Basement apartments in Brampton. Are they legal?

January 24, 2008 · 88 comments

So you’re looking to buy a home in Brampton with a separate basement apartment to lease out for extra income, but you have no clues as to the legalities of the basement. What exactly does “Vendor does not warrant retrofit status” mean? What issues do you need to be concerned about when purchasing a home with a basement apartment? Read on, and you shall find out!

What exactly defines a basement apartment?

A basement apartment is a self-contained apartment consisting of a room or rooms in a singe or semi-detached house and can be located in any part of the house, not necessarily in the basement. They have also been called granny flats, nanny suites, accessory apartments and second suites. In the City’s bylaw, they are referred to as a “residential unit”.

A self-contained apartment shall have a separate means of entry (which may be through another unit) a kitchen (or cooking area) and bathroom facilities. A self-contained apartment may be as small as a single room that contains all of the features listed.

However, if you rent a room in a house or a flat with a shared entrance, kitchen and bathroom facilities, this bylaw does not apply to you.

Are basement apartments legal in Brampton?

If you purchase a home in Brampton and the basement apartment was built after November 16, 1995, it is illegal. The only legal basement apartments in Brampton had to have been built prior to that date, and have had to been registered with the city before January 31, 2006 and/or have legal non-conforming status.

A single or semidetached registered home can only have one basement apartment. Homes that have been subdivided into more than two units are strictly prohibited unless the property has been specifically zoned to permit multiple units. It is extremely rare to find a house that has been zoned as a triplex!

What should I be watching out for when I am looking to buy a home with a basement apartment?

Lawyers or real estate agents such as myself can confirm the status of a basement apartment with the city in order to provide you with the right information.
Real Estate Agents are bound by code of conduct guidelines and must fully and fairly disclose all information about a property for sale. Homes with doubtful legal status are typically listed with the caution “Vendor does not warrant retrofit status”, and you may have to seek further legal advice before proceeding with the purchase of a home.

What are the risks of an illegal basement apartment?

Increased Liability – The onus is on a homeowner to meet established standards for a second suite. If anything should happen, such as a fire, the homeowner would be held liable due to failure to meet requirements.
Loss of Insurance Coverage – Having a rental unit in your home is a material change to your home. Non-disclosure of this change of use may in fact make your coverage null and void.
Limited recover of damage – An insurance policy is not responsible for rebuilding costs related to meeting current established standards. Your insurance company is only required to cover the costs of fixing your home back to the state that existed at the time your policy was made prior to any damage.
Prosecution – If you do not meet City codes it means that you are breaking the law. You run the risk of being charged and can face fines with a maximum penalty of $50,000 and/or a year of imprisonment on each count.
Financing – Income from an unauthorized basement apartment is generally not considered when qualifying for a mortgage loan.
Tenants – You are a landlord. You are obliged to maintain your basement apartment in good operating order and you must follow all fire safety laws. Tenants may apply for rent reduction where the unit fails to meet the prescribed municipal health, safety, maintenance and property standards.
Tenant Insurance – Your homeowner’s policy will not cover property owned by a tenant.

Can I legally convert vacant space in my home into a basement apartment?

NO! The City’s zoning by-law does not permit new basement apartments. If the basement apartment did not exist in your home prior to November 16, 1995, a home in Brampton cannot be legally converted. Furthermore, any home built after 1995 can never have an existing legal basement apartment.

In order to permit a new basement apartment, the Zoning By-law would have to be changed. Changing the Zoning By-law requires the submission of a Zoning Amendment application and fee ($7759.00) to the City’s Planning, Design and Development Department.

For more information on basement apartments in Brampton, you can visit the City Of Brampton’s website.

Tagged as: brampton real estate basement apartment

This post has 88 comments

Renee
Hello Lang, I recently purchased a house from a real estate agent. The basement has an apartment (complete with bathroom, full kitchen, etc.). At the time of purchase I thought it was a legal apartment due to the fact a real estate agent was the previous owner but based on some of your previous answers I can tell it is not legally registered. My mortgage broker is aware that I have this apartment but told me most apartments in Brampton are not legal so not to worry. I have also taken out extra insurance for the basement, had an electrician come in to fix any fire safety issues and made about $5,000 in renovations as I want happy tenants. I realize that regardless I am still at risk and can get charged but will have to take the risk as I am self employed and need the extra income (which is the reason I told my real estate agent to only look for houses with a basement apartment). I feel a bit duped as no one involved disclosed that it was not registered and I trusted all of them as they are all professionals in real estate. Since I will be renting it illegally, should I still declare the income with the CRA?

