In the August 2012 Real Estate Update July home prices were on the rise and basement apartment legalities were in question. Mold can be a major issue in homes, so we have provided some helpful tips on how to identify it, how it's growth is affected and what exactly it is.
1. AUGUST 2012 REAL ESTATE UPDATE
The average price of a resale home in the GTA in July was From a volume perspective, the month of July produced
$476,947 - which was up by a respectable 4% versus the a 1% decline in sales (7,570 transactions versus 7,683
July 2011 average price of $458,646. It is interesting to in July 2011). The sales decline was led by the condo
note that the MLS® Home Price Index (MLS® HPI), which apartment segment (-10%) while, at the opposite end
provides an apples-to-apples comparison of benchmark of the spectrum, the townhome segment posted a very
home prices from one year to the next, was up by 7.1% robust volume increase of 15%. The very strong annual
on a year-over-year basis. The variance between these sales growth in the first half of 2012 and an earlier peak
two price growth rates is accounted for the fact that the in sales this spring compared to 2011 help explain more
mix of homes sold in July 2012 versus July 2011 was moderate sales this summer. The new more stringent
substantively different. As a result, the MLS® HPI likely CMHC mortgage lending guidelines (which became
offers a more accurate reading on actual price growth for effective on July 9th) and the continued weight of the
this particular period. However, price growth has definitely additional upfront cost of the City of Toronto land transfer
moderated versus recent months due to a much better tax have also likely prompted some households to put
supplied market. their buying decisions on hold.
GTA AVERAGE RESALE PRICE GTA RESALE HOME SALES
8 9 10 11 12 8 9 10 11 12
$540,000 12,000
2011 2012 2011
$520,000 10,500
2012
sale Home SalesGTA Resale Home Sales
$500,000 9,000
$480,000 7,500
$460,000 6,000
$440,000 4,500
$420,000 3,000
$400,000 1,500
JAN MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOV
James Metcalfe BROKER
416-931-4161 Royal LePage Real Estate Services Ltd.
Johnston & Daniel Division, Brokerage
477 Mount Pleasant Rd., Toronto, ON M4S 2L9
www.OurHomeToronto.com | Service@OurHomeToronto.com
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2. BASEMENT APARTMENT LEGALITIES
Basement apartments also play an important role in meeting Fire containment refers to a building’s ability to contain a fire in
demand for housing throughout the Greater Toronto Area and if the unit where it started. Walls, floors, ceilings and doors are
you have ever listed a property with one, you may be familiar rated based on how long they will survive a direct fire before
with the “Seller does not warrant retrofit” clause. Second suites burning through. The typical requirement is a rating that affords
can cause confusion for homebuyers and REALTORS® alike, but a 30-minute separation between the units. Drywall and plaster
this doesn’t have to be the case. ceilings for example are acceptable, but they must be continuous
so that joists are not exposed in any room. By contrast,
According to noted home inspectors Carson Dunlop, achieving a suspended ceilings are not acceptable.
“legal” basement apartment involves five areas of consideration:
bylaw permissibility; compliance with the building, fire, and Means of egress refers to the occupants’ ability to exit the
electrical safety codes; and registration. In short, if a listing house. Ideally, units should have their own exits. Units that share
indicates that a property has a retrofit basement apartment, it a common exit are allowed if the common exit is ‘fire separated’
must meet municipal bylaw requirements, have a Certificate from both of the units with a 30-minute rating. If it not rated as
of Compliance to verify that it has passed fire and electrical such, it can still be used provided that there is a second exit from
inspections, and be registered with Municipal Property each unit and the fire alarms are interconnected. To be considered
Standards. Additionally, if it is newly constructed, it must meet an acceptable second exit, a window must have an opening of at
Building Code requirements. least 600 square inches, with the smallest dimension being 18
inches; the windowsill must be within three feet of grade; and
Identifying whether a municipality’s bylaws permit basement
basement window wells must extend three feet out from the
apartments and if any special conditions apply is the first step
house wall, to allow room to crawl out.
in the process. Since 1995, municipalities have had the authority
to enforce their bylaws with respect to basement apartments; The fire detection area of compliance requires that all units have
however, units that existed prior to November 1995 are exempt smoke alarms. Smoke alarms do not have to be interconnected
from meeting local bylaw requirements. unless the fire separation to the common exit area does not have
a 30-minute rating. Some municipalities may also require carbon
The Building and Fire Codes are related in that the Fire Code is
monoxide detectors.
