Unauthorized Accommodation Rental Suite
The topic of buying a Whistler property with unauthorized accommodation is expansive. Unauthorized means that the space was not identified in the original building plans. These plans were submitted to the municipality so that a building permit could be obtained. Obtaining the permit is a legal process.
This post will focus on unauthorized accommodation in the form of a rental suite. A rental suite within a residential property (house) is common in Whistler. The definition of such a suite might be: “A suite is a separate living area contained within a dwelling unit functioning as a self-contained suite, typically complete with its own kitchen, bathroom, and bedroom.” When the suite is unauthorized, the suite is colloquially known as an in-law suite, mortgage helper, nanny suite, non-conforming suite, and other similar descriptive names. Meaning that the suite is not on the original building plans.
There is a risk with purchasing residential property with unauthorized accommodation. The Resort Municipality of Whistler (RMOW) may order that the unauthorized accommodation be removed. It is the Fire Chief who decides this. To the Fire Chief, your suite was either legally or illegally installed. In my experience, when the Fire Chief gets involved your whole house is suddenly under scrutiny.
Nightly Rental Permits
Having unauthorized accommodation of any kind in a property that has a nightly rental covenant is a red flag. If you want to rent out the main house you must apply for a permit to rent out your property. This means that the Resort Municipality of Whistler (RMOW) will send their representative to your property to check the house plans against the original plans on file. For more on this please see the blog, Nightly Rental License. The RMOW takes the nightly rental permit seriously.
Seller’s Disclosure of Unauthorized Accommodation
Yes. This is a Material Latent Defect and must be disclosed. This is where you need an experienced, Whistler buyer’s agent as not sellers will automatically disclose.
Legal Recourse
Sellers are now legally obligated to disclose the existence of unauthorized accommodation. This now takes the form of a Material Latent Defect. However, their failure to do so may expose the buyer to significant financial exposure following the completion of the transaction. All the seller’s disclosures should be noted on the Property Disclosure Statement (PDS). Some sellers are careless when they complete the PDS. Furthermore, their listing agent may not check through the PDS for red flags prior to listing. In essence, a seller is under no obligation to complete a PDS. However, the seller is obligated to complete a Material Latent Defect document.
It is typically a term of the contract that the buyer accepts the PDS as is. This signed PDS now forms part of the contract. Even if the buyer has the ability to seek legal recourse against the seller, this is a time-consuming process.
Buyer Beware
It is important to be aware of what you are buying. Whether you buy a property with unauthorized accommodation or don’t will depend on your level of risk-taking.
If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me. I look forward to hearing from you.
It’s a Good Life in Whistler!
Marion
Marion Anderson Personal Real Estate Corporation
marion@WhistlerSkiinSkiout.com (604) 938-3885