Parm
Hey Lang, Thanks for your valued information. I recently had a notice at my door for inspection by city stating that they suspect that we have dual dwelling in our house. We usually have friends visiting over and I am pretty sure our neighbours made a complaint about us thinking that we have people living in our basement as I always ask my friends to use the side door to enter. We are a family of five people and we have finished basement with washroom, kitchen, bedroom and living. When the inspector comes, would we get fined as we have a kitchen downstairs or he would just ask us to remove the stove. Do they fine us rightaway or they give us a chance to make the required changes. Thanks once again

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← Previous Comments

1 Mike April 30, 2009 at 9:16 pm: Hi Lang,
Just 1 clarification I require from you. Is it okay to have a single mother as a tenant. I was told that, if single mother ever go to the court against the landlord, then the landlord has to keep her for 6 months for Free? is it true and is it some kind of a law?
thanks in advance
2 lang May 1, 2009 at 8:16 am: Hi Al,

If the City is aware that you are illegally renting out your basement, they can send property standards inspectors to your house. You will be asked to evict your tenants and you can be fined.

Lang
3 lang May 1, 2009 at 8:21 am: Hi Mike

I have never heard of this before, but I am quite certain that no Ontario court would force a homeowner to allow any tenant to live rent-free, regardless of their circumstances.

Lang
4 Tara White May 1, 2009 at 8:29 am: Hi Lang,

Thanks for ansering the question.

I am contemplating a Class Action law suit against the city in public interest.

We should demand the following from the City:

Provide a way to legalize the basements for all those householders who are ready to modify their basements to meet fire safety standards.

The blanket ban on basement rental units, without any channel for legalization through meeting of safety standards, is grossly unjust and reeks of corruption in the Brampton City Hall. City Hall has most likely taken money from builder lobbies to impose this blanket ban…because legalized basements drive the prices of condos and rental apartments down.

City of Brampton does not have affordable housing for low income group people. Blanket ban on rental units in basements (even those meeting fire safety standards) is a gross exploitation of their situation to benefit construction profiteers.

Is there a Citizen’s Forum where we can take this complaint against the city?

Are there people here interested in exploring the possibility of Class Action law suit against the City of Brampton for closing door for legalization even when houseowners are ready to meet fire safety standards?

Thanks

Tara
5 Tara White May 1, 2009 at 9:03 am: Hi …I wanted to share the following here. Maybe we need a change in City Hall and vote for somebody who also listens to the poor of Canada.

http://www.torontoalliance.ca/tcsa_initiatives/affordable_housing_coalition/news.asp?articleID=1403

No room for poor, renters in Peel

By: Michele Henry – Toronto Star

Rapidly growing region opposes basement units but also lacks a plan for low-income tenants

Brampton Mayor Susan Fennell chuckled out loud at a recent city council meeting about Calgary’s plan to pay residents a whopping $25,000 subsidy to build basement apartments in their homes.

Banging her gavel, Fennell boasted that her municipality doesn’t need basement apartments to accommodate its bulging population, expected to grow from 330,000 to more than 750,000 by 2031.

“Brampton is far ahead in growth management,” Fennell said. “We’re not going to pay you to put in a basement apartment. We’ll fine you $25,000 if you put one in.”

Cheap below-ground accommodations may not fit Fennell’s vision of Brampton – nor the vision set for the rest of Peel, where stiff zoning bylaws have effectively prohibited creating any new rental units in single-family homes since 1996.

But with a 21-year waiting list for social housing, sky-high development fees and housing prices rising, tenant advocates say they could be one way to tackle the growing needs of a low-income population politicians seem inclined to ignore.

Roughly 55,000 people live in poverty in Brampton and surrounding areas, about 100,000 in Mississauga. An unofficial estimate five years ago tallied 30,000 people in Peel Region who get by “couch surfing” between the homes of friends.

Many more, because they can’t find better arrangements, live as illegal tenants and end up deprived of tenant rights, advocates say.

Vacancy rates in Brampton are 2.6 per cent – almost a full percentage point below Toronto – and well below a healthy rate of 6 per cent, says Jennifer Ramsay, a co-ordinator with the Advocacy Centre for Tenants Ontario. Low vacancy rates drive up housing costs.

