What does a home inspection condition do in an Ontario offer?
A home inspection condition gives you a set period after offer acceptance to have a licensed home inspector examine the property and report on its condition. If the inspection reveals problems that are unacceptable to you, you can notify the seller that the condition was not satisfied and walk away with your deposit returned.
The condition does not automatically require the seller to fix anything — it simply gives you the right to exit. In practice, buyers sometimes use inspection findings to renegotiate price or request repairs before waiving the condition, but the seller is not obligated to agree. If you cannot reach a satisfactory agreement, your option is to either waive the condition and accept the property as is, or not waive it and end the deal.
In a competitive market, buyers sometimes waive the home inspection condition to make their offer more attractive. This is a significant risk, particularly for older homes. If you do waive it, consider hiring an inspector for a "pre-offer" inspection before submitting your bid — though note that access is up to the seller.
Key takeaways
- A home inspection condition lets you exit the deal if inspection results are unacceptable.
- The seller is not automatically required to make repairs.
- Waiving the condition to compete is risky, especially for older or complex properties.
- Consider a pre-offer inspection if you expect to waive the condition in a competitive market.