Real Estate Talk:
The issue with home inspectors

Certification is not a requirement in Quebec but it should be

By Joseph Marovitch

An inspection is always recommended, even with new construction. I once sold a new construction condominium. The building was just completed, and the unit included indoor parking. Upon inspection, the garage was found to have cracks in the ceiling and water infiltration. The builder had used low-grade concrete and bubbles left in the structure allowed air to infiltrate. The air expanded allowing cracks to enlarge which allowed water to enter. Fortunately, new construction condos have five to seven-year warranties and the builder repaired the problem once they were made aware of the issue.

Another client made an offer on a single home and provided their own inspector who was a relative. The relative showed up with a paper, pencil and a small camera. The relative/ home inspector found what they thought was asbestos in the attic, though it looked a lot like newspaper rolled up in tiny balls. Upon further tests, the asbestos turned out to be cat litter.

It should not be that anybody with a paper, pencil and some experience fixing drywall, should be allowed to inspect one of the most important and largest purchases in life.

The problem is certification is not a requirement in Quebec and it should be. You need a licence to marry, drive a car, be a real estate broker and practice medicine to name a few professions that affect your health and pocketbook. A home can cost thousands of dollars after the purchase if there are foundation issues, roof issues, electrical or plumbing issues. A home can also cost the health of your family if there are ventilation, asbestos, vermiculite, or mould issues.

It should not be that anybody with a paper, pencil and some experience fixing drywall, should be allowed to inspect one of the most important and largest purchases in life.

The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), the government body assigned to oversee and regulate real estate brokerage in Quebec and protect the public according to the rules of the real estate brokerage act, recommends criteria to brokers and buyers, to better help choose their inspector, which are as follows:

1. Inspectors must have liability insurance in the event they miss an issue during the inspection that causes damage later. The buyer should see written proof of liability insurance.
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2. Use recognized standards of practice with guidelines, define specific terms and provide a standardized report.
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3. Provide a clear service agreement that states the nature, scope, cost and limitations of the inspection.
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4. Provide a clear and concise written report within days of the inspection so the buyer will know and fully understand the state of the property, any risk or cost that may devalue the property.

In further attempting to assist the public in choosing an inspector, the OACIQ has an agreement with the following building inspector associations who meet the OACIQ criteria. These are the associations the OACIQ can recommend:

1. AIBQ – Association des inspecteurs en bâtiment du Québec
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2. ATIB – Association des thermographes en inspection de bâtiment
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3. AIIICQ InterNACHI-Quebec – Association internationale des inspecteurs immobiliers certifiés du Québec

Inspectors with one or all of these certifications are acceptable by the OACIQ.

‘… the Quebec government should require that building inspectors take courses, pass tests and have standardized and required certification licences to be home inspectors for the safety and well being of the public.’

One more note, most inspectors only examine what they can see with their own eyes. I recommend that your inspector be trained and have available a thermal imaging device to allow detection of loose or ungrounded wires, humidity in the walls and areas where insulation is lacking, and heat is escaping.

It is very good that the OACIQ provides criteria and can endorse certain certifications, however, the Quebec government should require that building inspectors take courses, pass tests and have standardized and required certification licences to be home inspectors for the safety and well being of the public.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, go to the search link and type in Joseph Marovitch.

Have a great week!

Next article: Retail in Westmount and where it is going

State of the market

Once again, the top headline in the news is Montreal real estate prices are on the rise. What was within range on Centris a year ago is no longer. There are fewer homes for sale and what is left is now higher-priced and rising.

There are a few opportunities to purchase property that requires renovation. Purchasing a property that requires upgrading is time and energy consuming but far less expensive than buying the finished product. When an owner renovates an out-of-date property, they will take the cost to renovate and multiply it by three to compensate for the effort, time and material. Investors do not spend a dollar to get back a dollar. They spend a dollar to get back three dollars or more.

‘Purchasing a property that requires upgrading is time and energy consuming but far less expensive than buying the finished product.’

If the seller can do it, so can the buyer. The buyer just has to purchase the pre-renovated property at a fair and good price to make the investment of time, energy and money worthwhile.

The math is simple. Determine what a properties value is specific to its location (eg: Westmount or LaSalle) if it were already renovated, determine what it will cost to renovate, subtract the cost of material, labour and a percentage for your time and energy (20% to 50%) and make an offer.

The seller will determine if it is worthwhile to do the renovation themselves or sell at the pre-renovation value and walk away. These opportunities are few and far between these days but if one can be found and the buyer has the inclination to do the work, go for it!

Image: Burst

Read also: Other articles by Joseph Marovitch