Technically, it’s the regional government’s job to plan and build affordable housing, but progress at all levels of government has been slow.

A United Way report released last month highlighted Toronto’s growing poverty rate and warned that a lack of social service supports in the GTA’s 905 region will hit hard.

Brampton and Mississauga have no affordable housing plans, says Elaine Moore, a regional councillor from Brampton. Nor does Peel.

What good would plans be anyway, asks Keith Ward, Peel’s commissioner of human services. “You can plan all you want, but if you don’t have any money, forget it,” he says. Of course, without a plan in place there’s no hope of getting assistance from the federal or provincial governments.

There may be some hope of a turnaround with the recent decision at Peel Region Council to hold on to the full amount of a financial windfall coming from a phase-out of the hated “Toronto tax” – money the regions are forced to send Toronto to help with social services costs – and apply it to local social needs instead of, say, fixing roads or offering tax relief. The financial bonus to the region is $10 million this year, rising to nearly $61 million by 2013.

But in a region where owners far outnumber renters, finding the political will to do something about the plight of those who can’t afford to buy will remain difficult.

Beth Walden, staff lawyer at Peel and Dufferin County Legal Services, believes banning basement units doesn’t help. Not only are they cheaper to rent, they can help first-time buyers pay the mortgage.

“It’s a way of allowing some struggling young families to afford their homes,” she says. “There are landlords who could create affordable housing, but they don’t because of the bylaw. Then there are others willing to flout the law.”

That creates a host of different issues. Walden’s clinic is bombarded with people cheated or evicted on a landlord’s whim because they aren’t covered under the Residential Tenancies Act.

The act doesn’t provide for those who share a bathroom or kitchen with the landlord. While it does cover tenants in illegal apartments, the act doesn’t do much but require a four-month eviction period.

Sean Gadon, director of Toronto’s Affordable Housing Office, paints a different picture in Toronto, where the 50-50 ratio of renters to owners means having enough vacancies in acceptable housing is high on the political agenda.

Under the city’s “housing first” policy, land has been made available, development fees waived, and capital incentives created to help non-profits and the private sector fund low-rent developments.

“Our approach in Toronto is that everybody should play a role,” Gadon says.

Terry Edgar, executive director of Mississauga Community Legal Services, said there has been no significant affordable housing built in Mississauga since he started in 1979. While there’s concern about homelessness as Toronto experiences it, there’s been little response to the problem that already exists, he said.

John Corbett, Brampton’s planning commissioner, says social housing is Peel Region’s responsibility, though it may need to grapple with the province on funding.

With a hefty tax burden already loaded onto Brampton citizens, Corbett doesn’t feel they should have to shoulder more to provide tax breaks for organizations looking to build “any further housing.” Decreasing development fees or waiving property taxes as incentives to build affordable apartments just isn’t in the cards, he said.

Keith Ward, Peel’s human services commissioner, would like to see a formal program – perhaps even cash incentives like Calgary’s – offered to create affordable basement apartments that meet safety codes.

A break on development fees would help: currently, they’re nearly $30,000 on every Brampton dwelling – prohibitive to those who might build affordable homes.

Ward believes that instead of trying to shift responsibility, all the players, including cities, should get on with finding a solution.

“It’s in everyone’s interest to make sure we have places for everyone to live,” he says.
6 Pavneesh May 6, 2009 at 11:12 am: Hi,

I bought a house recently which was built in 2001.

It has a finished basement with full washroom and one small room but no kitchen.

It has a separte enterance thru garage.

I like to increase the size of the room and also I like to have more cabinets in the living room of the basement. Can I make a kitchen with no stove

Do I need a permission from the city to do this?

Please advise

Pavneesh
7 lang May 9, 2009 at 10:42 am: Hi Pavneesh

Not having a stove downstairs is definitely a good idea. However, their definition of an illegal basement apartment is one which is a separate dwelling unit that includes any means for a person to live independently. That means if you are living in a basement with a separate entrance and are able to cook your own food, shower, and essentially live on your own, the City can take issue with it.

