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Professional Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

Trading Services

8. Tenant Occupied Properties

(b) Unauthorized Accommodation

Real estate licensees are to avoid advertising illegal suites as a possible source of revenue for homeowners. Section 4-7 of the Rules prohibits false or misleading advertising as follows:

A licensee must not publish real estate advertising that the licensee knows contains a false statement or misrepresentation concerning real estate, a trade in real estate or the provision of real estate services.

In order to avoid any confusion, licensees should use the following clause:

Properties Containing Unauthorized Accommodation Clause

The Buyer is aware that the property contains unauthorized accommodation and has been informed of the consequences of such ownership and the potential loss of income should the rental use be discontinued.

NOTE: Licensees should be aware that issues involving unauthorized accommodation often include construction or improvements to the property which could result in an order for demolition of the structure, a requirement by a municipal/city authority to upgrade to present bylaw requirements or for the removal of the addition and changes since the last inspection, the nullification of insurance, and a potential difficulty to mortgage the property.