What happens if I find that the appliances in the property are not working?

If you have discovered that some of the appliances in the home you are purchasing do not work, first, review your Agreement of Purchase and Sale and determine if it contains a warranty clause stating that the seller represents and warrants that the appliances will be in working order on closing.

If you have discovered the defect prior to closing, ask your lawyer to send a letter to the seller’s lawyer and ask that the seller carry out the required repairs. You should note however, that in most circumstances, you will be required to close the transaction regardless of the steps that the seller takes (or fails to take) with respect to the repairs. In other words, if the seller fails to carry out the required repairs, the law will require the buyer to close and sue for breach of warranty after closing.

If you have discovered the defect after closing, ask your lawyer to send a letter to the seller’s lawyer asking them to cover the costs of the required repairs. If the seller refuses to pay the costs of the repairs, you should decide if you wish to commence legal action against the seller. 

Lawsuits in Ontario are extremely expensive and time consuming. A simple lawsuit over a broken dishwasher for example can cost you tens of thousands of dollars and take over 2 years to get before a judge. Given the complexity and costs of litigation, in most circumstances, buyers end up paying the costs of the required repairs and learn a lesson that in order to avoid similar situations in the future, they should include an inspection condition in their Agreement of Purchase and Sale and deal with the responsibility of repairing any such defects prior to waiving the inspection condition.