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Electrical nightmare comes after close of escrow

Q: We bought our house two months ago, and our home inspector said the electric service panel needed upgrade. The sellers hired an electrician to install a new 100-amp panel, and our agent led us to believe the house would be rewired. The first night we moved in, the power to the kitchen outlets went out, so we used extension cords for the appliances. This caused another circuit breaker to trip, shutting off most of the lights in the house. Two days later, one of the living room outlets began to burn up, so we turned off the power to the house and have been camping out ever since. We thought we had made all the right moves before buying this house, but now we've got all these electrical problems. It doesn't seem right that we should have to pay to fix the wiring. What can we do? Is our agent liable to have the house rewired?

A: When you say, “our agent led us to believe that the entire house would be rewired,” it is not clear what communications were made. What matters most is what was stated in writing. Everything else can be argued and denied.

It appears that the electrical system in your home needed more than an upgraded panel. You apparently have some very old wiring that is inadequate for modern use. If that is the case, your home inspector may have overlooked some significant issues. An upgrade of the entire electrical system, rather than just the service panel, may have been warranted.

What you need now is a thorough evaluation of your electrical system to determine what repairs and upgrades are truly needed. Find a reputable electrician to give you an overall status report of the system and of specific conditions that led to your current predicament. If you need a good referral for an electrician, call the local electricians union and ask for someone who specializes in troubleshooting defective electrical systems.

Q: I'm buying a home that is currently under construction. With the downturn in the local real estate market, I'm afraid that the purchase price may no longer be the value of the property. Can I request an independent appraisal prior to closing or do you think the builder might object?

A: The downturn in the market may have the builder worried too, and your request for an independent appraisal will probably heighten his concern. That should not prevent you, as a prudent buyer, from protecting your interests. A home purchase is a major financial commitment, and you have every right to obtain your own appraisal. The builder might complain about it, just as some builders might balk at the prospect of a home inspection, but this should not prevent you from being cautious in uncertain times. It makes good sense to verify the market value of the home you are buying. If the appraisal is at variance with the contract price for the home, you should have the option to renegotiate or even to cancel the sale. However, to clarify your legal rights, you should consult a real estate attorney.

Distributed by Action Coast Publishing. Questions to Barry Stone can be emailed to barry@housedetective.com.

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