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REAL ESTATE about potential liabilities. Joseph Grignano, a Toronto-based lawyer specializing in commercial leas- ing and a consultant with Blake Cas- sels & Graydon LLP, notes that 40 per cent of the grow ops raided by Toronto police in recent years were located on some form of commercial real estate, either commercial buildings or highrise apartment buildings. These operations pose obvious risks of fire, health, and safety that could result in huge civil li- abilities in situations where a landlord is found to be in any way complicit or negligent. Furthermore, he says, provin- cial and municipal authorities in many jurisdictions are now empowered to take drastic action in ordering cleanups, or even demolition, of contaminated properties, so a landlord may be saddled with massive expenses and "lenders may find themselves holding for security a property that is valueless." For landlords, this means adding more items to due diligence checklists. They need to inspect properties regularly, though Grignano recalls that one of his clients was almost scared out of his life when he uncovered incriminating evi- dence about tenants who would not take kindly to the notion that a nosy landlord could put them in jail for several years. A safer approach is to watch out for tell- tale signs, such as condensation on win- dows or an inordinate amount of traffic in and out of the building. Another good precaution, he suggests, is for owners to pay hydro bills, charging them back to the tenants, thus monitoring for the in- creased energy use that grow ops require. While no one is likely to tell you Taking the FIRST step doesn't have to be this risky they're planning to use a property for an illegal drug operation, Grignano advises landlords to do what they can to screen prospective tenants — and certainly to cast a wary eye on people with no credit rating who show up in Ferraris to pay their leases in cash, producing a roll of COMING IN JUNE As a residential real estate lawyer you probably include title insurance automatically on most transactions these days. After all, not only does it help manage risk for you and your clients, it's a simple and fast process. The same can be said for your commercial deals. Take the risk-free step and call us for coverage information or for unique ideas on how you can structure the next commercial deal that comes your way. We won't leave you hanging. FILLER 1/6 VERTICAL Canadian Lawyer's special report onpp Insurance by with the exception of commercial policies by Trademark of The First American Corporation. . Services by First Canadian Title Company Limited. This material is intended to provide general information only. For specific coverage and exclusions, refer to the policy. Copies are available upon request. Some products/services may vary by province. Prices and products offered are subject to change without notice. TM 20 M AY 2008 www. C ANADIAN mag.com FillerAd_onesixth_women.indd 1 4/16/08 10:12:10 AM