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Ontario Home Inspection Act 2017

The Ontario government has passed legislation to regulate the home inspection industry, which establishes qualifications for home inspectors. “The Home Inspection Act 2017” sets minimum standards for home inspection contracts, reports, disclosures and the performance of home inspections. With the new law, individuals performing home inspections must be licensed. Also, a written contract with the homeowner must be signed and a written report must be delivered after the inspection.

With bidding wars running full speed in the last few years, buyers have foregone home inspection clauses for fear of losing out on their desired home. Realtors have struggled with protecting their clients while getting them what they want amidst stiff competition. This legislation could help make things better, especially if pre-listing home-inspections are ordered by sellers and make available to potential buyers before presentation of offers.

To get a better understanding of this legislation, I spoke with Allen Spisak, a home inspector who I met in May, 2017 and who is well versed with the industry, its challenges and changes. Spisak explains what is happening in the home inspection industry in Ontario, Canada and with the implementation of the latest government legislation and regulation.

Listen to how he explains the timing and challenges with implementation the new legislation.

Non-Application of The Act

According to the Act it does not apply to everyone…”Subject to the regulations, this Act does not apply to a holder of a licence or certificate of practice under the Architects Act or a holder of a licence, limited licence, temporary licence, provisional licence or certificate of authorization under the Professional Engineers Act.”

Revoking of License

In reading through the legislation looking for consequences I came across:

“9 (1) The Lieutenant Governor in Council may, by regulation, revoke the designation of the administrative authority if the Lieutenant Governor in Council considers it advisable to do so in the public interest.”

I’m anxious to see how this will affect the home inspection reports.

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