Mandatory Home Inspection?

Interesting article:

John McKenna
American Home Inspection

I read an on-line article somewhere that mentinoed that Canada was considering requiring pre-listing or pre-selling inspections on all homes. Of course I think it’s a great idea. Full Disclosure on a property is a good thing. :slight_smile:

But the NAR-ASHI survey

ASHI, which has been urging Congress to examine the risks uninformed home buying decision pose for consumers and federal housing programs, also believes such a requirement would go a long way toward preventing such fraudulent acts as property flipping in which a rundown house is purchased at a low-ball price and resold at a much higher figure after a few cosmetic repairs are made to mask major problems.

According to the NAR-ASHI study, nearly seven out of ever 10 buyers chose their home inspectors based upon the recommendations of a real estate agent.

Nice, especially for ashi.

They were considering making mandatory home inspections in Ontario, but it was shelved.

**Mandatory Home Inspections on Resale Homes in Ontario


Hi to all,

as some of you may be aware the UK passed a law 2 years ago mandating that prelisting home inspections called PCR (Property condition reports) would have to be compliled before a home could be listed.

This was part of a wider ranging act to clean up the conveyancing (selling) of property and speed up the process. However under pressure from the real estate community and others this has just been postponned indeffinately leaving thousands of partially trained or recently trained home inspectors badly out of pocket.

Personally I believe that home inspections will become mandated over here in the next 10 years, but that they will be required by the lending institutions and insurance companies rather than any goverment body.




Much like CAHPI, only they have no legislation and are self regulating and report to themselves. It won’t fly considering how things are run.


Good thought Gerry.

Do you or anyone else know many lenders or insurance companies that
require a full home inspection at this time? I am looking for a trend.

John McKenna
American Home Inspection

Hi Gerry,

I think that you are right but I don’t think it is going to be an inspection like we think of them today.

Hi John,

I only know of some smaller lending institutions and some government funding that requires inspections, I have thought for many years that our buisiness is ripe for some vertical intergration. I suspect that ulimately the roles of the appraisers and inspectors will become indivisible as that is the most logical solution (why pay 2 guys to visit one home).

Greg, yes I think that the inspection will change but I think not drastically, we will always have to look at the same things for the same reasons, what I could see comming to the business is a scoring system together with “fault codes” to enable lenders (or insurers) to quantify a buildings condition and risk.

Just my 2 pence worth.

BTW, I am very surprised that we are not yet seeing this happen, I believe that our businesses will change conciderably over the next 5-10 years, but as I have been saying that for 6 years now what do I know :mrgreen:



The act of flipping is not in itself fraudulant.

Did you notice the last line of the article? 7 out of 10 select an inspector based on realtor recommendations. See the post under general discussion about the “easy” inspectors. If mandatory inspections ever get approved, watch out. It may just put alot of us out of business, or at least make us join ashi if we want to stay in business - and then have to suck up to realtors to get referrals (yechh).

Be very careful what you wish for. :frowning: If the Govt mandates Home Inspections, then the Govt will also mandate what exactly a Home Inspection is, with this mandate will come many layers of bureaucracy and red tape, perhaps even fee schedules. :shock:
Sometimes more Govt is not the answer to every question.:wink: