Understanding the Property Assessment and Inspection Process

The City of St. John’s has received multiple inquiries about a property on Summer Street that has been profiled in a story by CBC NL.

Property inspection, assessment and permitting can be a complicated process and the City encourages anyone contemplating a property purchase to seek legal assistance and the advice of qualified professionals.

Understanding the Compliance Letter

As part of a real estate transaction, a purchaser or their lawyer may request municipal compliance information through a compliance letter. It provides certain information about that property such as zoning information and whether the property is located in a watershed, a development zone, or a heritage zone. A compliance letter also identifies if a property has:

• outstanding charges owing
• civic assessments
• building, complaint, plumbing or electrical files
• active planning and development files

The request for a compliance letter does not lead to a home inspection.

Provincial regulations do not require this. If a request for a compliance letter did trigger a home inspection, it is likely that many homes would not be able to be sold in a timely manner. The fact that a request for a municipal compliance letter does not trigger a home inspection is set out in every compliance letter issued:

“…the City of St. John's does not necessarily have full and up to date information. This request for information has not resulted in a search of Legal Department files or an inspection of this property.”

Understanding the Inspection Process

Rules around development, building codes and the need for permits and inspections of a property create a system that provides regulations for the benefit of the community. The system is based on the principle that it is the responsibility of individuals who make changes to their property to ensure that the necessary permits are obtained, and inspections take place when required.

Inspections staff are experts in their fields and can provide information about the applicable codes and City By-Laws that are in place to protect the occupants and property from risks.

Inspection services is a complaint-based or permit-driven service, which means that, inspections are triggered when a complaint is made or an application for a permit is submitted. Occupancy Permits are issued for new home construction and in some instances where there are substantial renovations, they are not issued with respect to the majority of renovation permits, unless there is a change in use for the property.

Understanding Property Assessment and Taxation

Properties within the City are assessed by our assessment team and taxes charged accordingly. It is important to note that taxing a property in the ‘residential’ category does not necessarily mean that the property is a house. For example, vacant land, may fall within the residential category.

The assessment team takes in all information available to make an assessment of a given property. Assessors are not qualified building inspectors. In the event the homeowner does not draw a permit for a renovation or a repair, this does not prohibit or preclude a proper assessment to be conducted.

Assessment is governed by its own legislation; in other municipalities outside St. John’s, assessments are conducted by an independent organization called the Municipal Assessment Agency. Although the City of St. John’s has its own Assessment division, they must follow the same rules which dictate that information gained or collected as a result of an assessment cannot be shared for any other purpose.

Working With the Property Owner

Contrary to what was reported, the City has not issued a ticket or charged the homeowner of 11 Summer Street with any violations of City Bylaws. We recognize the unfortunate situation that the current property owner finds herself in and appreciate the challenges faced in rectifying deficiencies.

As with all property owners in this circumstance, the City will work with the owner as they address the deficiencies.