Pay for property inspectors on passed deal?

[Account Closed]

I was reading Brandon Turner's rental property book and I wanted some more information about paying for property inspectors.

Let's say you find a property that fits your criteria, crunch the numbers and find out it's a good deal.  So you send a property inspector to check for problems and maybe other people as well, like a plumbing inspector.  You find out that the problems of the property would cause HUGE financial issues in the future, so you pass on buying the property.  

1)  You paid for the inspection services and in the end you didn't buy the property.  Wasn't that whole process a waste of time and money then?  I assume you can't get your money back?

2)  Also, while I'm waiting for these inspections, aren't I on a time limit?  Good deals on the market don't stay on the market for too long, so I would want to grab it as quickly as possible.  However, if I'm waiting for my inspection to be completed, couldn't the property get snatched up by someone else during that time?  Is there a way to prevent anyone else from getting it?  

3)  Another question, does anyone know if there's title companies or something similar in Canada?  They sound essential to any form of real-estate investing and I would love to know more about the local ones.

[Roy N.]

Originally posted by @Account Closed:

I was reading Brandon Turner's rental property book and I wanted some more information about paying for property inspectors.

Let's say you find a property that fits your criteria, crunch the numbers and find out it's a good deal.  So you send a property inspector to check for problems and maybe other people as well, like a plumbing inspector.  You find out that the problems of the property would cause HUGE financial issues in the future, so you pass on buying the property.  

1)  You paid for the inspection services and in the end you didn't buy the property.  Wasn't that whole process a waste of time and money then?  I assume you can't get your money back?

It's a cost of doing business. Budget for it as part of your marketing/search/acquisition costs.

Alternatively, if your inspector finds a major issue with the property, you can request the Vendor remedy it (or reduce the price sufficiently that you can address the issue).

Normally, you would negotiate the diligence / inspection period as part of arriving at an agreement for purchase and sale. On a residential property, you should be able to line-up an inspection within 2-weeks. On large properties, diligence can take 45 - 90 days.

 In all jurisdictions in Canada Closing is handled by attorneys.