Bargain Basements?

Basement Apartments

New Rules

In 1994 the municipal by-laws that forbid two separate dwelling units in most homes were abolished by the Residents' Rights Act. However, the new Land Use Planning and Protection Act, 1996 which has just been proclaimed, will affect basement apartments.

Under the Land Use Planning and Protection Act, the municipalities have the power to decide as to:
  • whether to allow the basement or secondary unit to be built
  • where to allow the unit
  • the planning standards applicable to the unit.

The following are deemed to be permitted use under the new Act:

  • Any existing basement apartments used or occupied on November 16, 1995 OR
  • where a building permit has been issued on or before May 22, 1996 for units in detached homes, semi-detached homes or row houses,

This new legislation does not affect the requirement that the units comply with the four safety standards in the Fire Code - smoke alarms, fire separation between dwelling units, means of escape and safe electrical wiring. Owners of the units have up to July 14, 1996 to comply with the Fire Code safety standards and the units are to be inspected and certified by the local fire department and Ontario Hydro by July 14, 1996.

What does it mean to you as a Purchaser?

As a purchaser of a property with a basement apartment, your lawyer will have to ensure that the vendor has satisfied the above conditions. Therefore, it is essential that you tell your lawyer that the property you are buying contains a basement apartment.

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