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We're looking for a house with a basement suite or 'mother-in-law' suite (for an actual father-in-law!), and I'm surprised how many realtors advertise them as 'illegal suites'?? Is that normal? lol.
The agents are fulfilling their responsibility to disclose material fact to be fair with buyers.
"Illegal suite" seems it may be a localism for such areas.
May be a zoning or building code violation.
In our local MLS, listing agents are supposed to disclose any known unpermitted areas, including square footage of those areas, in the public Remarks section of a listing.
I would expect to see a note like: "Basement finish, 360 SF, was done without permitting."
AKA: "Illegal suite" in your area.
In many locales a suite for non-rent paying family member is different then a suite one can rent out. This might be the distinction they are trying to make.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Yes, that's the short way to disclose an un-permitted second unit so the buyer can't come back and complain if they cannot rent it out, or do some future work requiring a permit and are made to change it back.
I see that's a big deal now in Vancouver area. Secondary Suites are allowed but there is a secondary suite service fee in some areas. There is also only one secondary suite allowed per home. There are requirements in certain areas...a parking space, only using a certain percentage of the house for the suite, etc. Lying is an issue. It's a big official thing to have the secondary suite designation and something of a process to remove this by inspection when the suite is no longer desired.
And one indicator of having a secondary suite is the stove...same as some areas in the U.S. Some people make do here with a microwave then.
That said, the issue often comes up of the difference between having a grown child or elderly parents or grandparents living with the homeowner and allowing them their private space....and having a secondary suite charging unrelated tenants for extra income. Big difference. So when this service fee came up in Canada there were issues with it's fairness.
In various places in the U.S. there is the requirement of three unrelated tenants in a home....3 bedroom or 6 bedroom...same thing by county. Unfair too.
I wonder why the listings are being advertised as having something illegal about them, although I also understand for some in Canada "illegal suite" is more of an expression for "Secondary Suite" and not always an indicator of "look here, taxman, come and inspect this one." Not that the illegal aspect should be unmentioned but, rather, why rent a house or who would buy a house with something illegal about it.
However, things are really tightening up. Landlords are fined and tenants are out of luck sometimes without any recourse.
In this area, Long Island, they are advertised, "MIL suite or apt with proper permits" unless of course they already have proper permits then they say "legal MIL suite or apartment". Oh I forgot, the other euphemism is basement with outside entrance....usually means apt or apt possible but no permits yet obtained.
My daughter's house in MA had one. The only access to it was from the home's kitchen. It had a living area, a bedroom, an eat in kitchen, and a full bath/laundry. It was quite spacious.
The town had various restrictions (not all of which I remember), but basically the town intent was to prevent it from becoming a rental unit. If I recall, one of the people living in it had to be related to the home owner. It could not be rented but there were no restrictions on the family member helping out with expenses.
I know these things can vary widely but it seems to me the main point is if it does not have a separate entrance/exit though I have seen configurations where it does. One was a lower level with sliding glass doors to a patio. I was told as they are sliding glass doors they do not constitute a separate entrance/exit thus no issues. Call it what you want, but still not rentable.
I think the term in-law suite is becoming the standard term for such an arrangement.
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