M2. LESSON 2

PROPERTY INSPECTIONS & DISCLOSURES

Property Inspections

Your home will need to be inspected by a licensed Property Inspector at some point of the sale process. Commonly the buyer pays for the inspection to be done after you have agreed to their offer. However, if you present a professional Property Inspection Report before this time, it is a really good idea for the following reasons:

  • offers prospected buyers peace of mind that there are no hidden problems which helps the sale close quickly
  • clarity around possible unexpected issues ‘such as basement cracks or mold’ which could jeopardize the sale price
  • helps simplify and streamline the closing process

Make sure you choose a reputable inspector with current qualifications and credentials. Typically, an inspection takes about three hours and costs around $400 to $500. Following the inspection you will be presented with a detailed written report.

DISCLOSURES CHECKLIST

Nearly every home has some known issues or defects; a Disclosures Statement is a document that outlines these clearly.

Being upfront about any issues can work in your favour as it shows that you are honest and builds a healthy relationship of trust with a potential buyer, which can help the property sale go more smoothly. Also by being forthright helps protects you from possible legal ramifications of misrepresenting the property.

What Should Be Included in a Disclosure Statement?

Fix issues with the following, otherwise add them to the Disclosure Statement:

  • Fridge
  • Washer
  • Dryer
  • Furnace
  • Hot water heater
  • Air conditioning
  • Mold
  • Cracks in the foundations
  • Zoning
  • Water rights
  • Plumbing
  • Electrical
  • Roofing
  • Structural damage
  • Any renovations or work completed without the correct permits
  • Problems with termites or other pests
  • The existence of pets
  • Neighbourhood disputes
  • Property line disputes
  • If there are any liens on the property, or if the seller is involved in any bankruptcy proceedings
  • Asbestos
  • Lead based paint
  • Liens or outside claims from unpaid debts for past work
  • Outstanding judgments or municipal work orders
  • Necessary building permits and work orders for any work done
  • Property comply with all by-laws
  • Fence height legal
  • Is the parking area allowed by zoning
  • Easement and rights of way limit the use of the property
  • Special zoning or other rules or restrictions that apply to this property
  • Heritage district
  • Sump pump discharging according to local regulations
  • Removing any appliances, garden shed etc after closing
  • Title free and clear
  • Survey acceptable
  • Property taxes