In today’s market, potential buyers face considerable pressure and being responsive and flexible is key for securing a property. However, buying real estate is a major investment that should be approached with caution. While skipping certain steps might save time, it’s important to consider the potential consequences.
Although a pre-purchase inspection isn’t mandatory, it’s highly recommended to protect yourself both during and after your purchase. Therefore, waiving this inspection can be a very risky decision. Let’s see why.
The risks of waving a pre-purchase inspection
A pre-purchase inspection is designed to uncover any potential issues and hidden defects in a property. The inspector evaluates various aspects, including:
- The roof
- The structure
- The exterior of the property and the land
- The interior of the property
- The electrical system
- The plumbing
- The heating and ventilation systems
- Air conditioning and heat pump, if applicable
- Thermal and sound insulation
- Safety-related elements
If you lack the expertise to identify potential problems, skipping the inspection is not advisable. Without it, you may encounter various issues that could have been detected and addressed beforehand. Here are the potential consequences you might face:
-
Living with issues that the building inspector could have detected
While a building inspection is based on a visual examination and can't uncover every hidden defect, inspectors can often identify signs of potential problems. The inspection report helps you assess the viability of a purchase and can aid in negotiations. Waving this inspection means missing out on these valuable insights, which could turn your dream home into a costly headache.
For instance, imagine moving into your new home and discovering leaks during a heavy rainstorm. If the roof’s waterproofing fails and you didn’t have an inspection, you might be unprepared for the necessary repairs and lack the budget to address them. This oversight could leave you facing significant issues and unexpected expenses.
-
Losing your recourse against the seller in case of defects
Waiving a pre-purchase inspection not only exposes you to financial risks but also eliminates important recourse options against the seller.
While sellers are generally obligated to guarantee the quality of the property, buyers also have a responsibility to act with due diligence. Unless you’re a professional, only an inspection expert can reveal potential flaws in the property.
If issues arise after the purchase, waiving the inspection could be viewed as a lapse in prudence. In a legal dispute with the seller, a court might interpret your decision to forgo the inspection as a sign of negligence.
This is especially critical if the sale excludes the legal warranty of quality, making a pre-purchase inspection even more essential.
Prevention tools against waiving an inspection
The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) is dedicated to protecting buyers. To address the risks of waiving a pre-purchase inspection, several measures are implemented, including:
-
The real estate broker’s information obligations
The real estate brokerage code of ethics mandates that brokers have a duty of advice. This means your broker must provide objective guidance, including regarding the pre-purchase inspection. They should recommend that you have a thorough inspection conducted by an expert who:
- Holds professional liability insurance.
- Uses a recognized inspection service agreement.
- Adheres to a recognized practice standard.
- Provides a written report.
Additionally, your broker has the duty to inform you of the risks associated with waiving the pre-purchase inspection, as previously outlined.
-
New offer to purchase forms
To address the risks of waiving a pre-purchase inspection, the OACIQ has introduced new offer to purchase forms. These forms include an inspection clause that:
- Confirms the buyer has been informed by the broker about the risks of waiving the inspection.
- Provides a warning that, except in specific circumstances, buyers should not forgo the pre-purchase inspection.
Since June 2021, these new forms have been mandatory to increase buyer awareness and ensure that the issue has been thoroughly discussed with the broker.
Are there any exceptions?
As mentioned earlier, the offer to purchase forms state that buyers should generally not waive the pre-purchase inspection, except in certain cases. These exceptions primarily involve:
- Major renovations
- Complete replacement
While the likelihood of hidden defects is reduced in these situations, it is not entirely eliminated. Therefore, it is important to be aware of the potential consequences and make an informed decision.
Avoid taking unnecessary risks
It’s evident that skipping the pre-purchase inspection increases your risk. If you are still contemplating waving this precaution, ask yourself the following question: do you have the financial resources to manage unexpected repairs?
Are you looking for an expert for a pre-purchase inspection?
XpertSource.com can help you in your efforts to find a building inspector. By telling us about your project, we will refer you to top-rated experts, free of charge! Simply fill out the form (it only takes 2 minutes) and you will be put in contact with the right experts.