Lang
8 Kelly May 19, 2009 at 3:03 pm: Hi there,
I purchased a house with an illegal basement apartment in 2006, the MLS listing showed the house with a basement apartment – at time of closing my lawyer informed me that it was not registered with the city. I am a single mother trying to get by and I purchased the house with hopes that I could rent out the basement, I would like to have the unit inspected and make it as safe as possible for any tenants as well as my baby and myself, with this STUPID by law they are pushing us to break the law, there is another house on my street exactly the same as mine and their basement apartment is legal- the city wants me to prove that the unit was built before 1995 – how am I going to do that?
I am trying very hard to legalize my basement apartment, but I am afraid to get it inspected just incase they make me dismantel it, I have no choice but to rent it out illegally or I may lose my house, What can I do? How is this fair?
9 lang May 20, 2009 at 11:55 am: Hi Kelly

Please check your email. Thanks.

Lang
10 Steve May 20, 2009 at 2:54 pm: Hi there,

I purchased a home in Mississauga in 2004, complete with a basement apartment. Since then I have been using as such. Recently we were served notice that a complaint had been filed (by whom I do not know) and that an inspection would be required. Upon the inspection we were told exactly what has been mentioned in previous posts.

Here is a little background. The house was built in 1985 and I am fairly certain that the basement apartment was done shortly there after. The problem is how do I prove that? If I can’t get a hold of the previous owner and the apartment was never registered, what are my options here? Is there anyway to get an inspection that somehow would “timestamp” the actual construction/completion date? Or is the “registration” the underlying factor? I have had a tenant for 4 years now and this has hit us all like a ton of bricks. They want us to rip out the basement apartment, but I am refusing to do.

Any advice?

Cheers,
Steve
11 Anthony Troung May 21, 2009 at 4:22 am: WE have a lot of illegal basement apartments in our townhouse complex, in Brampton.

You said they can refuse entry to the city enforcement officers.

My question is, how are we going to enforce the law if no one can enter their home for an inspection ?
12 lang May 21, 2009 at 11:16 am: Hi Steve

The best thing to do in your case is to contact the City Of Mississauga, as the by-laws I mention above are relevant to Brampton.

Lang
13 lang May 21, 2009 at 11:19 am: Hi Anthony

You’re correct. The reality is that most basement apartments in Brampton are illegal by law. The only thing I can do is try to present the information as I find it. Some homeowners will choose to exercise their right of refusal, while others will comply. It’s definitely a growing issue here in the city.

Lang
14 Anthony Troung May 23, 2009 at 9:49 am: Hello Lang,

I can’t get home insurance. My house is aluminium wiring.

It will cost$7,000 to $10,000. Too costly.

Any suggestion?
15 Ken June 16, 2009 at 2:19 pm: Hi Lang,
I purchased a house with a basement apartment in 2003 which was already completed and with a seperate entrance. I am retired and single with no permanent job and am trying to get by. I bought the house with my life savings and was hoping to rent out the basement for the extra income. How can I ensure that I will not be victimized by the city’s stupid law which in fact helps no one?
If the cost is not too high I would prefer to legalize my basement apartment. However, with all the scare of inspectors I don’t feel secure going to the city for help. I have no choice but to rent it out illegally or I may lose my house. What can I do?
16 lang June 23, 2009 at 11:41 am: Hi Ken

Unfortunately, if the basement wasn’t built before 1996 and was not legally registered with the City, there is no other way to have it legalized. Currently, Brampton no longer registers legal basements.

Lang
17 mazhar June 24, 2009 at 1:27 pm: I look to make my basement legal , Lang can you assist ?
18 lang June 24, 2009 at 2:32 pm: Hi Mazhar

Unfortunately, Brampton no longer allows legal basement apartments to be built or registered.

Lang
19 rhonda June 25, 2009 at 10:12 pm: Hi Lang,

I’ve read your responses regarding landlord/tenant relationship and living in an illegal basement. I currently share a detached home with additional family members, we have a large family and have a “basement apartment” which we use as additional family space, this is not rented. We have now been asked to have the dwelling assessed by the by law enforcement team, what will be the possible outcome after they assess the home ?

Awaiting your kind response
20 lang June 27, 2009 at 5:14 pm: Hi Rhonda

Make sure to prove that both families are sharing the entire house and facilities, as well as entrances/exits. You should be fine if you can.

