Featuring America's Home Inspector: Nationally Syndicated Columnist, Barry Stone

House Need To Be Rewired?

The House Detective: by Barry Stone, Certified Home Inspector

Dear Barry:   We just bought a home but can’t move in because of major electrical problems. Before we bought it, our home inspector found a few electrical defects, but he said these were minor, so we waited till the escrow closed before making repairs. Our electrician now says that the previous owner tampered with the wiring, and the entire house needs to be rewired. But we don’t have enough money to pay for that kind of repair. Shouldn’t our home inspector have reported this situation, and isn’t he liable for the cost of rewiring?  Carol

Dear Carol:   If your home inspector failed to identify visible defects in the electrical wiring, then he is probably liable for the repair costs, depending on liability limits in the inspection contract and liability laws in your state. However, before rushing to judgment regarding liability, there are other questions that should be answered.

Presently, you have two conflicting opinions about the electrical system. The home inspector says there are some minor defects (whatever that means), and the electrician says the house needs to be rewired. The question is, “Who is correct?” Two possibilities come to mind: either you have a home inspector who overlooked significant defects or an electrician trying to land a big job. This uncertainty should be resolved before taking action.

One thing to keep in mind is that it’s extremely unusual for a house to require total rewiring. Most electrical defects are specific and can usually be repaired without replacing all of the wires. If the previous owner of your home “tampered with the wiring,” it is hard to imagine that he affected all of the circuits.

To gain some clarity on the situation, you should get a third opinion from another electrician. If the second electrician agrees that the house needs to be rewired, the home inspector should be notified and should come to the property to explain why he failed to correctly evaluate the electrical system. At that point, he should be asked to file a claim on his errors and omissions insurance, assuming that he has insurance.

Additionally, the seller of the home should not be dismissed from potential liability. The electrical code requires that there be a permit for altering the wiring in a home. If the seller “tampered” with the wiring in ways that affect safety, the work was most likely not permitted. If that is the case, the seller should have disclosed this prior to sale of the property. If no disclosure was made, the seller should pay for the electrical repairs.

Aftermath of an As-Is Sale

The House Detective: by Barry Stone, Certified Home Inspector

Dear Barry:  We just purchased a home “as is.” The previous owner signed a mold disclosure statement that says there is no known mold. After moving in, we found that one entire bathroom wall is rotted with mold, and the roof has mold as well. Isn’t the seller liable for withholding this information?  Klemmy

Dear Klemmy:  Your question raises more than one issue. To begin, sellers are required to disclose all known defects, even when the sale is “as-is.” If the bathroom walls were covered with apparent mold, that should have been disclosed. However, mold does not cause walls to rot. The primary concern with mold is the release of airborne spores that can be harmful to breathe. If the walls seem rotted, there is probably some moisture damage that should also have been disclosed.

Before closing escrow on a property, it is customary for the buyers to do a final walk-through inspection. If you had done this, the defective bathroom wall would probably have been seen. Therefore, you may not have been exercising sufficient due diligence as buyers.

As for mold on the roof, that would be highly unusual and should be confirmed by a qualified mold professional. What you see on the roof may actually be lichen, a combination of algae and fungus that commonly grows on the north sides of trees and the north slopes of roofs. Lichen is not mold and is not known to be harmful to people or to roofs.

The final issue is whether you hired a home inspector as part of your due diligence. Failure to have a professional home inspection is a common mistake among buyers making an as-is purchase. Buying a house as-is means that the seller will not make repairs. It does not mean that you buy the property with blindfolds on: without finding out what you are buying in as-is condition.

If you bought the house without a home inspection, now is the time to find a highly qualified inspector to see what other defects were not disclosed. After you get the inspection report, you can consider whether to hold the seller liable for non-disclosure.

Home Inspector Didn’t Report Wood Rot

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry:We purchased our home about six months ago, and the home inspector said nothing about wood rot. I recently discovered rotted eave boards when I was repainting the exterior. Shouldn’t this have been reported by our home inspector?  John

Dear John:  Wood rot is caused by fungus. In most states, inspection for wood destroying organisms such as fungus is not within the scope of a home inspection. Damage of this kind is typically covered by a licensed pest control operator, commonly known as a termite inspector. You should check your records to see if there was a pest report when you purchased the property. If so, call that company and ask them to re-inspect the eaves around your home.

Code Violations Not Found By Inspectors

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry:We bought a brand new home about a year ago and hired a home inspector before closing. The inspector found no problems and said the house was perfect. Since then, we’ve learned that there are code violations in the plumbing and on the roof. How could the house be sold if it didn’t meet code? Is the building department responsible for approving the construction, or what? And if they missed the problems, why didn’t our home inspector find them? Is anyone responsible, or are we just out of luck?  Sharon

Dear Sharon:  That is a tall list of issues: the quality of new construction and the reliability of building and home inspections. So let’s start with the city inspection.

