There have been recent changes to the standard agreement for sale and purchase of real estate, and one of them is in relation to building reports. The front page has a yes/no option for building report required. Where yes is chosen, clause 9.3 applies, and that gives the purchaser 10 working days to obtain a report that is satisfactory to the purchaser, on the basis of an objective assessment. The report must be prepared in good faith by a suitably-qualified building inspector in accordance with accepted principles and methods.
If the purchaser avoids this agreement for non-fulfilment of the condition, the purchaser must provide the vendor immediately upon request with a copy of the building inspector’s report. This is a new provision.
The question is – who is a suitably qualified building inspector? In the larger cities there are plenty of fully qualified building inspectors. In the provinces, there are several competent building inspectors who don’t necessarily have the recommended qualifications. The Courts will have to decide whether these building inspectors are “suitably-qualified” if challenged by a Vendor. I hope that they will be accepted. The change means that a purchaser can not avoid a contract under this clause without a “proper” written building inspection report. We can draft an alternative clause, but the Vendor may not accept it.