When buying a new home, after you have negotiated the price and terms, it is recommended to include a period of five to ten days in the contract to allow for the Buyer to engage a qualified home inspector to inspect the property and produce a report. If the report is not satisfactory to the Buyer then the Buyer has the option of not proceeding with the purchase.

     Sometimes the inspection uncovers issues that the Seller was unaware of and perhaps would have repaired if they were aware of the issue, especially if the issue would cause further damage if left unattended. For issues such as these, it is common that the Seller would agree to repair them prior to closing date and this is then written into the agreement as a term of sale satisfying the Buyer to remove their (inspection) condition. If the issues are larger or the Buyer feels uncomfortable with the number or scope of issues uncovered then they would exercise their option to not proceed with the purchase.

     If the parties are dealing in good faith, such issue must be substantial and not frivolous or repairable to exercise the option of cancelling the contract. Once the Buyer is satisfied with the inspection or new terms emerging from the inspection, they are required to waive their condition within the prescribed due diligence period.

     Inspections should not be used as a lever to renegotiate the contract except if as noted above or if the issue is clearly an issue that could not have been discovered prior to an inspection and the issue is substantive. For example, asqueaky stair/floor in a 30 years old house is not a valid reason to use for an inspection because this issue was readily apparent on the Buyer’s original visit without a home inspector. While defects such as signs of water penetration through cracks in basement are issues that may not be readily visible on a first visit but discovered upon an inspection are valid issues to raise with the Seller. A roof that has never leaked and is discovered to be 10 years old does not provide you an argument to renegotiate the contract in order to pro-rate the remaining value.

     Around 80% of Canadian home buyers hire the Contractor to renovate/upgrade their newly purchased residential units prior to moving in. Having a home inspection report available to have the identified major/minor deficiencies fixed by a qualified professional would be beneficial to the Home Owner.