Imagine: you buy a beautiful house, “completely renovated”, as the announcement said, so your family and you move in. Everything is going for the best when, suddenly one morning, a stain on the ceiling of the basement catches your attention. You look and search for the cause without success so you decide to call a building expert. What his investigation will reveal is not reassuring. Read our article or watch our short video (french only) to find out what happened to one of our clients and see how flipped houses can hide several skeletons in their closets.

When our client – let’s call him Mr. House – visited the house that was to become his next home, he was far from suspecting the turn this acquisition would take a few years down the road. At first, the house looked perfect and the real estate agent confirmed that it had been completely renovated. Reassured, Mr. House had the house inspected for extra protection. The inspection reveals nothing special, which was to be expected since everything was  new and freshly painted and thus shows no signs of any important defects.

The transaction went ahead. Mr. House moved in with his family and the first years went without a hitch. Then, two years later, he notices a stain on the ceiling of the basement. Curious, he opens the ceiling to know what’s behind it. Unfortunately, he is unable to determine the exact source and decides to contact our building expert service. He wants a professional to shed light on his problem before investing large amounts in remedial work. It is therefore with this goal that our expert comes into play.

Quickly our expert determines that the stain is caused by water leaking from the shower located on the upper floor, but a little away from the stain in question. It’s pretty subtle! The water follows a particular path, passes through the ceramic joints and through the waterproofing membrane. With the consent of the owner, a few ceramic tiles in the shower are removed to see if the membrane, which must ensure a perfect seal, is in good condition or not. Unfortunately, it’s completely damaged and shows obvious signs of negligence during its installation: screws have even been used to hold the membrane in place…

It’s a bit like fastening your pool canvas in place with screws or nails!

Wanting to check the extent of the damage, the expert practices an additional opening in the ceiling of the basement and realizes that water leakage is not the only problem: joists have been cut in half to allow the shower drain to pass, which is affecting the structural integrity of the entire floor. Furthermore, the shower drain pipe didn’t even have a p-trap to prevent sewer odors from coming through the drain. So it’s not only one problem but a couple of aspects that don’t follow the Building and Plumbing Code.

Armed with the building expert’s report and his lawyer’s legal advice, Mr. House sued the seller for hidden vice. Like it often happens with such cases, the building was not in the name of the entrepreneur, but rather in the name of one of his relatives. The judge did not accept the testimony of the defense, as the latter did not even consider it important to go to the scene to verify the facts, so Mr. House won his case and obtained full compensation for the remedial work because of the hidden defect. Total claim: $ 13,000.00.

Meaning of the story: pay attention when buying of a flipped house. It is very difficult to know the real condition  of the building because of its beautiful and flashy finish. Here are some tips from our experts:

1. Since residential renovation work is not regulated, make sure that it has been done by skilled workers who ideally have their competency certificates.
2. Ask the seller for all the information and documents related to the renovation work that’s been carried out (plans and specifications, invoices, photos of work, guarantees, etc.).
3. Don’t be fooled by all the razzle-dazzle. Do not judge the house only on its aesthetic aspect, but based on its quality above all.
4. Have a pre-purchase inspection done by a competent and professional inspector who has expertise with this type of building.
5. If in doubt, allow yourself to visit other houses. It is sometimes better to pay less for a house and have it renovated to our taste than to pay a lot of money for a box full of bad surprises.

Do you fear you might be confronted with a hidden defect? Are you considering selling or acquiring a home? Our inspectors are available to offer you quality inspections during the course of any real estate transaction or in case of technical or legal problems.

In closing, did you know that…

• According to the Quebec Federation of Real Estate Boards (QFREB), real estate flips occupied 2.1% of the market in 2016
• 72% of flipped house sales are for single-family homes and 23% for condos
• The average profit of a flip is 24% of the initial investment