Sandeep Pawar
Broker
Home / Buy / Inspections and due diligence
Home inspections and due diligence before you firm up
What to check on the house, the paperwork and, for a condo, the building’s finances, before your offer becomes a contract you cannot leave.
The short answer: before your offer becomes firm, check three things. The house: a professional home inspection. The paperwork: title, permits, survey and any rental equipment. For a condo, the money: the status certificate. The corporation must provide it within 10 days, for no more than $100 including taxes. Your lawyer should review it. If something serious turns up, renegotiate or walk away before the condition deadline.
The due diligence map
| Check | Who does it | When | Why it matters |
|---|---|---|---|
| Home inspection | A professional home inspector, with you present | Before the offer, or during the inspection condition | Finds defects in structure, roof, water, electrical, plumbing and heating. |
| Specialist checks | Sewer camera, roofer, electrician, WETT inspector for wood stoves | When the general inspector recommends it | Some defects need a specialist to price. |
| Renovation permits | You and your lawyer, with the city | Before firm | Unpermitted work can affect insurance, safety and resale. |
| Second unit status | You and your lawyer, with the city | Before firm | A basement apartment that is not legal can change your numbers. See legal basements. |
| Survey and lot | Your lawyer | Title search period | Fences, easements and additions over the lot line. |
| Rental equipment | You and your lawyer | In the offer | Water heaters, furnaces and air conditioners are often rented, with contracts you take over. |
| Title search | Your lawyer | Before closing | Liens, work orders and claims against the property. |
| Status certificate | Your lawyer | Condition period | The condo corporation’s finances, rules and lawsuits. |
| Insurance quote | Your insurance broker | Before firm | Some homes are hard or costly to insure. |
Before the offer
Due diligence starts on the first showing. What you notice then decides what you inspect later.
What happens
You tour with a checklist and ask the seller’s side for disclosure documents and any pre-listing inspection.
What you do
Ask about the age of the roof, furnace, air conditioner and windows, any basement water, and permits for renovations.
Documents and people
Listing, seller disclosure (if any), pre-listing inspection, utility history, for condos the status certificate if available.
Watch for
Fresh paint on one patch of a basement wall. New flooring in only one room. Ask why.
How I help
I point out what I see on every showing, from water stains to unpermitted work, before you get attached.
Book a qualified inspector
The inspection is only as good as the inspector. Book one before you need one.
What happens
You hire an inspector, either for a pre-offer inspection or within the condition period.
What you do
Ask about experience with this type of home, what the report covers, and how long it takes to deliver.
Documents and people
Inspector’s sample report and agreement, access arranged through the listing agent.
Watch for
Choosing purely on price or availability. A rushed inspection on a complex house is a false saving.
How I help
I can introduce you to an inspector I trust, and I arrange access with the listing agent. You are always free to use your own.
Attend the inspection
Go. You learn more in two hours with the inspector than from a forty-page report.
What happens
The inspector walks the exterior, roof (where safe), attic, structure, basement, systems and every room.
What you do
Ask what is urgent, what is maintenance and what is cosmetic. Ask what each issue might cost to fix.
Documents and people
Notes and photos. For a condo, CMHC suggests looking at both the unit and the building as a whole.
Watch for
Moisture readings in the basement, signs of past water, aluminum or knob-and-tube wiring, and grading that slopes toward the house.
How I help
I go through the findings with you, so we can talk about what each one means for the price before the deadline.
Read the whole report
Sort every finding into three groups: safety, money, and maintenance.
What happens
The inspector sends a written report, usually with photos and recommendations.
What you do
Get quotes for anything significant before the condition deadline. A guess is not a number.
Documents and people
Inspection report, contractor quotes, specialist reports.
Watch for
Recommendations for further evaluation by a specialist. They often point to the expensive items.
How I help
I help you separate the issues worth negotiating from the ones every house has.
Inspection found something and the deadline is close?
Book a 30-minute callRenegotiate, or walk away
If a real issue turns up, you have three choices, all before the condition deadline.
What happens
You ask the seller for a price reduction, a credit on closing, or a repair, through a written amendment.
What you do
Decide which option suits you. A credit or reduction is usually cleaner than a repair you cannot supervise.
Documents and people
Amendment to the agreement, quotes supporting the request.
Watch for
Asking for every small item. It can sour the deal over issues that every home has.
How I help
I make the case with quotes and photos, and keep the request proportionate to what was found. How I negotiate.
