Importance of property status - Conforming Vs. non-conforming?

[Nir]

How important is it to ensure properties I purchase are conforming (Vs. non-conforming)? I see many properties in Orillia such as duplexes and triplexes shown as "non-conforming" in MLS. In many cases they meet my system in terms of cash flow, transition area, etc..

What are the implications/potential issues and costs of a property being defined "non-conforming"? Are you avoiding purchasing non-conforming properties or do you not really care much about this status? THANKS.

 

[Thomas Beyer]

it means: IF the property were built today it would be non-conforming due to changed regulations (such as setbacks or house sizes or height restrictions) usually .. but it is always grand-fathered ... the issue is if you intent to change the property substantially in the future (say add a 3rd storey) you may have an issue with the city planning department in the future ..

If all you intend to do is buy and rent and upgrade modestely, say new paint or interiors .. you are fine and it is none of your concern !

 

[Nir]

Thanks Thomas.

 

[Nir]

Thank you Terri for the detailed summary of the topic. VERY HELPFUL! Cheers.

 

[mikecunning]

QUOTE (investmart @ Dec 12 2007, 10:49 PM) Thank you Terri for the detailed summary of the topic. VERY HELPFUL! Cheers.


Be aware, non conforming may also mean `unauthorised or illegal suite`! Generally, they are harder to finance and sometimes more difficult to resell.

 

[JeffSmith]

Non conforming, illegal, inlaw, nanny. They are all fine when a jurisdiction allows them to exist because of low vacancy rates or affordability(politics). However, if the zoning does not permit them to exist then 1 call from a disgruntled neighbour and they would be shutdown. The municipalities have no other option.

I had an offer on a 1/2 duplex earlier this year with a non conforming suite in the basement. The owner actually wanted me to acknowledge that the suite was illegal on the purchase contract. No thanks.