By Dan Steward
Photo: Saanich Police
One of the most insidious dangers in the real estate market is the increasing inventory of houses used for production of illegal, toxic substances – notably methamphetamines. Crystal meth use has risen drastically since 2003, with the highest concentration of crystal meth-related deaths occurring in British Columbia. Meth lab seizures are rising for the first time since 2003, drawing attention to the problem of meth contamination, which can permeate drywall, carpets, insulation and air ducts, causing respiratory ailments and other health problems.
Many of us have read accounts of families who’ve bought their dream homes, only to experience unexplained illnesses, grapple with associated medical bills and ultimately make the discovery that the home was used as a meth lab, a fact not disclosed during the sale. In an extraordinary example of adding insult to injury, these homeowners are now liable for the tens of thousands of dollars that cleanup and detoxification require.
The health effects of meth contamination are frequently difficult to prove, and research is scant. But John W. Martyny, a meth expert at the National Jewish Medical and Research Center in Denver, says living in a former meth lab made children more likely to develop learning disabilities and caused long-term respiratory and skin problems. Even brief exposure can have severe effects, Martyny says. A 2007 study by the Denver centre found that more than 70 per cent of law enforcement officials who had inspected meth labs subsequently reported health problems.
Some regions have tried to fix the problem by requiring cleanup and, at the time of sale, disclosure of the house’s history. But the high cost of cleaning – $5,000 to $100,000, depending on the size of the home, the stringency of the requirements and the degree of contamination – has left properties vacant and quarantined, particularly in areas afflicted with meth use.
What about disclosure regulations? From a legal perspective, disclosures include patent defects, which are obvious, and also “latent” defects. These would not be revealed by a reasonable inspection. Although there is no implied warranty that a property is of any particular quality, if the seller knows, or could be expected to know that the buyer would not purchase the property if they were aware of the latent defect, the seller has a responsibility to disclose such defects to the buyer.
However, individual sellers can simply check the box that says “no” when asked if the house was used as a meth lab, and then disappear from sight. For those homes seized in police raids, there is often a series of transfers and sales, only lightly supervised, prior to sale at auction. In these cases, notice of use as a meth lab may simply fall away during the process.
Exerting best efforts to ensure a home has not been used as a meth lab is clearly the most prudent means of protecting your client, and yourself.
I believe a thorough home inspection is your best weapon to identify potential risks in a home. This means a thorough examination of the structure and systems including HVAC, electric and plumbing, plus walls, floors and attic and basement spaces. A professional inspection provides a clear, unbiased assessment of the home, presented in report at the time of the inspection, on the home’s condition. Pillar To Post now offers specific meth lab and marijuana grow house testing in certain markets and will expand to offer this service in additional regions in 2010.
The RCMP estimates there are 18,000 drug labs currently operating in the lower mainland of B.C. There are thousands more across the rest of Canada. You, as a Realtor, gain the greatest advantage by being aware of the preponderance of meth labs in the real estate market, and by guiding your clients on the safest ways to avoid these toxic risks.
Dan Steward is president of Pillar to Post home inspections, which has almost 500 locations in nine provinces and 43 states. 1-800-294-5591; www.pillartopost.com.
