Buyer Beware of expressions such as "fully renovated", "turn-key", "move-in-condition" and "up-to-date"

Doing pre-purchase inspections is a great learning experience. We learn from other people's mistakes. For a pre-purchase inspection to be useful to a buyer it has to be really thorough. The Inspector has to be capable of discerning the real meaning of some very common expressions used by real estate agents in their listings of properties for sale. It is all too common to read descriptions such as "fully renovated", "turn-key", "move-in condition" and "up to date".

Because of the need for affordable housing at a time when there is a lack of supply, consumer protection has fallen by the wayside. Houses are being sold without legal warranty as to quality thereby eliminating the possibility of making claims for hidden or latent defects. Real estate agents are using a clause to the effect that the choice of the building inspector has to be agreed to by the vendor even though the mandatory form approved by the provincial real estate board states "inspection by a person chosen by the buyer".

The implication of a fully renovated property and all the similar expressions mentioned above is that an older existing renovated property respects the current building code, not the standards of when the house was initially built or last renovated. If it is new construction then a permit would have been issued by the municipal urban planning department approving the plans and specs which have to comply with current building code standards.

Unfortunately, building inspections have been deregulated in most jurisdictions. It used to be that well-qualified and practicing architects and engineers used to do pre-purchase inspections as an expertise back in the 50s up to the 70s. By the 90s, deregulation was in full force throughout North America. It fosters the creation of low-paying jobs to which many politicians aspire. For example, the new [1994] Québec Civil Code actually states that a pre-purchase inspection can be done by the buyer, that there is no need of expert assistance, and that whoever does it has to be prudent and diligent. Fortunately, enough jurisprudence has been established by clear-thinking judges which would encourage a buyer of an older existing property to be prepared for inevitable renovations despite the inaccurate descriptions used by agents.

The situation is made more dire at a time such as this when there is a housing crisis, a shortage of available housing. To make it possible for non-experts to do pre-purchase inspections, they have been advised [by virtue of the standards set out by the real estate board] not to get into matters regarding the building code. I consider that the essence of determining serious apparent defects. Fully renovated and all the similar expressions mentioned above should mean code compliance where health and safety matters are concerned. The building code is updated every 5 years to provide a minimum standard for health and safety. Just because a buyer may have renovated the bathrooms and the kitchen [a favorite upgrade encouraged by agents] doesn't mean that there has been a complete renovation or that a house is fully renovated. Furthermore, real estate agents have been given the freedom to recommend inspectors which is against the law in some jurisdictions [e.g. Boston]. That is a classic example of a conflict of interest. It has resulted in checklist-type reports which are computer generated from purchased software. Reports have become too long [60+ pages] and superficial. Buyers just want the bottom line and don't bother reading these reports which may appear technical but can be produced on-site or within the hour.

Any wonder why I am being boycotted by real estate agents?