In hotly contested markets, many Buyers are facing the dilemma of dropping their option for a home inspection in order to make their offers competitive in a multiple-bid situation. The concern with this decision is exacerbated with homes built in the mid- to late-1970s where urea formaldehyde foam insulation (UFFI) was commonly used in construction. Due to perceived health issues, the product was banned by the Canadian government in 1980.
Most sale agreements in Ontario include a clause where the Seller warrants that to the best of their knowledge there is not and was never any UFFI in the home. What is important to note is that this warranty extends beyond the closing of the transaction. The Seller and agent can both face litigation if the warranty is proven false.
It is important to understand and be educated regarding the implication of the UFFI warranty.