The Home Inspection Found a Problem. Is the Deal in Trouble?

The home inspection is finished, and the report has arrived.

There's evidence of moisture in the basement. The roof is getting older. Maybe the electrical panel needs attention.

The buyer is worried. The seller is frustrated.

And suddenly, everyone is wondering whether the deal is about to fall apart.

Not necessarily.

After nearly 30 years in real estate, I've learned that what matters isn't just what the inspector finds. It's how everyone responds.

If you're the buyer

First, don't panic.

A home inspection is intended to identify concerns, not declare whether a house is worth buying.

There is a big difference between a dripping tap, a roof approaching the end of its useful life and a serious structural concern.

Before making a decision, consider:

• How serious is the problem? Does it require routine maintenance, an expensive repair or further investigation?

• What will it cost? A qualified contractor or specialist may be able to provide a clearer assessment and estimate.

• Was the issue already reflected in the price? If the roof is visibly aging or the furnace is clearly nearing the end of its useful life, these are patent defects, meaning they are reasonably discoverable through an ordinary inspection. The asking price may already account for their condition. Finding them in an inspection report doesn't necessarily justify asking for another price reduction.

• What are your options? Depending on the terms of your agreement, you may be able to request repairs, negotiate a price adjustment or reconsider the purchase.

  
  

Remember, no resale home is perfect. The question is whether you understand what you're buying, what was reasonably apparent when you made your offer, and whether you're comfortable with the risks and costs.

If you're the seller

An inspection report identifying problems doesn't automatically mean you've lost your buyer.

But don't dismiss the findings either.

There's also something every Ontario seller needs to understand: the law requires disclosure of certain known defects, even when buyers can't see them.

The distinction is between patent and latent defects.

• Patent defects are problems a buyer or home inspector could reasonably discover. An obviously aging roof or an older furnace, for example, generally doesn't require disclosure simply because of its age.

• Latent defects are hidden problems that aren't reasonably discoverable through an ordinary inspection. When a seller knows about a serious latent defect that makes the property unsafe, dangerous or unfit for habitation, disclosure is legally required.

  
  

Here's an example: Suppose your basement floods every spring, but it's dry when buyers visit. If you know about a serious, ongoing water infiltration problem that isn't visible during an ordinary inspection, that may be a material latent defect requiring disclosure.

Covering the evidence with fresh drywall or paint doesn't make the problem disappear. It could, however, create significant legal problems later.

And remember, even a previously repaired problem deserves careful consideration. The cause, quality of the repairs and whether the issue has genuinely been resolved all matter.

If an inspection identifies a concern, get the facts, obtain professional advice where necessary and understand your obligations before responding.

My advice? It's far better to address a problem properly than to inherit a lawsuit after closing.

Here's what both sides need to understand

An inspection report doesn't automatically reopen negotiations or give either party the right to cancel a sale.

Those rights depend on the wording of the Agreement of Purchase and Sale, including any inspection condition and applicable legal obligations.

If an agreement is conditional on a satisfactory inspection, the buyer may have options that wouldn't exist in a firm agreement.

That's why careful wording, experienced representation and sound advice matter.

The bottom line

A home inspection finding isn't necessarily a deal-breaker.

It may simply be a problem that needs investigating, explaining or negotiating.

I've helped buyers and sellers work through difficult property issues, and my approach is always the same: understand the facts, assess the options and protect my client's interests.

Because a successful real estate transaction isn't just about getting an offer accepted. It's about making sure everyone understands what they're agreeing to.

Buying or selling in Etobicoke or Toronto?

Gary and I would be happy to help you make a plan that makes sense.

Sandra Rinomato & Gary MacRae contact@rinomato.com rinomato.com