By: Jayson Schwarz LLM
Today’s article concentrates on the last piece in the puzzle of preparing to firm up the offer. You have now reached the point where you have made an offer through your real estate agent after getting pre-approved through your mortgage broker; your lawyer has approved it and it is conditional on financing and something called home inspection.
There is an association for home inspectors and funnily enough it is called the Ontario Association of Home Inspectors (“OAHI”). They have a professional code of conduct, courses for their members, accreditation, conflict of interest guidelines and they keep a list of members in good standing (www.oahi.com).
What is a home inspector? He or she is the individual that during your conditional period will attend at the home you are purchasing and he/she will do a thorough inspection to determine if there is anything wrong. The OAHI says on their site “The OAHI inspector will go through the property and perform a comprehensive visual inspection to assess the condition of the house and its systems. Inspections are intended to provide the client with a better understanding of property conditions, as observed at the time of the inspection.”
Ok, so hopefully, this person will find the patent defects, so you can make an educated decision as to what you are getting. This is very important. We don’t want termites, structural defects or other scary problems. What you need to remember however is that this is not a “complete” inspection. It is only visual and does not get to those areas hidden behind or under immovable objects or walls or ceilings or floors. Although not a “complete” inspection it certainly will do, in order to give you a good idea as to the condition of the home and those items included in the written report. Make sure the inspector checks electrical, plumbing, heating and air-conditioning systems.
Here is a suggested list of questions to make sure you get the right inspector:
- What professional organization does the inspector belong to?
- Does he/she supply a written report?
- How long has he/she been in business as a home inspector?
- What is the experience in residential construction?
- Does the company do repairs or improvements? If so run, CONFLICT OF INTEREST!!
- How long will the inspection take? Less than 3 hours is insufficient to do it right.
- How much will it cost?
- Does the inspector encourage the client to come with? Important you do.
- Does the inspector participate in continuing education programs?
- Can the inspector provide you with recent references? (check them)