A Seller just discovered following the Buyer’s Home Inspection that the property is filled with knob and tube wiring. This was supposed to have been removed by the original Owner 8 years ago.
What can be done?
There’s a limitation against the original Sellers that expired about 6 years ago. That’s difficult to get around. It’s a challenge, but it’s still possible.
The trigger for the start of the “limitation” is the discovery of te problem in the first place.
The test is easier should there be either a claim against the Agent or the Lawyer. It would appear that one or the other, or both overlooked something on the closing.
While this seems like such a glaring and obvious error, a solution on closing could have been a financial credit. Eight years goes by, and the present Owner has just forgotten that part. This sort of thing occurs more frequently than it should.
Once the system is fixed, it’s time to review the old file carefully. Any action against the Lawyer and the Agent should include the Seller for the purposes of discovery.
Brian Madigan LL.B., Broker
I carry an electric probe in my rubbermaid car tub. If the house is from that era I take it in with me. I look for wires that go up inside a wall, go up to the next floor; if there is no outlet near where I expect to find it, then I go to the second floor. If my probe does not find a connection there, then that plug can be a problem so the home inspector is alerted. If it is my listing, I write an information sheet for customers, with a copy of the ESA information on the back page.
A few years ago, I had a place listed from the estate of very elderly people. I checked the wiring carefully before putting it on MLS. Every agent viewing it was warned in advance that it had some issues. That it was more suitable for renovators that first time buyers.
I’m a single agent brokerage and field my own phone calls.
If I worked in a larger company, I would create a drop down information schedule as well.
I have a Toronto insurance broker that will insure K&T.
Excellent, very good to know