to find a Canadian - National Radon Proficiency Program C-NRPP) technician in your area. 

DOES RADON AFFECT MY REAL ESTATE TRANSACTION?

It could.

SELLING A PROPERTY

If the seller has not completed or is in the process of testing, the results are not available for the initial transaction, so there are no guaranteed outcomes during the offer and negotiation phase. 

As of this writing, radon testing is not mandatory for sellers; however, that doesn’t mean the topic is over for them. Why? 

• Some prospective buyers may ask if tests have been completed, and become hesitant if confirmed long-term results are not available.

• If test results are not available, some buyers may request a holdback until radon levels are confirmed. If the results are high (i.e., greater than 200 Becquerels), they may ask the seller to incur the costs of mitigation or that the holdback funds will be used radon mitigation.  And, if the results are low (i.e., less than 200 Becquerels), the funds will be released to the seller.

• The Real Estate Council of Alberta's (RECA) guidelines state that "if the radon test showed high levels of radon (higher than 200 Becquerel), that's considered a material latent defect that MUST be disclosed to prospective buyers unless a radon mitigation device is installed prior to listing."

• Some buyers may take on the long-term testing and potential mitigation themselves, so they have peace of mind.

  
  

If I was selling a property, the questions I'd be asking myself is...

a) Would I rather get ahead of a potential problem by start long-term testing now, undergo mitigation (if necessary), and potentially before a sale. 

The con - spending money upfront without knowing if the radon issue will arise. 

The pro - have more control over the testing, mitigation process, and share the low test results with potential buyers as a selling feature.   Also, I benefit from living in a low radon environment.

b) Or wait and see if radon is an issue for buyers, then work with a holdback, potentially take responsibility for mitigation before closing,  accept there could be delays throughout the process, work with the buyer on solutions, etc.

BUYING A PROPERTY

Buyers can ask the seller if they have completed a 90-day radon test and request to see the results.

According to RECA, if the levels are greater than 200 Becquerels, sellers must disclose it as a material latent defect.

What are your options?

• Many buyers will choose to complete the radon testing themselves, so they have peace of mind in the process and mitigation. 

• Some buyers may ask for a holdback until confirmed long-term testing can be confirmed.  If the radon levels are low then the funds are released to the seller.  And, if the radon levels are high (i.e., greater than 200 Becquerels), they may ask the seller to incur the costs of mitigation or that the holdback funds will be used radon mitigation.  The seller's agreement is not mandatory.

• During the seminar, Dr. Aaron Goodarzi suggested that extensive renovations (especially in the basement) could alter radon levels, so pre-renovation testing is not as important and recommends post-renovation testing.

WHAT DID I DO?

I started testing once it was delivered, effortless to set up, and I'll send it back after 90 days. If the results come back above 200 Bq/m3, then I'll hire a C-NRPP technician for mitigation. 

Sure, all this publicity could be "proven wrong" and retracted later (like vaping is good then shortly after it's a bad idea, wind power is all the rage then not, eat gluten-free...no wait, etc.), but even if that does happen, I won't regret taking action because I have peace of mind now.

WHAT'S NEXT

Do your research and educate yourself on all the details and talk to different industry professionals for their feedback and insight on various aspects.  Then weigh the pros and cons with each option then decide what's best for you. 

I do my best to ensure all information is accurate, but it's is not guaranteed.

FOR YOU - A $500 REFERRAL FEE

Royal LePage Solutions is now offering a referral fee to unlicensed individuals.

When you refer a client, you'll receive a $500 referral fee upon closing - it's that simple.   Just make the introduction, and we'll do the rest.

Get in touch for more information.

CLICK HERE to view the HIGH-QUALITY version of this article.

Do you have an existing secondary suite that is not currently on the City of Calgary's Registered Secondary Suite list? 

If your answer is yes, then you may want to seriously consider legalizing it before June 1, 2020, because the City will have a new approach to illegal secondary suites.

Why Now? 

There are two good reasons.  First, until May 31, 2020, the City is discounting and waiving fees and using the current Building Code. Any existing suites submitted for approval after  June 1, 2020, no discounts will apply, and the new building code will be affected (National Building Code - 2019 Alberta edition). One of the significant changes in the new building code is that secondary suites a dedicated heat source, such as a furnace, for each unit = $$$ 

The second reason is that as of June 1, 2020, the City of Calgary will be actively pursuing illegal suites that are not on their registered list.  

What does this mean for you?   

Because the City will be actively seeking illegal suites, your suite could be shut down, and there will be tighter restrictions and cost you more to legalize it later.

WHAT DO I NEED TO DO?

Applications and properties are considered on a case-by-case basis and below is a basic outline of the general process as described to me by the City of Calgary.

1) CONFIRM YOUR LAND USE DISTRICT

CLICK HERE and type in your address in the “Step 1” section to confirm your land use district.  If your land use is for only one suite on the property  (example R-C1 or R-1) or DC (the City has Direct Control), the City will need to a) approve the usage and b) a Development Permit is required.  

If only one suite is permitted on the property, there is no guarantee the City will approve the secondary suite

because it does not comply with the current land use.

2) BOOK A COORDINATED INSPECTION

Contact the City of Calgary directly by calling  403.268.5311 or using their 311 Online Services site.  For this appointment, a Bylaw and Safety officer will review the suite, advise on the outstanding items and land use policies.

3) APPLY FOR A DEVELOPMENT PERMIT

If your land use is discretionary and approved at the coordinated inspection, a Development Permit (DP) application will be submitted. The timeline for DP application review is 60 days to approve and CLICK HERE for more information about the process.

Development Permit?  Think = Can it be there?

A Development Permit is an authorization from the City of Calgary, showing that proposed construction work is approved and complies with the Alberta Building Code. Work may include construction, demolition, alterations, relocating buildings, and sometimes repairs of buildings.

4) APPLY FOR A BUILDING PERMIT

Once the DP has been approved, a Building Permit (BP) application is submitted.  There will be another inspection to review the work recommended by the safety officer, and if everything meets the requirements, then final approval will be granted.    Your property will be added to the secondary suite registration list.  The timeline for BP application review is approximately one week.  CLICK HERE for more information.

Building Permit?  Think = Is it safe?

A Building Permit is designed to address life and safety issues of a structure. It gives the authorization to erect, demolish, relocate, alter or repair a structure, or change the use or occupancy of a space.  The building permit application is reviewed for compliance of the Alberta Building Code by a plans examiner to ensure safety.

Q&A 

DO I NEED TO LEGALIZE THE SUITE IF I DON'T INTEND ON RENTING IT OUT?

If the secondary or mother-in-law suite has both a bathroom and cooking facilities, the secondary suite permits are necessary.

WHAT ABOUT SHORT TERM RENTALS AND LODGING HOUSES?

If you’re offering a short term rental or lodging house, then you’ll need to follow the respective guidelines about egress, maximum guests, advertising, etc. CLICK HERE for more information.  

For more information, go to the City of Calgary's secondary and backyard suite webpage CLICK HERE

What does this mean for you?

If you proceed with attempting to legalize your illegal secondary suite and your land use district only allows for one, there is no guarantee the City of Calgary will approve because the property does not comply with the current land use. However, with the new approach to illegal suites, the risk of getting shut down and incurring more costs and facing tougher rules is also a consideration.   

WHAT I WOULD DO

Do your research and get informed now, then call the City of Calgary to confirm the details. Give yourself time to discover all your options so you can make a confident decision on what's best for you.

I do my best to ensure all information is accurate but it's is not guaranteed.