Mortgage Broker

riskybusiness MORTGAGEBROKER mbabc.ca summer 2015 | 25 dramatically increases the cost of these services. To keep these costs under control, sometimes there is tampering with the service metres. Electrical hums – e high draws of electricity together with the modifications and tampering with the electrical system can result in electrical humming sounds and power surges in the neighbourhood. Disconnected furnace exhaust and hot water tanks – To assist plant growth, furnace exhausts and hot water tanks may have been disconnected so as to allow carbon dioxide to filter out of the building. Added security – Bigger MGOs may have added security features such as cameras, motion detectors, flood lights and bars on windows and some doors. ese measures not only deter inquiring neighbours and persons who might break and enter, but can alert the operators of the MGO to investigators attending the property. Concealed interior – e previously mentioned tin foil on the windows and security systems can serve double-duty to conceal interior growing activities. MGOs will generally have all window coverings closed most, if not all, of the time. Building damage – e installation of the heating, lighting, venting and security equipment generally requires modifying or damaging the building such as by putting holes in the walls and foundation of the house. Garbage – Perhaps because generally no one lives at an MGO, the yard is oen not maintained or kept clean. ere may be excessive garbage on the property including discarded soil, pots, fertilizer, chemical containers, wiring and PVC piping. Mould – e high humidity present in an MGO assists the marijuana to grow but unfortunately also is an ideal climate to promote the growth of mould. is generally occurs on interior walls and ceilings (particularly in corners) and exterior surfaces near vents. Less snow – In snowy weather, an MGO can have far less snow on its roof as compared to other houses in the neighbourhood due to the interior heat escaping. No occupants – While a larger MGO sometimes will have an attendant/ sitter, oen nobody lives there. Either way, the purpose of the building is to be an MGO and not a residence, hence there is generally minimal furniture in the house. Odour – Marijuana plants emit a distinctive odour which is quite intense if there are a number of plants and the usual accompanying humidity. Takeaways Anyone having an interest in a property should use their skills and resources, as best as they are able, to detect whether an MGO exists or has existed at the property. ey should not be reckless or wilfully blind in allowing an MGO to exist in the property. Not taking these precautions can put them at risk of the property being devalued, difficult to market, difficult to mortgage and subject to forfeiture. Mortgage brokers who are lenders should be advised to attend at the property, either in person or by an agent who is knowledgeable as to indicators of an MGO, before entering into a new mortgage transaction and before agreeing to any renewals. e mortgage documentation should include the right of the lender to attend on the property to make periodic inspections and enter any structures on reasonably short notice. A mortgage broker who is not the lender may want to advise his or her client to take the same precautions.

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