What is a pre-purchase inspection?
Pre-purchase home inspection are used to inspect the home’s condition and what is visible to the building inspector. While it is not required to obtain a mortgage loan or any other financial transaction, it can save you money and help you avoid expensive headaches.
No matter what type of property, inspections are highly recommended in every province of Canada. It doesn’t matter if you are buying a house that is 5 years old or 50 years old, a home in the city or out of town, a condo or single-family home. A pre-purchase inspection is a good idea. Even if a new construction is covered by a warranty, it’s still a good idea to do a prepurchase inspection. This warranty is available in Canada in Ontario, Alberta and British Columbia.
What’s included in an inspection?
The inspector will inspect the areas that are visible from the outside and inside the property. This includes the ceilings, walls, flooring, foundation, roof, and other structures. In the case condominiums, common areas may also be examined.
The inspection report should contain the following:
- Detailed observations of the condition of this property.
- Information about any defects, work required, water infiltration possible, appearance of mold, suspicious odours etc.
- Many photos of the property.
How do you select an inspector?
A certified inspector is a member of a professional organization or association. This protects the buyer and provides liability insurance in the event of malpractice.
What is the cost of a building inspector?
Prices will vary depending on what type of building you are buying, where you live, and who the inspector is. However, you can expect to pay between $500 and $600 for a thorough pre-purchase inspection. This should be taken into account when you budget for the costs of purchasing a home. This will make it easier to determine how much you need to save to cover the costs of buying a house.
What are the advantages of a pre-purchase inspection of your home?
A good understanding of the asset that you are about to purchase
A property purchase is a significant investment. An inspection will allow you to make an informed decision. This is a significant step in your life and requires careful consideration. This is one of the most important purchases you will make in your life. Would you trust your instincts? A pre-purchase inspection can help you gain more information about the house and avoid unpleasant surprises down the road. This is a very emotional time for buyers, especially first-timers. It is important to have all the facts so you don’t get blindsided by the home’s aesthetics.
Limiting the risks associated with any potential latent defects
Although inspectors are more likely to spot potential problems, they only inspect the areas that are accessible. This means there could still be latent defects despite all their diligence and competence. A certified inspector can protect the buyer from professional wrongdoing. If the inspector doesn’t inspect the attic, even though it is accessible, and the buyer later discovers that it is contaminated, the buyer has the right to contest the inspection report. The buyer can also take legal action against the inspector for failing to see a visible or accessible defect.
Determining whether the home needs any repairs in the near, medium, or long-term, and negotiating the purchase price
For example, if the roof needs to get redone quickly and it is not mentioned in the seller’s declaration, this could impact the buyer’s willingness to move forward or help them negotiate a lower price. Either the seller can complete the work before transfer of ownership or the buyer can negotiate a lower price if the work is done themselves.
Cancellation of the transaction in the event of defects
You can also add a conditional sales clause to the pre-purchase inspection and the approval for financing. This allows you to cancel your purchase promise if the inspection results are not favorable.