Due diligence & inspections

Seven steps through the conditional period

Typical window is 5–10 business days in GTA resale. Every deadline is in your Agreement of Purchase and Sale.

1. 1

   Calendar every deadline the day you are accepted

   Day 1

   Your APS lists dates to waive or fulfill each condition — financing, inspection, status certificate, lawyer review. Missing a deadline can void your protection or, worse, make you liable when you thought you still had an out.

   Send the fully signed APS to your lawyer and mortgage broker immediately. For condos, confirm who orders the status certificate and whether rush fees apply.

   • Inspection condition deadline — usually 5–7 business days from acceptance
   • Financing condition — broker needs the APS and property details same day
   • Status certificate — condos; allow 10 business days per Condominium Act unless rush ordered
   • Your agent should send you a one-page timeline with every date highlighted
2. 2

   Book a qualified home inspector — freehold and townhomes

   Day 1–2

   Choose a licensed home inspector with errors and omissions insurance — not a friend who does renovations. Standard inspections cover visible structure, roof, exterior, plumbing, electrical, heating, and interior. They are visual inspections, not destructive testing.

   Inspections typically take 2–4 hours depending on size. Budget $500–$800+ in the GTA for a standard single-family home; add-ons cost extra. Attend in person if you can — you learn more walking through with the inspector than reading the report alone.

   • Book immediately after acceptance — do not wait until day four of a five-day condition
   • Confirm scope: standard home, condo unit (limited common elements), or specialty add-ons
   • Older homes may need electrical, chimney, or sewer scope add-ons
   • Newer builds may still need inspection — builder warranties do not replace pre-closing review
3. 3

   Understand what the inspection covers — and what it does not

   Inspection day

   Inspectors report on visible defects and deferred maintenance. They do not open walls, test for all environmental hazards, or guarantee future performance. A clean report does not mean zero risk — it means nothing major was visible that day.

   Focus on big-ticket systems: foundation cracks and moisture, roof age and wear, electrical panel capacity and wiring type (knob-and-tube or aluminum wiring are red flags), plumbing leaks and supply type, HVAC age, and grading or drainage toward the foundation.

   • Roof — age, missing shingles, sagging; replacement is often $15,000–$30,000+
   • Foundation — cracks, water stains, musty basement smell
   • Electrical — panel amperage, outdated wiring, missing GFCI protection
   • Plumbing — galvanized or polybutylene supply lines, slow drains, water heater age
   • Exterior — grading, downspouts, siding, deck structure and ledger attachment
4. 4

   Read the full report and prioritize issues

   1–2 days after inspection

   Reports list safety items, major defects, and minor maintenance. Safety and structural issues come first — everything else is negotiable or budgetable. Get repair quotes for anything you would ask the seller to fix or credit.

   Share the report with your agent and lawyer before you respond to the seller. Your agent drafts a request for repairs, price adjustment, or credit — or advises walking away if the problems exceed your tolerance or budget.

   • Separate deal-breakers from annoyances — a sticky window is not a failed foundation
   • Get two quotes on major items before negotiating — sellers respect numbers
   • Document everything in writing through your agent — verbal promises do not bind
   • If the seller refuses all remedies, you can exit under the inspection condition if the APS allows
5. 5

   Condo due diligence — status certificate and building health

   Parallel with inspection

   For resale condos, the status certificate is a disclosure package from the corporation covering monthly fees, special assessments, reserve fund balance, insurance, rules, lawsuits, and management. Your lawyer reviews it — not your agent alone.

   Red flags: low reserve fund relative to building age, pending special assessment, active litigation, high ratio of owner-occupied vs rented units (lenders care), restrictive rules on pets or rentals, and fee increases well above inflation.

   • Order early — standard delivery can take up to 10 business days; rush costs more
   • Review reserve fund study age — older studies may understate upcoming repairs
   • Read rules on renovations, parking, storage, and short-term rentals
   • Visit the building at different times; check elevators, hallways, and amenities
   • Your lender may decline the building — financing condition covers this outcome
6. 6

   Confirm firm financing on this property

   Before financing waiver

   Pre-approval is not final approval. Your broker submits the APS, orders an appraisal if required, and issues a firm commitment letter. Appraisal below purchase price may require more down payment or renegotiation with the seller.

   Do not make large purchases, take new credit, or change jobs during the conditional period. Lenders re-verify employment and credit before funding.

   • Appraisal gap — common in fast markets; have a plan before you waive financing
   • Condo lenders review status certificate — denial is rare but possible
   • Get written firm commitment — verbal OK from broker is not enough to waive
   • Rate hold and product match the APS closing date
7. 7

   Lawyer review, then waive — or walk away

   Last 1–2 days of conditional period

   Your lawyer reviews the APS, status certificate (condos), and any inspection-related amendments before you waive. Once all conditions are waived, the deal is firm — you cannot exit without legal grounds and you risk losing your deposit.

   If inspection, financing, or status certificate results are unacceptable, exercise your condition before the deadline. Your agent and lawyer confirm the notice wording. Walking away under a valid condition returns your deposit when the APS is written correctly.

   • Never waive inspection because the seller pressures you — deadline is contractual
   • Keep a paper trail of all amendments and waivers
   • After waiver, book moving, insurance, and utility transfers
   • Next guide: closing the deal — lawyer, walkthrough, and possession day