Lang
21 Sonora July 13, 2009 at 2:11 pm: Hi there,
I am renting a room in my house out to a girl. It’s month-to-month lease. At the begining I got an agreement signed from her saying that in order to terminate tenancy either she or I have to give each other 30 day notice at the begining of the month. Now I want to give her 30 day notice this Aug 1st. Is there a possibility that she may refuse to move out even though I am giving her 30 days notice as per the agreement signed by both of us?. Or do I have the right to evict her after 30 days of giving her notice?. I need my space back for personal reasons.
Your input will be appreciated.
Thanks,
Sonora
22 lang July 20, 2009 at 2:06 pm: Hi Sonora

Do you anticipate there being a problem? If a tenant really doesn’t want to move, they can create a lot of problems for landlords, regardless of agreements in place. Have you spoken to her yet?

Lang
23 annil July 28, 2009 at 12:54 pm: Hi,

I purchased a semi being built this year and it comes with a partially finished basement. There will be a bedroom and general area, however there will be no stove. The entrance is shared; can the city find fault with this?

Thanks!
24 Corey July 28, 2009 at 5:28 pm: First and foremost I would like to say thank you for everything I have learned so far from your responces to previous threads. I cannot believe you dont charge, society needs more people like you.
Anyways my question is similar to kelly’s, but unfortunatly your responce was to “check her email.” My plan is to buy a house that consists of two apartments, fix them up, and sell for a profit. The current occupants say they bought the house 10 yrs ago and have rented out the basement the entire time since. This lady does not know whether the apartments are legal, nor can she tell me who the previous occupant was. How do I confirm that the renos were done prior to 1995? As well is their anywhere to aquire concise guidlines as to other “legal apartment” requirments? Certainly would be nice to sell the house with legal apartments.

thanks again, keep up the great work

Corey
25 lang July 28, 2009 at 5:31 pm: Hi Annil

You’ll be fine, there is no issue.

Lang
26 lang July 28, 2009 at 5:34 pm: Hi Corey

Thanks for the kind words. The only way you can really determine the legality of the basement without any documentation is to approach the City and search their records. You really want to be sure of the status of the basement apartment before you make any kind of commitment. If you’re just planning to flip the property, you probably won’t have any trouble selling it, but the risk still remains. Check with the City if you want to certain.

All the best,

Lang
27 annil August 28, 2009 at 6:37 am: Thanks Lang for your kind response! One thing I did not mention is that my basement also has a bathroom.

So, there is a bedroom, general area, and bathroom, however the house’s entrance & kitchen are both shared. Does this seem “safe” with the city?

Thanks again for your great work.
28 Hemant August 29, 2009 at 8:12 am: Good day, I purchased my present home in Brampton about 4 years ago. The house has an illegal apartment with separate enterance put in buy the builder. I no longer wish to have this burden on my head and want my tenants to leave. I have asked them to leave but they have told me they can’t leave with one income etc etc. Anyhow I was wondering it the “Notice to Terminate Tenancy” N12 form is the right way to go? Since it is an illegal basement can I use a legal route to get the tenants out? I’m at the point where I’m thinking of getting my neighbour to file a complaint about my illegal apartment so that they are evicted. Can you tell me what the approx fine is for a first time offence? Can you please suggest the best route for me? Thank you kindly.
29 lang September 8, 2009 at 1:28 pm: Hi Hemant

You can refer to this page here:

http://www.ltb.gov.on.ca/en/STEL02_111286.html

However, in your case, I would seriously consider seeking some legal advise.

All the best,

Lang
30 sumit kohli September 21, 2009 at 11:11 am: Hi ,
I have a basement apartment that i rented few months back.I had to kickout the tenant becuase he was real bad and seems like he did complaint to the city.
Now the basement is being used by me personally and has been vacant.
I recently got a notice from the city for verification,what should i don, and what are the consequences,do you think they warn and leave you for the 1st time.
Thanks,
Bob
31 jamie October 26, 2009 at 7:54 am: Hi there

I am in Hamilton. My house was built 40 years ago. There is a separate entrance and a washroom in the basement. I am considering installing a kitchen in the basement to rent it out.

Is there any risk involved in calling the city of Hamilton and giving them my address to check the zoning bylaws? Will it sort of tip them off and will they follow up somehow?
I am not doing anything illegal, and I don’t intend to, I just don’t want any added trouble.

Thanks
Jamie
32 lang October 26, 2009 at 1:38 pm: Hi Jamie

As Hamilton’s by-laws are different than Brampton, I can only suggest you check your municipality’s main website or call them and ask for the property standard’s department.

