House inspector banned by seller’s agents
Q: Our Realtor recommended a home inspector who has a very good reputation for thoroughness and honesty. But sellers’ agent has refused to allow that inspector on the property.
She says the inspector is a “nitpicky deal killer,” and her real estate office will not do business with him. She and her broker say I can choose any other inspector in the area, but not the one my agent recommended. Don't I have the right to hire a home inspector of my choice?
A: Your question raises three issues with regard to the seller's agent and broker: issues of legality, liability and ethics. Let's begin with the legal issues of whether you have the right to a home inspector of your choice. The answer depends largely on the wording of the purchase contract. Most real estate contracts contain clauses such as “inspector of the buyers' choice.” If your contract contains such wording, the sellers’ agent has no right to ban your inspector. If taken before a court of law, your choice would probably be enforced.
Then there is the issue of liability. Regardless of any wording in the purchase contract, agents and brokers who restrict a buyer’s choice of home inspector make themselves liable for any defects that are not disclosed by the home inspector of second choice. Suppose the inspector who is allowed by the sellers’ agent were to miss a significant defect involving the foundation, roofing, electrical wiring, plumbing, etc.? The buyer could hold that agent and her broker liable for having prevented a more qualified inspector from evaluating the property. It could then be alleged that those Realtors were trying to limit the thoroughness of defect disclosure. In a case of that kind, the Realtors’ legal defense might not play well to a jury.
In short, boycotting qualified home inspectors is an indefensible posture for real estate professionals. It increases liability, it is usually a contract violation, and it demonstrates a deficiency of ethics by those agents who do it.
Q: The home we're buying has two furnaces. Our home inspector found cracked heat exchangers in both of them, and we're not sure what to do about this. Should we insist on replacement of the furnaces, or would it be OK to repair them? Should we ask for a price reduction on the home and fix the furnaces later, or is it OK to continue using the furnaces as they are?
A: A cracked heat exchanger is the most hazardous of all furnace defects, because it enables combustion exhaust can enter the house, exposing occupants to deadly carbon monoxide. Therefore, immediate repair or replacement is essential. If the furnaces are relatively new, replacement parts are probably available, which would enable repair rather than replacement. With older furnaces, total replacement is usually the only option.
If you ask for a price reduction on the home, rather than having the furnaces repaired or replaced, get bids from licensed heating contractors so you'll now how much of a reduction is appropriate. Once you take possession, don’t procrastinate on repairs. If, for any reason, the defects were to be forgotten or postponed, someone could begin to use those hazardous furnaces.
• Distributed by Action Coast Publishing. Questions to Barry Stone can be emailed to barry@housedetective.com.