Choosing a home inspector can be a task more difficult than it may appear. Unfortunately, the predominant method the home inspection industry relies on is close ties to real estate companies.  This has become increasingly evident with the advent of the internet.  More and more real estate companies are providing web-site links to home inspection companies that they recommend.

One might wonder if this represents an unhealthy environment for purchasers.  Given that real estate agents are remunerated on a commission basis, it is plausible that a real estate company could intentionally promote a home inspector that either overlooks or downplays problems that may affect a purchaser's decision not to purchase a property.

Similarly, it is commonplace for real estate agents to contact and book home inspections on the purchaser’s behalf.  This practice sidesteps the impartiality of the process by leaving the quality of the inspector to the discretion of the commissioned real estate agent instead of the purchaser. 

The inspection clause in the Agreement of Purchase and Sale determines both the type of inspection to be completed, and what influence the inspection will have on the transaction. 

An inspection clause that limits the scope of the inspection to major structural defects effectively restricts a purchaser's right to walk away from the transaction. In the event that extensive and/or costly repairs exist that are not major structural by definition, the buyer would be stuck with the purchase.  This is wrong.  

Another problem inspection clauses can have are how they define what a qualified or bona fide home inspector is. The Province of Ontario has no regulatory body overseeing home inspectors. Nor are there any licensing requirements. Sadly, even if you have no experience or knowledge to assist you to inspect houses, you are still technically qualified to be a home inspector in Ontario.  Any clause that states that an inspection is required to be completed by a qualified or bona fide home inspector becomes very subjective. 

Another clause to be cautious of is one that permits the homeowner to repair deficiencies.  Is goes without saying that sellers have a vested interest to repair defects as cheaply as possible.  A better solution is to get 3 or 4 quotes for the cost of the repairs, and work it out monetarily.  If work does have to be completed by the seller, always specify in writing that all work is required to be completed to the standards of the current Ontario Building Code and/or Ontario electrical Safety Code.  If any repairs fail to meet minimum standards, at least there will be some window for recourse.

One home inspection clause produced by the Toronto Real Estate Board’s closely meets the ideal criteria. Known as RES-66, it reads as follows.

One improvement that could be made to this clause would be to eliminate the specific condition date. In the event that it takes 4 days to negotiate the terms of the Agreement of Purchase and Sale, the inspection date would be required to be changed to allow more time for the inspection. By simply including a fixed number of days for the inspection, after the offer has been accepted by both parties, no date changes would be required. The condition could start something like, "This offer is conditional for X days from the acceptance date of this offer, upon the inspection of the subject property….."

Ultimately, it is of utmost importance that the inspection clause favours the buyer, not the seller.  After all, it is the buyer assuming all the risk of purchasing the property. The seller, on the other hand, is almost certainly aware of all the pitfalls and defects the buyer will be assuming.  While there is no doubt that the wording of inspection clauses can differ substantially, the onus is on the buyer to ensure that his or her needs are taken care of.

The best method of finding an inspector is the old fashioned way, word of mouth. Friends, family, and colleagues are likely the best start.  Short of these, there are yellow page directories and the internet.  Common sense suggests that every purchaser should seek and contact a minimum of three home inspectors even prior to signing any agreement of purchase and sale.  Deciding who will be doing your inspection before you sign, eliminates the pressure of taking your second choice at the last minute. 

If you have an obvious concern with a property you like, do not be afraid to call the inspector of choice, prior to commencing with the process of entering into an Agreement of Purchase and Sale. It would be foolish for the inspector to refuse to spend a few minutes on the phone explaining potential concerns or resolutions.  As well, there is an obvious advantage to negotiated the terms of an Agreement of Purchase and Sale if you already have a partial idea of at least one item that may need to be repaired.  To be fair, it is not realistic, to expect to get either a free home inspection over the phone, or any definitive advise when the inspector has not even seen the problem.  At best, you can expect to be better educated with respect to what the problem may represent long term.    

Qualifications

Formal education does not always make the best home inspector. If an inspector has never done the work himself to trade standards, how can he judge or assess the work of others. 

Since the majority of houses are not built in the quality controlled factory environment like cars and toasters, every house has its own strengths, and weaknesses.   A well seasoned home inspector with sound practical application building experience in all phases of construction is a minimum requirement for good home inspector.  Add to this a thorough knowledge of the building code, the plumbing code, and the electrical safety code, and you have likely found a good home inspector.

The ability for a home inspector to understand why problems have occurred and what repair options are available is likely the most important ability required. That said, it takes a well seasoned home inspector to understand that problems that may not be present today, may be present long term if improvements are not made today.  A simple example of this would be a missing down pipe worth $4 that can cause $4,000 worth of foundation deterioration 15 years down the road.