All the best,

Lang
33 Susanna January 19, 2010 at 3:25 pm: Thanks for all the information you provided to everyone. From the reading of the postings, looks like it is ok to rent out the finished basement as long as there is no kitchen. I just bought a bigger house. The basement is 70% above ground and has a bathroom , a homeoffice, and a open living area. There is no kitchen in the basement. Can I still rent it out and have the familiy to share with me the kitchen and the entrances? The side entrance is built by the builder. If it is deemed illegal suite, I guess we can not report rental income to CRA.

Thanks,
Susanna
34 lang January 21, 2010 at 10:23 am: Hi Susanna

According to the definitions outlined in the by-laws, if it’s not a separate dwelling unit with it’s own separate entrance, you should have no problems.

All the best!

Lang
35 Chandra February 5, 2010 at 2:31 pm: Hi Lang,
Thank you so much for the advice given in previous posts. The posts encouraged me to share my own problem with you. I bought a house in December 2009 in Mississauga. The house was built in 2002, so there is no chance that it will have a legal basement. Now the problem is, the basement was already rented by previous owners to a family of 3. We thought that since the rent will be a good source of income, did not ask for vacant possession of the house during closing. Now the tenants who were already living in the basement have started acting like they are the real owners of the house. My wife stays alone in the house with my daughter. I work in the middle-east, so I hardly come to Canada. These tenants are now harassing my wife and daughter. They think that my wife (n daughter) are new to the country, and that they can manipulate her. Its been only a couple of months, but there have been so many arguments between my wife and the tenants. My wife cannot sleep in the night due to their terror. She has asked them to leave if they don’t like staying at our house. Now the problem is, we did another mistake of not signing any lease with these tenants. Now they have come up with an old lease signed between them and the previous owners. This lease says they can stay in the house uptil July. Now I badly need your advise as to what should my wife do. Is the lease signed with a previous owner valid? If yes, what can be done. There has to be a way out. My wife is a cancer patient, she does not deserve this. Kindly help.
Thanks again.
36 lang February 5, 2010 at 3:40 pm: Hi Chandra

The old lease agreement between your tenants and the previous owner is no longer valid. However, since upon closing you allowed the tenants to stay and rent the basement, you assumed their tenancy. Because there is no formal lease agreement between you and the tenants, they are on a month-to-month lease basis with you.

What this means is that you can serve them a notice with 30 days notification that you are taking back your basement apartment – based on the fact that you can no longer legally rent out the basement as per City by-laws. In the case of your tenants causing you distress and making living conditions unbearable for you as landlords, you may actually be able to ask them to leave with 10 days notice with this form. I would highly suggest you explore all your options as a landlord here:

http://www.ltb.gov.on.ca/en/STEL02_111286.html

All the best, Chandra.

Lang
37 Parm February 5, 2010 at 4:57 pm: Hey Lang,
Thanks for your valued information. I recently had a notice at my door for inspection by city stating that they suspect that we have dual dwelling in our house. We usually have friends visiting over and I am pretty sure our neighbours made a complaint about us thinking that we have people living in our basement as I always ask my friends to use the side door to enter.
We are a family of five people and we have finished basement with washroom, kitchen, bedroom and living. When the inspector comes, would we get fined as we have a kitchen downstairs or he would just ask us to remove the stove.
Do they fine us rightaway or they give us a chance to make the required changes.
Thanks once again
38 Renee March 5, 2010 at 11:19 am: Hello Lang,

I recently purchased a house from a real estate agent. The basement has an apartment (complete with bathroom, full kitchen, etc.). At the time of purchase I thought it was a legal apartment due to the fact a real estate agent was the previous owner but based on some of your previous answers I can tell it is not legally registered. My mortgage broker is aware that I
have this apartment but told me most apartments in Brampton are not legal so not to worry. I have also taken out extra insurance for the basement, had an electrician come in to fix any fire safety issues and made about $5,000 in renovations as I want happy tenants. I realize that regardless I am still at risk and can get charged but will have to take the risk as I am self employed and need the extra income (which is the reason I told my real estate agent to only look for houses with a basement apartment). I feel a bit duped as no one involved disclosed that it was not registered and I trusted all of them as they are all professionals in real estate. Since I will be renting it illegally, should I still declare the income with the CRA?