The term "home inspection" commonly refers to a method of assessing the current condition of a property during a real estate transaction. It is usually a visual inspection, meaning that the inspector visually observes and performs general operations on accessible and functional components of the home, with the aid of certain tools. The goal is to evaluate the condition of the home's main systems and components, identify significant deficiencies, point out components or equipment that are near the end of their service lives, and provide suggestions for repairs or improvements—sometimes including cost estimates, if appropriate or requested. This definition is based on my experience and reference materials.

A typical home inspection takes 2-3 hours, depending on the size and type of the house. The inspector follows industry standards to examine the home from top to bottom and inside out. This includes inspecting the exterior and site, garage, roof, chimney, basement, each floor, attic, the structural integrity, insulation and ventilation, plumbing and electrical systems, and testing the furnace, air conditioner, fireplace, and other mechanical systems. A written report is then provided to the client. I always encourage clients and their agents to attend the inspection, discuss findings in real time, and learn about home maintenance and how to operate household systems.

The primary purpose of a home inspection is to assess the current condition of the home—like a physical exam—so the client can gain a comprehensive, objective, fair, and accurate understanding of the property. This helps them make an informed decision when buying or selling.

Except for new home inspections, a standard home inspection does not evaluate whether the home complies with current building codes or local bylaws. That's because codes evolve, but older homes are not expected to update continuously. While inspectors may suggest that certain components be brought up to current standards, such suggestions are not the focus of the inspection and are not mandatory.

Building codes and regulations are important references for inspectors, but sometimes we rely on commonly accepted industry standards or association guidelines, especially for issues related to safety and health. In cases where codes don't clearly state what is acceptable, inspectors may still identify poor construction practices.

A home inspection is not an official approval or certification of the home. There is no concept of “pass” or “fail”. The inspection report reflects the current condition and the inspector's professional opinions, but does not serve as a directive for any party to perform specific actions, since inspectors do not have legal authority.

The purpose of a home inspection is also not to assess market value. Although the condition of the home—including wear and tear on components—can affect its value, key factors like location, size, and neighborhood play a much larger role. Since inspectors are not real estate experts and do not know the client's personal situation, we typically do not advise whether to proceed with a purchase. Buyers should consider all relevant factors within the Agreement of Purchase and Sale when making their decision.

A home inspector is hired by the client to provide information and professional opinions, and is only responsible to the client. Most clients are buyers, but sometimes they may be sellers. The relationship is governed by an inspection agreement outlining each party's rights and responsibilities. Inspectors who are members of the Ontario Association of Home Inspectors (OAHI) must follow the association's Standards of Practice, Code of Conduct, and other rules, and are subject to its oversight. Non-members are not bound by these regulations. Qualified home inspectors are generally expected to hold professional certifications to ensure credibility and trustworthiness.

Home inspections fall into several categories, including: Pre-purchase Inspections—Pre-offer Inspections—Pre-listing Inspections—Pre-delivery Inspections (for New Homes), ONHW Program inspections (under the Ontario New Home Warranty Program), and Pre-renovation Inspections/Single Item Inspections.

The most common type is the pre-purchase inspection, which is a measure to protect buyers during the real estate transaction. It is typically based on a Home Inspection Condition included in the Agreement of Purchase and Sale. Though requirements vary widely, the condition usually states that if major deficiencies are discovered and the buyer and seller cannot reach agreement on how to resolve them, the buyer may terminate the agreement and receive a full refund of the deposit. While home inspection and financing conditions are the most common, they must both be waived in writing within a set timeframe for the agreement to become binding.

Although home inspections are well-established and widely used in the real estate industry, there is no legal requirement in Ontario that a home inspection must be part of a property transaction. It is purely a matter of mutual agreement between the buyer and the seller. The buyer may choose to have or waive the inspection, and the seller may choose to accept or reject the condition or any related repair requests.

This article was originally published in “Real Estate Weekly”, Issue #29, July 29, 2005.