Why Independent Tarion Warranty Inspections are forgone by buyers

1. Buyers are led to believe that the house has undergone rigorous inspections by the city or local jurisdiction building department. This is partly true. The city inspectors, especially in big cities, typically do representative inspections. If they are dealing with a builder who is constructing 500 houses in one subdivision, it is impossible to go through every single house at all stages of the construction process.
2. The builder tells buyers that the Pre-Delivery Inspection (PDI) is sufficient. This is simply not true. Most PDIs do not include the functional components of the house such as the electrical, plumbing, structure, HVAC etc. PDIs concentrate on cosmetic issues and contract disagreements.
3. The builder does not educate the buyer about their rights as per the Tarion Warranty that the buyer pays for. Every buyer has the right to bring their representative, such as a professional inspector, at any process of the Tarion Warranty. I have heard so many times from homeowners the sentence “I didn’t know that I could bring my own inspector”.
4. Homeowners believe that if a house is built as per the Ontario Building Code (OBS), then it is going to be good. This is a myth in the construction industry that is perpetuated by builders and construction companies. The OBC like any other building code sets the MINIMUM standards in construction. Minimum Standards are not always good practice and I see this in every single new construction inspection I do.
5. The builder hires licensed trades to do the job. Even though this is true, modern contracting practices include subcontracting most of the work of a project. A large builder does not have thousands of different trades on the payroll. They hire other companies that specialize in a specific sector and have them do the work at a lower cost. Like any other structure, a house is built by different teams of trades whether these are plumbers, electricians, framers etc. I see the lack of communication between all these trades, in the deficiencies I see in new homes.
6. Homebuyers think that their house comes with a 7-year Warranty. That is the biggest myth of all. There are different stages in the Tarion Warranty and each one covers specific things.

What are the stages of your Tarion Warranty!

1. The Pre-Delivery Inspection (PDI). The PDI is done before the house keys are delivered to the buyer.  The PDI has the purpose of the buyer inspecting the property and submitting a list of deficiencies that are supposed to be corrected by the builder. This does not stop the delivery of the house though. In my opinion, the PDI should be done by the buyer just to make sure that the builder has delivered the property as per contract requirements; paint colours, cabinets, counters, floors etc. Cosmetic damages or deficiencies should also be reported during the PDI, as the builder may not agree with them after closing.
2. The 30-Day Warranty Stage. This stage is for the buyer to have the opportunity to report any issues after living in and interacting with the property. For example, plumbing, electrical and other evident issues can be reported during this period.
3. The 1-Year Warranty Inspection. This stage is for the buyer to report any issues that have come up within the first year of living in the home. This may include cosmetic issues that have occurred like nail pops, separating floors, drywall cracks etc. The Tarion Construction Performance Guidelines have a lot of exceptions for cosmetic issues though.
4. The 2-Year Tarion Warranty Stage. The two-year stage covers many functional issues such as plumbing, electrical, structural and water penetration inside the home. The coverage is much less than the one-year stage and will not cover workmanship issues or things that the builder may have forgotten to complete, regardless of whether they are OBC requirements or not.
5. The 7-Year Tarion Warranty Stage. The seven-stage only covers major structural issues. These include failure of foundation, frame etc. These issues typically will require engineering inspections.

Why should a new home buyer hire an independent inspection company?

In the last 5 years, I have seen houses being delivered to buyers without being finished both inside and outside. This is because builders have found loopholes in the building code that allow them to deliver an unfinished structure without any repercussions. Many home buyers do not know what to expect or have knowledge of construction practices and the OBC. A professional Inspector who follows the Tarion Construction Performance Guidelines and is trained and follows a specific process will go through the exterior and interior of the house in detail and report on all issues. As opposed to the builder representative who works FOR THE BUILDER, the inspector works for YOU.

The 30-Day Inspection and the 1-Year inspection are the most important stages of the process because a lot of issues are covered. After the first year passes, the homeowner is left on their own when it comes to workmanship, errors, etc. I have heard many times a homeowner being told this by the builder: “Sorry, you should have done an inspection!”

FAQs

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The Inspection Process

Before I get into that, we need to briefly discuss how a home inspector views, or should I say, inspects a property.  A home inspector uses a PROCESS and I want to emphasize the word process here because it is the key to success in the industry moving forward.  The process does not change on a per-house basis either.  Inspectors will arrive on-site and take notes on the macro and micro perspectives of the property.  Make keynotes on the exterior and interior to determine that interior components are installed correctly and performing as intended (i.e. venting exhausts, etc).  Inspectors, or should I say good inspectors, start with exterior components, cladding, windows, doors, roof, etc and then move to the interior where they will typically start in the basement and work up.  All while educating you about the property.  This is the short version of what we do.

This real process will take roughly two hours depending on the size of the home and the condition that it is in at the time of the inspection.  From here the inspector will put together a detailed report for the client that covers not only the defects, maintenance items, updates but also key data like the age of mechanical systems such as the furnace, water heater and air conditioner.

What many don’t know is that this process of inspection needs to flow with how the report is written so that we can articulate findings in a clear and concise manner.  

Whole Home vs Specific Trade Knowledge

Now that I have established how the inspection process should work in a perfect world, I can make comparisons to the differences an inspector will have to a contractor.  First off, an inspector is more of a jack of all trades in that we have been trained in defect recognition for all components of the home.  Whereas contractors typically have stronger knowledge in some areas and then contract out the electrical, plumbing, etc.  This is what should be done but it isn’t always the case when fast flips are concerned.

Inspectors will observe and report, but using advanced diagnostic tools such as Infrared, moisture detection devices, roof scopes, etc.  Contractors tend to give opinions on specific problems or to update existing components but will often lack defect recognition and use only speculation.  They are usually trying to up-sell at this point.

Let’s Circle back again to the word process because this goes hand in hand with the training of a home inspector.  A contractor does not follow a process, nor are they trained in defect recognition.  A contractor is someone that you need if repairs are required but without a process to identify defects you are likely going to have a lengthy quote for items that may not need to be updated or repaired.

Educating the Home Owner

Furthermore, your home inspector should teach you about your home, be able to identify defective items or nearing the end of service life items and general maintenance.  This information will be delivered to you in a clear and concise reporting format that should prioritize the findings.  Summary concerns are issues in which your inspector recommends repairs, usually immediate and to be completed by a qualified contractor or respective professional with certain expertise.  This is where the contractor comes in.  

Conclusion

This blog was intended to aid consumers in identifying the differences between inspectors and contractors.  I hope you can now see how both go hand in hand.  Though, training is much different for each.  By no means will a home inspector be an expert in any one given area, but they should be qualified enough to identify defects and who can fix them.  It happens all too often that contractors will throw inspectors under the bus to get a job by stating “that is not to code” or “the inspector should have caught that”.   Remember that code is always changing; if it was lawfully installed in the home when it was built then most likely it is grandfathered to this day.  A home inspection is more than just a checklist of repairs; it is training on how to take care of your property.

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