The Importance of a Home Inspection When Buying a Condominium Unit in The Greater Toronto Area
- Solex Group Professional Home Inspection
- Apr 22
- 6 min read
Updated: May 3
Introduction
Purchasing a condominium unit within a highrise/multi-unit building is a significant investment and for many, a major life milestone. In the Greater Toronto Area (GTA), where the real estate market continues to evolve with increased vertical housing developments, condominium units represent an attractive option for first-time buyers, downsizers, and investors alike. However, amid the excitement of acquiring a new property, buyers often overlook a crucial step: the home inspection.
Unlike freehold homes, condominium units present unique challenges and structural distinctions that often lead buyers to believe a home inspection is unnecessary. After all, doesn't the condo corporation maintain the building? While this is partially true, this assumption can lead to unforeseen costs, safety issues, or even legal trouble.
This article delves into the technical and legal importance of conducting a home inspection when buying a condominium unit in Ontario. It aims to educate prospective buyers, real estate professionals, and property investors on what a condo inspection involves, what issues it can reveal, and why it is a critical part of the due diligence process.
Understanding Condominium Ownership in Ontario
Before diving into inspections, it's essential to understand what you’re buying when you purchase a condo unit in Ontario.
Condominium ownership consists of:
Unit Ownership: This is the private living space that is legally owned by the buyer.
Common Elements: These include lobbies, elevators, exterior walls, roofs, hallways, and in many cases, balconies, windows, and HVAC systems. These areas are owned collectively by all unit owners through the condominium corporation.
In Ontario, condominiums are governed by the Condominium Act, 1998, which outlines the rights and responsibilities of owners, boards, and developers. While the condo corporation is responsible for maintaining and repairing common elements, individual owners are responsible for their units - and this is where inspections become particularly important.
Why Some Buyers Skip Inspections
Many buyers assume that since major systems and structures fall under the condominium corporation’s responsibility, inspecting the unit is redundant. However, this is quite an oversimplification.
Common Misconceptions:
"The condo board handles all repairs."Only partially true - while they manage common elements, problems originating in the unit (e.g., plumbing issues/leaks, improper/unsafe electrical, HVAC systems that are inoperative or at/past their life expectancies) fall to the owner.
"New condos don’t need inspections."Even new builds can have defects, often referred to as “construction deficiencies.” A professional home inspecor has the training to identify issues that a lay person may oversee during the Tarion warranty pre-delivery inspection (PDI).
"A status certificate review is enough."While crucial for assessing the financial and legal standing of the condo corporation, a status certificate says nothing about the physical state of the unit.
What a Condo Unit Inspection Covers
A qualified home inspector will tailor their approach for condo units, focusing primarily on components within the buyer’s responsibility, but also noting any observable issues with any obvious adjacent common elements that could impact the unit, such as a balcony that is for the sole use of the owner or resident.
Some Key Areas Covered in a Condo Inspection:
Interior structure and finishes:Damaged or compromised structural components, damaged floor finishes posing trap/fall hazards, active water damage from within or outside the unit, etc. Note: cosmetic issues are excluded (outside the scope of a home inspection).
Electrical system:Testing of outlets, fixtures/lights, the presence of life safety systems such as smoke detectors, and an inspection of the electrical panel for any hazards, etc.
Plumbing system:Inspection of visible pipes/plumbing, testing of faucets/fixtures, drains, etc. Note: operation of shut off valves are excluded and should not be operated (without owner's concent) unless there is a condition.
Heating, Ventilation, and Air Conditioning (HVAC):Inspect the HVAC system (which can be independent, integrated/combination, or centralized), check the age of equipment and operation of heating/cooling and ventilation equipment, including any in-line or booster fans, etc.
Windows and doors:Inspect windows and doors for integrity, function, safety, etc.
