For example, the standard purchase agreement might state that “the buyer has 7 days (or _____ to request a home inspection.” In this case, the standard number of days for home inspection is seven. However, it may be fixed for a longer or shorter period as long as the buyer and seller agree on this point. “This agreement is subject to the condition that a home inspector, at the option and expense of the buyer, visit the property and receive, at his discretion, a report satisfactory to him.” Real estate transactions in Ontario generally depend on one or more conditions, one of which is usually a home inspection condition. This means that if the buyer encounters serious problems with the seller`s property, he may be allowed to withdraw from the purchase. Surprisingly, while this condition is found in the majority of residential real estate transactions, buyers and sellers often don`t fully understand what it means and what their rights are. Right to inspection lawyers write in the sales contract a domestic inspection clause. This clause gives the buyer the right to go to the land and enter the house with an inspector of the buyer`s choice to carefully evaluate and inspect the house for sale. This is a right granted by the owner of the property. This is what happened: the buyer received the report and was not satisfied. After saying that he was not satisfied, he asked the seller for the deposit. The seller felt that the buyer`s decision was inappropriate, given that an objective examination of the report showed that there were only very minor problems with the house and therefore did not want to return the bond.

The court accepted the buyer and stated that the terms “exclusive and absolute discretion” meant that the buyer could take a subjective view as opposed to an objective home inspection report. In general, buyers are expected to act honestly, reasonably and in good faith when attempting to fulfill a condition, including a home inspection condition. The Ontario Court of Appeal has repeated this point and Marshall v. Bernard Place Corp, 2002 offers some insights into this topic. Use this form to find out how you can sell your home sooner and for more money. This is the reason why every condition of home inspection must be carefully designed and conducted in good faith. If you are a buyer and changes are made to the home inspection clause, you should carefully check the changes with your real estate seller or lawyer, as your rights may be affected. . . .