June 2005 Update

In real estate transactions, some things never change. Sellers usually feel they’ve given their house away, buyers believe they’ve paid too much and Realtors fear neither side will ever get to the closing table. There is however, one thing that has been inconsistent in real estate transactions: the quality of the home inspection.

That’s been changing somewhat with the inception of professional home inspection associations. To gain membership, home inspectors typically prove their competency by passing exams, meeting education and experience requirements - and by maintaining a professional service to the public.

Home inspection is however not a licensed profession, and membership in one organization or another is not always the best way to measure competence.

Home inspections have been around for quite a while, and for good reasons. For a very modest fee, home buyers can gain a wealth of information about the condition of a property before they buy it. 

Recent surges in the popularity of home inspections have created an over-populated inspection industry where not all inspectors have the training or experience to do a good job. Cost-conscious consumers find out too late that trying to save $50 to $100 on an inspection can result in an inadequate report. Unfortunately, this can translate into thousands of dollars in unexpected repairs being discovered after the sale.  And well-intentioned, however over-zealous home inspectors can frighten prospective purchasers...  often needlessly.

While complaints against home inspectors have never topped the lists of consumer protection agencies, there is a growing sentiment among inspectors, mortgage lenders, government and consumers that more protection is needed.

Meanwhile Realtors, faced with more and more liability in the ever increasing complexity of real estate transactions, surmise that better home inspections will reduce their own exposure. And consumer stories of disastrous home inspections, magnified by the media, create a ground swell of support for licensing as the cure for bad home inspections.

Moreover, a clear national trend toward the idea of licensing is evolving. A strategy to provide coordination of the Canadian home inspection profession is in place. An Advisory Steering Committee, representing associations such as CAHPI¹ and CMHC² has a goal to set national standards for certification, education and training of home inspectors across the country.

Eventually, provincial or regional accrediting agencies will likely administer, certify and provide disciplinary control of all private-sector home inspectors.

Until such time as licensing is a reality, a solid background, a good reputation - and perhaps membership in a professional association - will remain as the home inspector’s primary credentials.

Before referring your clients to a home inspector or inspection company, you should first verify the training and experience of the individual inspector. Ask how many pre-purchase home inspections he or she has performed in the past year or two. Ask for references, preferably from past clients, or from other Realtors with whom you are familiar.

Be wary of low-priced home inspectors and inspectors whose only credential is a certificate acquired online, or by correspondence, or from an unidentified school or association.
 

1. Canadian Association of Home and Property Inspectors
2. Canada Mortgage and Housing Corporation

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