a subset of the Building Code. There is, however, an important
distinction between them. The Building Code, which prescribes Electrical safety refers to the required inspection by the Electrical
minimum requirements for the construction of buildings, for Safety Authority. As with the fire department’s inspection,
the most part applies only to the day the house was built, not deficiencies that the Electrical Safety Authority identifies must
retroactively. The Fire Code, which prescribes construction and be addressed. In general, an apartment’s minimum ceiling height
safety issues related to how a building is required to perform must be 6 feet 5 inches; its entrance door must be at least
should it catch fire, does apply retroactively. In 1994, the provincial 32 inches by 78 inches; bathrooms require either a window or
government set new Fire Code rules with which all basement an exhaust fan; and if there is a parking spot for one of the units,
apartments, new and existing, must comply. A unit upgraded to there must also be a parking spot for the other unit.
comply with the Fire Code is called a “basement retrofit” The fire
.
department must inspect all basement apartments and when Once bylaw and code requirements have been met and certified,
any deficiencies have been corrected, as is required, it will issue homeowners can register the basement apartment with
a certificate to verify compliance. Municipal Property Standards.
The Fire Code involves four key areas of compliance: fire Bear in mind that if you are planning to construct a basement
containment, means of egress, fire detection and alarms, and apartment, you must also apply for a building permit and comply
electrical safety. with today’s Building Code.
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This article was sourced from the Toronto Real Estate Board.
3. WHAT YOU NEED TO KNOW ABOUT MOULD
Moulds are forms of fungus (mildew, yeast and mushrooms are What is an “amplification site”?
other forms of fungus) that grow indoors and outdoors. People
As mentioned above, buildings are not sterile; the presence of
are exposed to mould spores (i.e. airborne “seeds”) daily in the
mould spores is very common in most buildings. It is interesting
air they breathe; however, sometimes moulds grow excessively
to note that the mere presence of mould spores in a building is
in certain areas called “amplification sites” (see below for further
not a concern; the concern arises when mould areas have grown
information) and can cause different types of illnesses. Some
in a building. When areas in a building have suitable nutrient and
moulds are more hazardous than other moulds and different
moisture content that fosters mould growth, the area is called an
people have different responses to mould exposure. In particular,
amplification site.
those with allergies, existing respiratory conditions or suppressed
immune systems are especially susceptible to health problems
Can mould be easily identified in homes by a visual
from mould exposure. Additionally, infants and children, pregnant
inspection?
women and the elderly can be sensitive to the effects of mould
exposure. Some people that are exposed to mould experience No. Past studies have indicated that up to 90% of mould growth
allergic reactions, with symptoms similar to hay fever and the is not visible at the surface. Certain school boards have found
common cold but that last for longer periods, while others can a very poor correlation between the results of visual (surface)
experience aggravation to asthma. Researchers have identified inspections and subsequent invasive inspections in portables
that some fungi in indoor environments can induce allergic in Ontario. Certain guidelines state that invasive inspection is
and irritant response, infectious disease, respiratory problems, necessary to make a complete assessment of the extent of
hypersensitivity reactions and organ toxicity. In addition, some mould contamination in a building.
moulds produce chemicals called mycotoxins, which can cause
flu-like symptoms. It should be noted that the causes and effects HELPFUL TIP
of mould exposure on people are not very well understood. In Moisture is one of the key factors that affect mould growth.
some cases, health problems that are attributable to mould are There is very little time after a flood to prevent development of an
temporary and can be controlled by limiting exposure to moulds. amplification site. Buildings are not sterile and pre-existing mould
What factors affect mould growth? spores will begin to develop rapidly with the proper nutrient,
moisture and temperature combinations. It is considered good
Several factors affect mould growth, including: practice to remove water very quickly (within 24 to 48 hours)
• Nutrient availability - nutrients absorb moisture to maintain after flooding. Surface moisture should be reduced to below 70%
a favourable environment for mould growth, and include relative humidity as soon as possible to reduce the potential for
many surfaces such as soil, dirt, wood, cellulose (paper, mould growth.
ceiling tile, jute carpet backing, cork, pipe wrap), some
forms of insulation, fabric, oil, etc.
• Moisture content - the amount of moisture in a material
influences how an organism can support growth.
Moisture sources include condensation in humid rooms,
on windows, walls, unheated closets, dampness under
carpets and on shower curtains, and periodic wet sections
in duct work of air conditioned ventilation.
• Temperature - Temperature is also a factor that affects
mould growth; moulds typically require temperatures
between 5°C and 38ºC to grow.
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This article was contributed by AmeriSpec Canada, a leading home inspection company. Please visit them online at www.en.amerispec.ca.