WHY DO REAL ESTATE BROKERS RECOMMEND PRE-PURCHASE INSPECTION?
Are you thinking of buying a property? Having it inspected means protecting yourself. Your broker is also required to recommend a complete inspection by a professional or a recognized building inspector. It must also provide you with several names, which should allow you to direct your choice against several possible candidates. The inspector you choose will evaluate everything that is visible: structure, roof, plumbing, electricity, heating, air conditioning, insulation, and ventilation. He must also respect certain conditions:
- hold professional liability insurance against mistakes, errors, or omissions.
- carry out the inspection in accordance with recognized standards of practice.
- use a recognized service agreement that specifies the nature, scope and limits of the services offered.
- provide you with a report electronically, which is essential to obtain an assessment of the condition of the desired building, and thus help you make an informed decision.
Your broker should attend the inspection to become aware of the anomalies and the advantages highlighted and, therefore, to be able to advise you well on the future. It is also important that you are also present. In fact, a competent building inspector will take the opportunity to show you certain elements that deserve your attention and tell you what fixes will need to be made. Once the inspection is completed, they will send you an inspection report. It is then up to you to evaluate whether its content calls into question the purchase of the property, its price, or the conditions of the sale. If further explanations are necessary regarding certain aspects of this report, do not hesitate to ask the inspector your questions.
After reading the report, if you notice minor imperfections that have no real impact on the value of the property, these should not be used to renegotiate the conditions of the promise to purchase. If, on the other hand, you have identified significant problems, then you might want to:
- reduce the price.
- carry out a more in-depth inspection of a specific component of the building with a specialist.
- grant the seller time to carry out certain repairs.
In the context of a renegotiation, you have no obligation to give the inspection report to the seller, or even part of it. If you wish to do so to justify your request for a price reduction, your broker will send the seller a complete copy or an extract of the inspection report to inform them of the problems identified, clearly indicating the reasons why the report is sent.
In conclusion, without an inspection report, you are relying solely on the seller's good faith, which represents a significant risk. Remember that purchasing a property is a big investment: request the services of a certified inspector and you will be protected.
Documentary source: Self-regulatory organization of real estate brokerage of Quebec, April 7, 2020, having an inspection means protecting yourself, article 202655, Canada.