HOME INSPECTORS-LIMITED BUYER PROTECTION

The buyers entered into an agreement of purchase and sale conditional on a satisfactory report from a home inspector. The inspector gave the buyers a card that said, "Written reports performed to ASHI standards." He also presented the buyers with an authorization form, which they signed, stating that the report would be based on a visual inspection of the accessible features of the building. The inspector's report identified several problems, including electrical system problems, but noted that the concealed electrical components were not inspected.
The buyers bought the house, but major electrical problems were later found by a contractor they hired to do renovations. The buyers attempted to sue the inspector, alleging that he breached the standards required for a home inspection because he didn't complete the inspection in a competent manner and in accordance with standards set by the American Society of Home Inspectors (ASHI). The buyers incorrectly believed the inspector was a member of ASHI.The court does not stipulate whether ths inspector did perform to the ASHI standards as his card stated.(The court decision seems to indicate that he did.)

The buyers lost because the court decided that the usual home inspection was general in nature and done by visual inspection. The home inspector did report problems that he could identify visually and could not be held responsible for a problem that was not noticeable by visual inspection. Furthermore, the court found that the inspector did not misrepresent himself to the buyers because his card did not state he was an ASHI member.

If your buyer clients submit an offer conditional on a home inspection, you should advise them to:

1) Carefully read the home inspection contract
2) Ask questions about what the final report will and will not include ie.what are the limitations in terms of what an inspector will look at.(the furnace heat exchanger,pools and septic systems are other areas that may not covered by a general inspection.)
3) Find out what the inspector's qualifications are
4) Find out what standards will be followed. 5)Ask what recourse is provided if there is an error in the inspection.(Sometimes the contract states the inspector will refund up to the amount paid for the inspection.)
Home inspectors in Ontario are not licensed or controlled by a specific statutory law relating to home inspection.
The 1995 Ontario Home Inspectors Act allows home inspectors to be self-regulated and to set ethics and education standards.
Two organizations in Ontario: Ontario Association of Home Inspectors (OAHI) and Provincial Association of Certified Home Inspectors (PACHI) offer membership subject to professional and educational requirements. Members of OAHI may use the Registered Home Inspector, or "RHI", designation; members of PACHI may use the Certified Home Inspector or "CHI" designation.
Both OAHI and PACHI offer information to assist REALTORS® when buyers request a home inspection as a condition of sale.
The following websites offer more information on the standards set for home inspectors:

http://www.oahi.com/
http://www.ashi.com/
www.cahi.ca/
http://www.pachi.ca/

BOTTOM LINE -DO NOT CONSIDER A HOME INSPECTION TO BE A WARRANTY ON THE CURRENT AND/OR FUTURE CONDITION OF THE PROPERTY.

"CAVEAT EMPTOR" (LET THE BUYER BEWARE)IS STILL PART OF ANY REAL ESTATE TRANSACTION.