Appliances:Appliances are outside the scope of a home inspection (e.g., stoves, washers, etc.) but may be operated by the buyer for basic functionality. Note: you don't need a home inspector to tell you a refrigerator or stove is working. We do stress the importance of testing all appliances during your final visit before taking possession (about 1 day before your closing date) where you would conduct a basic inspection of the unit one last time with your agent and report to your lawyer of any meaningful issues.
Moisture intrusion:In addition to a visual inspection for active moisture leaks, some inspectors can perform a thermal scan and take moisture readings in key areas to check for active moisture issues.
Avoiding costly or time-consuming problems – here are some examples of issues found during Condo Inspections
Condo inspections can identify problems that may not be detected during just a "walkthrough":
Problematic plumbing pipes, improper installations/alterations or leaks, poor operation or inoperative faucets/fixtures...
Unsafe electrical work and installations, alterations, missing or expired life safety devices...
HVAC systems at or past their life expectancies, inoperative, improperly installed in the unit...
Improper or poor/shoddy renovations, health and safety issues in the unit...
Insulation issues, old/dated/drafty/unsafe windows, damaged windows/doors...
Active leaks from other units or common elements such as through the building envelope (wall or roof), building pipes (pottable water supply / sanitary drains / storm drains / sprinkler system) if directly affecting the subject unit...
Some of these issues could cost thousands to remedy after closing - and fall squarely on the unit owner.
The Legal and Financial Implications
Failing to perform an inspection before closing can have real consequences, particularly when it comes to legal rights and financial liability.
Ontario Real Estate Law Context:
Ontario real estate transactions follow a buyer beware approach. Without a clause in the Agreement of Purchase and Sale making the sale conditional on a satisfactory inspection, the buyer assumes risk.
If an undisclosed issue arises post-purchase and was discoverable through an inspection, the buyer has little legal recourse.
Insurance and Warranty Considerations:
Tarion Warranty (for new condos):Covers specific defects, but doesn’t replace an inspection. For instance, Tarion doesn’t cover cosmetic issues or problems caused by poor maintenance.
Home Insurance:Insurers may deny claims/coverage or charge higher premiums for units with known risks (e.g., Kitec pipes, aluminum wiring, outdated HVAC and electrical, etc.).
The Role of the Status Certificate
While not a substitute for a home inspection, the status certificate plays a complementary role. It discloses the financial health of the condo corporation, pending litigation, and planned major repairs. A prudent buyer with the help of their lawyer, should also review the status certificate before making their final decision.
A home inspection might uncover unit-specific defects while the status certificate could hint at broader systemic issues (e.g., building-wide plumbing pipe replacement, or an underground concrete parking structure rehabilitation project) that could lead to future special assessments or maintenance fee increases.
Hiring the Right Inspector
Not all home inspectors are equally qualified, and few specialize in condominium units. In Ontario, home inspectors are currently unregulated, though many are members of organizations like:
Ontario Association of Home Inspectors (OAHI)
Canadian Association of Home and Property Inspectors (CAHPI)
When hiring an inspector, ensure they:
Have experience with condo buildings/units and are familiar with the basics of Ontario’s condominium laws – ask the inspector for specifics
Offer written reports with photos and recommendations with timeframes.
Carry Errors & Omissions (E&O) insurance.
Conclusion
In the dynamic Ontario condominium market, a home inspection remains an indispensable part of the buying process. While condominium purchases differ from freehold homes in terms of legal structure and maintenance responsibilities, they are not immune to defects, both hidden and visible. The relatively modest cost of an inspection can prevent thousands in future repairs and provide some peace of mind during a significant financial transaction.
Buyers, especially first-timers, should work with knowledgeable real estate agents, legal professionals, and qualified/experienced inspectors to ensure a thorough due diligence process. In an environment where property values are high, a careful and informed approach is the best protection a buyer can have.
Solex Group Inspection inspectors are dedicated professionals who have the experience to inspect condominium units. Some have been former Board Directors, have personally owned condo units, and have even personally renovated condo units. We know Condo's better than most Home Inspectors!
Comments