Inspections and Appraisals
Property Inspections
Most buyers will have your property inspected by a licensed home inspector within the timeframe outlined in the purchase agreement. Some buyers may hire multiple specialists to evaluate specific areas of the home, such as the roof, HVAC system, foundation, or structure.
If the agreement is conditional on financing, the property will also be appraised by a licensed appraiser to confirm its value for the lending institution. This ensures the lender’s investment is accurate. For commercial properties, buyers may require additional reviews, such as environmental audits or soil tests, depending on lender requirements.
The Closing Agent
In Ontario, a real estate lawyer acts as the closing agent. Their role is to review and certify the property title, ensuring it is free and clear of encumbrances such as mortgages, liens, leases, or restrictions. They also ensure that any new encumbrances are properly registered at the time of closing.
Contingencies
A contingency is a condition that must be satisfied before a contract becomes fully binding. Common contingencies include:
- Satisfactory home inspection reports
- Approval of financing and insurance
- Review of all relevant documents, including title and disclosure reports
Buyers have the right to inspect the property and may request a variety of tests, such as:
- Roof, plumbing, electrical, HVAC systems
- Termite or pest inspection
- Chimney or fireplace evaluation
- Property surveys, well or septic inspections
- Pools, spas, or landscaping evaluations
- Mold, lead-based paint, or other environmental concerns
After inspections, one of two outcomes typically occurs:
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Milestones are successfully met, contingencies are removed, and the sale moves closer to closing.
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The buyer requests renegotiation, usually related to price or repairs.
Responding objectively and fairly to renegotiation requests while protecting your interests is where a professional listing agent adds real value. With experience navigating London’s diverse housing market, we guide sellers through this process to achieve the best possible outcome.
Loan Approval and Appraisal
We recommend prioritizing buyers with a pre-approval, approval letter, or written loan commitment from a lender, as this provides a stronger guarantee of financing than pre-qualification alone. Once approved, an appraiser will visit your property to verify that the agreed-upon price aligns with market value in London, ON.
