Avoid secondary suite shenanigans by ensuring the suite is legal prior to advertising it as such on the MLS® System.
REALTip:
It’s safest to describe the area (don’t reference it as a suite) and let the buyer draw their own conclusions about how they might want to use the space based on their risk tolerance and independently obtained ideas.
Remember, the public, including organizations and municipalities, can see information in the public remarks. Including public remarks about an illegal suite might result in the homeowner facing enforcement from the municipality. This may expose the listing agent and brokerage to fault if a homeowner feels enforcement against them is a result of public advertising.
What makes a secondary suite legal?
If you’re working with a client whose property contains a secondary suite, make sure to confirm the legality of the suite with the municipality.
For properties in Calgary, if the secondary suite is on the City’s Secondary Suite Registry, it’s legal. The suites on this list have obtained all necessary permits and have been inspected to meet Alberta’s Safety Code requirements
Keep in mind, this registry is updated as new secondary suites are approved by the City. Sometimes, the homeowner will have all the necessary paperwork in place and be at the final stages of registration, but the City might not have added the suite to the registry. If your seller indicates it’s a legal suite, but it’s not yet listed on the registry, call the City to learn more.
For properties located outside Calgary, contact the local municipality to better understand bylaws pertaining to secondary suites and confirm if a property's suite is legal and complies with all requirements.
If the municipality has confirmed its legality, you can safely select “Suite – Legal” when inputting the suite information within the MLS® System. If the municipality indicates it doesn’t meet the requirements of a legal suite, the secondary suite should not be advertised as legal; in this case, make sure to select “Suite – Illegal” on the MLS® System.
Remember, only suites listed on the registry in Calgary or that have been otherwise confirmed to be legal by the municipality which it is in can be advertised as a legal suite on the MLS® System.
FYI: Legalizing an illegal suite
If a property in Calgary contains an illegal suite, the City of Calgary’s amnesty period to legalize existing suites has been extended until Dec. 31, 2023.
What this means:
- Only suites that were built with certain features (e.g., a separate entrance, a separate kitchen and bathroom) prior to March 12, 2018, are eligible to become legalized under the existing legal suite criteria. All other suites are deemed new secondary suites.
- Certain fees will be waived to legalize an existing suite, such as the development permit and suite registration fee.
- The City of Calgary continues to enforce illegal suite complaints through investigations. If a suite is illegal and a complaint is lodged resulting in an investigation by the City, the homeowner has two options:
- Legalize the suite within a certain amount of time; or
- Remove all traces of the illegal suite, including all kitchen appliances (large and small), as well as kitchen cabinets, etc.
- Once the amnesty period has ended, all non-registered suites will be considered as a new suite, and different rules will then apply to register the living space as a legal secondary suite.
- Keep in mind that if a homeowner wishes to legalize an area deemed to be a new (non-existing) suite, the living space must contain a separate heating source (i.e. furnace) from the rest of the home. Other additional criteria may apply.
For more information secondary suites, please visit the City of Calgary’s website.
If you have any additional questions about this topic, please email CREB® Member Practice at crebmp@creb.ca.
{ 0 comments…}