Buying a home requires a keen eye for not just the size and style of the building, but also its condition. When you attend walkthroughs, you should always be looking for problems.
If you find yourself being swept away by sprawling ocean views or the magnificence of a chef’s kitchen, you could miss issues that may emerge as expensive problems.
Of course, not everything is obvious to the untrained eye.
That’s why commissioning a home inspection is a critical stage of any purchase. Most of us have no choice as they’re a pre-condition for getting a loan on the property.
Hidden or latent defects are an issue you may have to contend with in extreme cases.
When buying a home, it sometimes takes a few months to understand all the quirks of a property. And I’m not referring only to older properties. Even new buildings can have problems.
The seller and their agent should disclose any major defect.
Failure to do so can result in legal action. That’s not an outcome anyone wants, of course. The smart play for any seller is to fix the problem or disclose the issue at the time of sale.
A hidden defect is not a matter of aesthetics. It’s a serious problem that existed at the time of purchase but was not apparent to a normal home inspection.
Here are explanations for how to protect yourself and what constitutes a serious defect:
Home inspection – Ensure your inspector is licensed and has liability insurance. If they make a mistake, their insurance will cover the cost of their negligence.
How to respond – If a hidden defect emerges, you should document it and send a defect notice to the seller. You’ll also have to determine whether you wish to take the legal route. Always give the seller the opportunity to fix the issue.
It must be serious – It must be sufficiently significant that you would not have made the purchase, or caused you to seek a discount. It should render the home unfit for use or significantly reduce its usefulness.
Invisible to an inspector – A home inspection is thorough but it can’t be guaranteed to pick up everything. That said, these inspections will identify any major structural issues, from foundation slippage to plaster cracks in the walls.
Timing of the problem – Problems can occur after purchase. Proving the timing is critical to any argument for compensation or demanding remediation costs are met by the previous owner.
Seller’s obligation – The seller has an obligation to declare any issue they are aware of. If a problem is stated in the contract of sale, the buyer cannot claim it was hidden.
Common issues –
- Water: The entry of water into the home is often caused by poor surface water flow, or non-compliant landscaping. If these issues are not fixed quickly, they can result in considerable property damage.
- Mould: High moisture levels particularly in basements, walls and ceilings, may be due to faulty or aging insulation or poor attic ventilation.
- Electrical panel: An outdated electrical panel, improper wiring or faulty sockets can compromise safety and not be up to code.