Let’s discuss secondary suites, zoning laws, and other factors influencing REIX insurance and listing descriptions.

Adding a secondary suite to your property can be a smart move, whether for rental income or accommodating family members. However, it is important to know the ins and outs of advertising a suite.

Here are three things to remember: 

1. If your comments are about existing suites, you MUST use the word “legal” or “illegal” to describe the suite each time the word suite is used. This aligns with REIX’s policy on necessary disclosures to avoid voiding your insurance.  
2. If your comments are about altering the property to add a suite, such as “easy to suite,” “convert the garage to a suite,” or “make the basement a mortgage helper,” the listing agent must make it clear that the municipality ultimately decides any alterations. The phrase “subject to city approvals and permitting” must be used if commenting on future suite development.
3. Be careful about advertising income, especially on illegal suites. Illegal suites are not eligible for rent collection, and, to quote REIX, “If you are enticing someone to purchase a property under false pretenses, that is fraud, plain and simple.”

Avoid jargon and be clear:

• CREB® requires all remarks about a property to be complete and accurate and reflect its current use.
• If the word “suite” is used in the remarks, the listing is only considered complete if the word legal or illegal is used each time the word “suite” is used.
• When creating property listings, it is essential to avoid jargon related to rezoning or specific zoning designations (e.g., RCG, R-CG, RMX, HGO). Buyers can’t be expected to know what all the different zones mean.

What is a secondary suite?

• A secondary suite is a self-contained living space within a property. It typically includes a private kitchen, bathroom, and separate entrance.
• These units can be located within the main dwelling (such as a basement apartment) or detached from it (like a laneway house or coach house).

Legal vs. unauthorized (illegal) suites:

• Not all secondary suites are legal. Many existing units were created without proper authorization or fail to meet legal requirements.
• Property owners must obtain authorization from their municipality and adhere to strict building codes to create and maintain a legal secondary suite. Legal suites in Calgary are eligible for a City of Calgary secondary suite sticker to show their legal suite status—secondary suite registration stickers never expire.
• However, suite owners must maintain compliance with safety codes and any subsequent changes in regulations.

Calgary’s secondary suite registry:

• In Calgary, a secondary suite is considered legal if it’s on the City’s Secondary Suite Registry.
• The registry includes suites that have obtained all necessary permits and meet Alberta’s Safety Code requirements.

Legal considerations:

• Always verify the legality of any existing secondary suites or potential additions with the municipality. Safety and compliance are crucial.
• If the city up zones to RGC, it’s crucial to understand how this change might impact the property’s use and value. 

If you have questions about a property, consider contacting the relevant municipal authorities for accurate information. Don’t risk losing your REIX coverage.

Looking to learn more? Join us on May 8 for our City of Calgary: Secondary Suites webinar. Click here to register.