Disclosure problems after escrow closing
Q. We sold our home about six months ago and are now worried about an undisclosed defect. Before selling the property, we did some remodeling work and installed a forced air heater in the master bedroom closet. The new heating system was working perfectly and was approved by the buyers' home inspector. Recently, however, we read that a heater cannot be legally installed in a bedroom closet. Now we're afraid the home we sold may have a serious safety problem. What should we do?
A. You may or may not have a problem, depending on whether this is a gas or electric forced air system. Forced air gas furnaces are definitely forbidden in bedrooms and in adjoining closets. The reason for this restriction is to prevent the consumption of oxygen and the venting of exhaust gases into areas where people may be sleeping. Again, this is not a problem if the heat source is electrical rather than gas. If it is a gas furnace, you may have to pay for the reinstallation of the air unit in an approved location, pending negotiations with the people who bought your home.
(It is interesting to note that the code prohibits gas forced air heaters in bedrooms while allowing gas wall heaters in bedrooms, but inconsistencies in building codes are topics for a future article.)
If the furnace, in fact, has been improperly installed, you now face the complexity of disclosing a significant defect after the close of escrow. This could have thorny consequences, depending upon the buyers' reactions. To unveil this revelation in a tactful and professional manner, you should enlist the services of your Realtor. All agents involved in the transaction should be concerned because they are also exposed to legal liability involving an undisclosed defect, especially if the buyers' agent recommended the home inspector.
The fact that the furnace may have been improperly installed during a remodeling project also raises the question of whether you acquired a building permit for the work that was done. If you did not have a permit, then the plot thickens - another issue you must disclose to the buyers. The solution to this would be to obtain an as-built permit from the local building department. The inspections that would take place under that permit could open any number of additional issues.
Another matter of concern is the fact that the furnace problem was not disclosed by the buyers' home inspector. If the heater is a gas furnace, this raises concerns as to the overall thoroughness of that inspection and the possibility that other significant defects may also have escaped detection. The home inspector in that case should be notified of this situation, and the furnace should be re-evaluated accordingly. In that case, it would also be advisable to hire a second home inspection for a full review of the property.
If you and/or the buyers should decide to have a second home inspection, be sure to hire an inspector with many years of experience and a reputation for thoroughness.
• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.
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