Just in case you feel that the title of this post is one only a real estate professional could love, think about the following: A professional home inspection is the best protection home buyers have that they are not investing in a money pit of repairs and renovations when they buy a new home. It’s interesting that when you buy some small thing for just a few dollars from most stores, you can get your money back if there’s anything wrong with it – even if it’s simply the wrong size. But when you invest $1,000,000 in a home, you have very little protection if anything, even something very costly, is wrong with it. Home inspections give you some protection against problems with your new home.
The Shocking Truth About the Home Inspection Industry
Despite their importance for protecting both sides in a real estate transaction, until the new regulations were passed in May 2017, anyone could open a home inspection business.
What do we mean ‘anyone’? Before the new legislation was accepted, there were no government-mandated requirements; not any special training, not any prerequisite experience, not any qualifications at all; to be a home inspector. Someone with zero experience in home construction, electrical, roofing, etc., could do business as a home inspector and make judgements on the condition of all those things.
A Quick Background on the New Regulations
Called the Home Inspection Act of 2017, the new legislation has been in the making for over three years since the government decided to do something about the lack of regulations for home inspections in December 2013. The Act sets standards for home inspection contracts, reports, disclosures and home inspectors themselves.
While the legislation has been passed by the provincial government, and has received Royal Assent, it will not be in force until the government sets up the infrastructure needed to support its provisions. We’ve included some of those provisions below:
- Home inspectors must be licensed by a regulating authority, which is still to be established, that oversees the industry
- Home inspectors must carry errors & omissions insurance, which will offer some form of protection for home sellers and buyers against any mistakes an inspector might make in assessing the condition of a home
- A code of conduct for inspectors will be enacted and enforced by a discipline and appeals committee
Even though there may still be some time until all the provisions of the Act are in place and enforced, it’s very welcome news for the entire real estate industry and should have an immediate effect of the level of professionalism, trust and reliability we can all expect from home inspections.
If you have any questions or would like to get a home inspection from a qualified home inspector, please give The Stephen Tar Team a call.