Firm up, or let the condition end
When you are satisfied, you sign a waiver or notice of fulfilment. If not, the condition can be left to fail and the deal ends.
What happens
The deal becomes firm, or it ends and the deposit is released by mutual signed release.
What you do
Confirm with your lawyer and lender before signing the waiver.
Documents and people
Waiver or notice of fulfilment, or a mutual release.
Watch for
Signing a waiver before every check is complete. Once it is firm, it is your house and your problem.
How I help
I confirm every check is done before you sign. How conditions and deposits work.
Condos: the status certificate
A condo is two purchases: your unit and a share of a building you do not control. The status certificate is how you see inside the corporation. It is set by section 76 of Ontario’s Condominium Act, 1998.
| Rule | What it means for you |
|---|---|
| Fee capped at $100, including taxes | The corporation cannot charge more for the standard certificate. |
| Delivered within 10 days | Request it and pay the fee the day your offer is accepted. Build those 10 days into your condition period. |
| Anyone can request one | You do not need the seller’s permission. The listing agent may already have a recent copy. |
| It binds the corporation | Information included or left out of the certificate binds the corporation, which can protect you later. |
What your lawyer and I look for in it:
- The reserve fund balance against the latest reserve fund study
- Any special assessment already charged, and why
- Planned increases in common expenses
- Arrears owing on the unit you are buying
- Lawsuits or judgments against the corporation
- Rules on rentals, pets, renovations and short-term stays
- Insurance certificates and the deductible owners may face
- What your monthly fee includes, such as utilities or parking
CMHC also suggests asking whether any special assessments are expected, for example for a parking garage repair. Check the building’s reserve fund study or technical audit too.
Red flags I look for on GTA homes
- Basement apartments with no record of registration or permits.
- Signs of past water: efflorescence, stained drywall, new paint low on walls.
- Older electrical systems that insurers may question.
- Additions, decks or garages converted without permits.
- Grading and downspouts that send water toward the foundation.
- For condos, a thin reserve fund with big repairs coming.
Due diligence checklist
- Inspector booked before you offer
- Condition deadline long enough for inspection and quotes
- You attend the inspection
- Specialist follow-ups booked where the report recommends them
- Permit history and second-unit status checked
- Rental equipment contracts identified
- Status certificate requested and sent to your lawyer (condos)
- Insurance quote obtained
- Lender has approved the property, not just you
Questions buyers ask
How long is a home inspection condition in Ontario?
There is no set length. It is whatever you write into the offer, often a few business days after acceptance. Book the inspector before you offer so the deadline is realistic.
Can I inspect a home before I make an offer?
Often, yes, if the seller allows access. A pre-offer inspection lets you make a firm offer with your eyes open, which matters in multiple offers. You pay for it even if you do not win the home.
What does a condo status certificate include?
It can include the declaration, by-laws, rules, budget, last audited financial statements and latest reserve fund study. It also shows the unit’s common expenses and arrears, special assessments, insurance certificates, and any judgments or lawsuits.
How much does a status certificate cost, and how long does it take?
Under Ontario’s Condominium Act, the corporation can charge no more than $100, including taxes. It must provide the certificate within 10 days. Anyone can request one, so ask for it the day your offer is accepted.
What if the inspection finds a problem?
Before the condition deadline you can ask for a lower price, a credit on closing, or a repair, all in writing through an amendment. If the problem is serious and the seller will not move, you can let the condition fail and walk away.
Will a home inspector tell me if a basement apartment is legal?
No. An inspector looks at condition, not legal status. Whether a second unit is legally registered or permitted is a question for the city and your lawyer. It affects rental income, insurance and value.
Do I need an inspection on a brand-new home?
It is still worth it. New homes come with a Tarion-backed builder warranty, but you have to find and report defects within set time limits. An inspector helps you find them before the warranty windows close.
Who pays for the home inspection?
The buyer, in almost every case. It is one of the closing-related costs to budget for, along with legal fees, title insurance and adjustments.
Sources
- Condominium Authority of Ontario: status certificates
- Ontario: Condominium Act, 1998, section 76
- CMHC: tips for buying a resale condominium
- CMHC: making an offer to purchase a home
- RECO: buyer’s checklist
- RECO: competing offers (risk of dropping the inspection condition)
- Tarion: your new home comes with a builder’s warranty
- Financial Consumer Agency of Canada: buying a home
Find the problems before they are yours
Send me a home you are considering. I will tell you what I would check, who I would bring in, and what it could mean for the price.