Without knowing which code violations are involved, little can be said here about what the municipal building inspector should have seen. In general, however, city and county building inspections are usually short in duration and not comprehensive in scope. For example, municipal inspectors typically do not walk on roofs or crawl through attics. Therefore, defects in those areas are likely to go unnoticed. The final inspection of a new home usually occurs before the electrical and gas services are turned on. Therefore, outlets are not tested for grounding and polarity, GFCI performance is not verified, and gas fixtures such as stoves, furnaces, and water heaters are not functionally evaluated.

As for liability, municipal inspectors have none, as specified in chapter one of the building code. In their defense, however, it should be noted that most local building departments are under-funded and under-staffed, so that most of their inspections are conducted with limited time for thoroughness. This brings us to the homebuyers’ next line of defense, the home inspector.

The home inspection industry claims that it does not perform code compliance inspections, but this is only true in a limited sense. The purpose of a home inspection is to disclose visible defects, in accordance with professional standards. Yet many of the defects that home inspectors disclose involve code violations. For example, a hollow core door in a garage firewall is a visible defect that home inspectors routinely report. Why is it a defect? Because it violates the building code. Therefore, visible defects that violate building codes are usually within the scope of a home inspection and should be reported. If not reported, the home inspector would be liable.

Furthermore, when a home inspector tells you a house has no defects, that should warn you that the inspection was not very thorough. A home with no defects is as fanciful and unlikely as a pot of gold at the end of a rainbow. Homes are made by humans. Humans are not perfect. Therefore, no homes are perfect. All homes, including brand new ones, have imperfections, to lesser or larger degrees.

In cases involving new homes, the buck stops at the doorstep of the builder. Regardless of what was found or overlooked by the inspectors, the builder must guaranty the quality of the construction. If code violations are found when the building is one year old, the builder is still responsible.

To obtain a comprehensive list of the inherent defects in your home, you need a more complete home inspection than the one you received a year ago. Therefore, find the most qualified and experienced home inspector in your area. Then you can present the list of findings to the person or company who constructed the home.

Home Inspector Overlooked Furnace Problem

The House Detective:  by Barry Stone, Certified Home Inspector

Dear Barry:Before we bought our home, we hired an ASHI certified home inspector. We were with him for most of the inspection, but he didn’t spend much time looking at the furnace, and now we have a major problem. The inspection report says the system is “normal,” whatever that means, and recommends “routine maintenance and cleaning.” When we moved in, we hired a heating contractor to clean and service the unit, as recommended by the inspector. The heating guy removed the cover panel and found large rust holes on the inside. The unit puts out carbon monoxide, so it has to be replaced. All our home inspector did was shine a flashlight into a small opening, without removing the cover panel. When we called him about this, he said, “I told you to have the heater cleaned before closing escrow.”  But the inspection report says nothing about before the close. Do you think our home inspector was negligent?  Randy

Dear Randy:  Inspecting a furnace without removing the cover panels is grossly negligent. It makes as much sense as a podiatrist examining your feet without first removing your shoes. If a home inspector or foot doctor is conducting a diagnosis, visual access is essential.

If your home inspector is certified by ASHI, the American Society of Home Inspectors, he must comply with ASHI Standards of Practice. According to these standards, “the inspector shall inspect the installed heating equipment.” And the definition of “inspect,” according to ASHI standards includes “opening readily openable access panels.” Therefore, failure to remove the access panels on your furnace was a violation of professional standards.

If the heating contractor was able to see rust damage merely by removing the access panels, then your home inspector should have discovered the damage and should now take responsibility for a substandard inspection. If he recommended cleaning and servicing the furnace prior to close, that recommendation should have been in the written report. Verbal recommendations that differ from the written report are legally invalid.

The next question for you home inspector is, “Do you have errors and omissions insurance?” If not, you might consider small claims court.

Dear Barry: We were about to buy an old home until we learned that it has asbestos shingle siding. We’ve read that this material is safe if it is not damaged, but we’re worried about future problems. What do you recommend?  Lane

Dear Lane: Asbestos shingle siding was commonly installed in the 1940’s and early 50’s. It consists of a material knows as transite, a mixture of cement and asbestos fibers. Transite is not regarded as a significant health hazard because it does not release asbestos fibers into the air unless it is ground into dust with power tools.

If you intend to remove or alter the transite shingles, handling, removal, and disposal should be assigned to a specially licensed professional, and this can be very costly. When you eventually resell the home, the presence of asbestos material must be disclosed, and this can adversely affect the interest of some buyers (just as you were deterred), regardless of the relative safety of the material.