Legal Brief for June, 2012

Home Inspections

The spring and summer are popular times for people to be looking at purchasing a home, be it a house or a condo.  Most purchases are of existing homes rather than newly built units, many of which may be 30-40 or more years old.  Since the standard real estate purchase contract makes a purchase of an existing home an "as is" transaction (in other words, there is no warranty as to the condition of the home), it is important that a buyer know what they are getting into with their purchase.  Building codes change over the years, and the home you are looking at may not have been constructed to the same standards as a current home.  How can you protect yourself?

One of the best things you can do to safeguard your interests is to make it a condition of your offer to purchase that you will have a professional home inspection done before making your offer final (this is known as a "subject to conditon").  There is no shortage of professional inspection businesses in Edmonton - in fact the current Yellow Pages directory lists 31 different inspection companies.  And, without intending any slight to that well meaning friend or brother-in-law who works "in the trade", be sure to hire a professional inspector rather than relying on a look see by a family member.

The inspector will personally walk through the house or condo with you and will check for issues related to structure, wiring, plumbing, applicances, heating and many other items.  The inspector will then provide you with a written report which details specific items of concern, as well as providing general information on home maintenance matters.  If the report indicates serious issues, you may decide to cancel your offer to purchase, or alternatively to negotiate a reduction in the purchase price.  If the concerns are more minor in nature, it provides the purchaser with an opportunity to require the seller to fix those items (at the seller's cost) prior to closing of the purchase.

Given the investment you are making in your home purchase, the cost of a professional inspection is well worth it.  Keep in mind however that the inspectors do not have x-ray vision and cannot see behind walls or underneath floor surfaces.  There may still be defects in the home you are purchasing.  However, the risks of you encountering such problems after you have completed your purchase are certainly minimized if you have had an inspection done.

The old saying "an ounce of prevention is worth a pound of cure" certainly applies when considering buying a previously owned home.