CBC News Series: An Inside Look at Home Inspections

CBC Toronto produced the following three part news feature on the challenges in the Home Inspection industry.  Part 1 reiterates a familiar saga about the industry. Parts 2 and 3 highlight the real controversy behind the story that no one really wants to talk about.  Part 3 is so controversial that it was not published on the current CBC YouTube channel, but is included below.

 

Part 1 - An Inside Look At Home Inspections

An excellent interview, but missing two major points!

Point 1. Although it's a typical example of a problem home inspection, the simple answer: "The inspector missed it".  What we really need to ask is, "Why"? 

  • Was the inspector really that incompetent? or
  • Was the inspector's primary objective to help the realtor close the deal in trade for future inspection business.

Unfortunately, the unwritten standard of practice for Home Inspectors is, "Keep the realtor happy if you want to stay in business". This referral system has become so blatant that a number of the home inspectors insurance policies now include coverage for the referring Realtor.

Point 2. Why has the government not stepped in regarding the issues presented in this three part news special?  Because the housing industry is such a vital part of today’s economy the big picture is actually much bigger….  Many speculate that neither governments, home owners or the real estate community want the buying public to know just how many houses are in this condition; either grossly overpriced or in need of demolition, as they are no longer suitable for occupancy based on current requirements. 

 

PART 2 - Finding the Right Home Inspector

When electricians, plumbers and gas fitters require formal education along with thousands of apprenticeship hours why is it that over 35 US states and three Canadian province feel home inspectors do not require formal education.  In fact, the Ontario government's 2013 report, Qualifying Ontario’s Home Inspectors, states: “There should be no mandatory education requirement to become a home inspector”.

 

PART 2 - Home Inspector And Real Estate Agent Relationships

It’s interesting here that the President of the Toronto Real Estate Board doesn’t deny that the realtors control the home inspection industry and simply brushes it away by saying they recommend three inspectors.  This is a very safe statement for him or any realtor to make as they know full well they could even recommend 10 inspectors since the unwritten standard of practice for home inspectors remains is,  “Keep the realtor happy if you want to stay in business”.  Further, it’s obvious that in Ontario the realtors can remain confident when the Ontario government's 2013 report, Qualifying Ontario’s Home Inspectors, states, “Consumers often rely on and trust their real estate agents and should have the right to allow their agents to recommend and even to arrange home inspections”. 

 

People were asking us why CBC posted the videos of Parts 1 and 2 of this series, but did not publish the final Part 3 video on-line?  Could it be that the Realtors control more than just the home inspection industry?