Mortgage Glossary

BUILDING INSPECTIONS

A building inspection (also called a home inspection) will identify problems with a house. For example, is the roof leaking or needing replacement? Do the beams have woodrot? Is the foundation sinking? An inspection does not give any indication of property value.

The building inspector will usually give you a list of necessary repairs and sometimes an approximate cost for each.

You should make your purchase agreement subject to a satisfactory building inspection.
What if there is a problem? Your realtor with you. There are various solutions, depending on the problem.

You could decide the problem is minor and accept the property as is.
You could try to negotiate a reduction in purchase price.
The vendor could fix the problem to your satisfaction.
If any major structural faults are found, or if the combined total of minor problems is in excess of an agreed amount, you can refuse to remove the 'subject to...', walk away from the deal and have your deposit refunded.

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