Home inspector often cannot see cracks inside furnace
Q. We bought our home several months ago, and our home inspector found no specific problems with the furnace. He said it was old and should be serviced by a heating company. When winter approached, we hired an HVAC contractor. He found a large crack in the heat exchanger, easily seen when the front cover was removed from the furnace. So now we need a new furnace, which will cost about $3,500. When we called our home inspector, he refused to take responsibility for the crack. Shouldn't he be liable for missing this defect?
A. Home inspectors specifically disclaim heat exchangers in furnaces because cracks are often in locations where they cannot be seen without dismantling the furnace. Without this disclaimer, inspectors would be liable for defects they could not have seen. Unfortunately, some inspectors take this disclaimer too far, applying it to cracks that are readily visible to an inspector who takes the time to look.
If the crack was visible without dismantling the furnace, the home inspector, in my opinion, should take responsibility for overlooking it. However, there are some variables that could influence this opinion.
Your inspector advised you the furnace was old and should be professionally serviced. The time frame for this recommendation is critically important. If the inspector recommended that it be serviced, without specifying when, or if he advised having this done before winter, then his liability is substantial. However, if he recommended having it serviced before close of escrow, then you would be liable for having waited until winter.
On the other hand, if the crack was plainly visible by merely removing the furnace cover panel, the home inspector is liable, regardless of disclaimers for heat exchangers because defects that are visible and accessible are generally considered to be within the scope of a home inspection.
You should insist that the home inspector at least look at the crack before disclaiming it. If he is unwilling to do so, some professional legal help may persuade him.
Q. Our home is on city water, but it has an old well. Before we bought it, the seller said, “You don't really want to hook up the old well.” When we asked why, he said, “You'll find out.” At the time, this didn't seem important, so we dismissed it and closed the deal. Three months later, we received notice from the Environmental Protection Agency that an old gasoline tank leaked into the well and we are required to do an environmental cleanup. What should we do?
A. When a seller says, “You'll find out,” rather than telling you the whole story, that answer is unacceptable. Your response should have been, “What do you mean, I'll find out? I want to know now what is wrong with the well.” Unfortunately, no one was there to advise you accordingly.
The seller was apparently aware of the problem and chose to withhold the details. Failure to disclose environmental contamination is a violation of law in most states. You should consult an attorney to learn what recourse is available to you under law.
Ÿ E-mail questions to Barry Stone through his website, housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.
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