Real estate inspection finding…

[455 Bravo Uniform]

In the process of purchasing a duplex. There were a number of significant inspection findings. We are still interested if the Seller resolves them to our satisfaction.

Chances are good that the Seller might just pull it off the market, because of the cost of resolution. One of the items is that both units exhaust the gas water heaters and gas furnaces to the chimney…and the chimney was cut short during a rehab and is truncated in the attic.

It’s a safety of life issue. I feel an ethical duty to the unknowing renters to let them know, in case the Seller doesn’t repair it now that they know. Winter is upon us here.

Any useful feedback here? I should know in the next few days if we are a go or not.

 

[TCABM]

Not your property and not your tenants; what legal protection do you have if you inform these tenants and they terminate their current lease with the current landlord?

 

[DaleB]

I wouldn’t tell the tenants.

I might think about whether or not the city building inspector knows about the defect.

 

[MauleSkinner]

I would guess that the person who did the inspection has seen this type of thing before, and might have some thoughts on how to proceed.

Also, read the inspection paperwork carefully…is there any verbiage to the effect that this information is solely to be used for…?

 

[455 Bravo Uniform]

Thanks. Interested in all thoughts. I don’t think there is one “right” answer, whatever right means, but my right is different than others’.

I just know that if it were my family, I’d want someone to help them out. And if I were the landlord, and I didn’t do the “right” thing, I had it coming.

It’s so unfortunate that our legal system has our thinking so F’d up that we worry more about getting in trouble administratively and financially that we even think to not help someone that has no idea they are about to get impacted health-wise.

Some color:
-Landlord updated one side.
-New tenant moved in to that side 2 months ago.
-Other side is currently vacant.
-We would update that side.
-Daughter would move in to that side.
-Landlord lives out of country, which country can tend to have lax health & safety regs and value of life.

Coming from an EHS career, I sometimes had to push the boundaries of my security-of-employment with management that did not always place the same value on life.

 

[TCABM]

….
Some color:
-Landlord updated one side.
…
-Landlord lives out of country….

That context tends to tell me any necessary permits and inspections may have never occurred, so you might as well perform due diligence there while you’re at it.

What you’re suggesting is the property’s certificate of occupancy is invalid; how do you as the potential purchaser validate it is inhabitable and remedy that? Have you seen the current lease? As the potential purchaser, what obligation do you have to honor the current tenant’s lease or is it even valid given the inspection?

 

[Chip Sylverne]

So the gas appliances are venting CO into an enclosed space within the dwelling?
Is there a CO detector in the occupied unit? If nothing else you might strongly suggest they get one. If I'm understanding you correctly, this is potentially fatal. I don't know that my conscience would allow me to keep silent. I also suspect the inspector may have a duty to inform.

 

[455 Bravo Uniform]

Yeah, good point on prior permits. Yes, I have the current lease. Good questions. The lease is valid if ownership swaps, but not sure on the inspection front.

Gas appliances (4 of em) vent into a shared attic space. Potentially fatal. If nothing else, debilitating. Yeah, conscience is the thing.

Again, appreciate the input. I’m planning on taking with my realtor and inspector today about our respective duty of care, both professional and layman.

If Buyer accepts and repairs (or comps the price) then no issue.

 

[455 Bravo Uniform]

Also, read the inspection paperwork carefully…is there any verbiage to the effect that this information is solely to be used for…?

Realized I didn’t comment. Nothing in the report or invoice limits my use of the report, only the inspector’s liability and limitations of the inspection.

Which is typical for real estate service providers- it’s about protecting them, not the client. Don’t get me started about the NAR, lol!

 

[Velocity26]

Just some advice from a 40+ year RE investor and property manager, when someone is willing to cut corners like that (with life threatening implications) what else have they done? I would suspect that the deeper you dig, the more you will find. Either the owner, or the maintenance guy that he has entrusted, has very lax and unethical standards. If I would not live there myself, I would not have you live there either.

 

[Ventucky Red]

In the process of purchasing a duplex. There were a number of significant inspection findings. We are still interested if the Seller resolves them to our satisfaction.


Any useful feedback here? I should know in the next few days if we are a go or not.

Here is my take on home pre-buy inspections... they are not done so you can give the seller a punch list of things that need to be fixed, they are list of things YOU the buyer need to consider prior to purchasing the property that may need to be corrected prior to your taking ownership or deferred maintenance. Something I have learned that works well as the seller provide a list of deficiencies right up front, and let's not waste each others time.

If the seller is not willing to negotiate, then walk, on the other hand be prepared for the seller to tell you "this is not the house for you.."

Me an two of my HS friends have been buying and flipping some homes in the Philadelphia suburbs.. With many of these homes we are starting to see in the listing and on the contract in boldface all caps underlined "sold as is - buyer is responsible." Most recently we had to get clearance from the township just to turn the water back on. Here is the before... I'll have the after some time in a June 2026 as we there is some structural stuff we need to tend to and were going to use this as an opportunity to open up the floor plan.

 

[Skip Miller]

I don’t care what the price is… That pic is a clear “walk away from this ‘deal’” signal for me!

-Skip

 

[fasteddie]

I might think about whether or not the city building inspector knows about the defect.

Or go have a chat with the local fire department, and see what they think. If the water heater and furnace truly are venting into the attic, that might be egregious enough of a violation that they'd come out to the building.

I know around here, if our CO2 detector goes off and you call 911, they roll all the trucks out to you.

 

[GoFly]

Run

 

[catmandu]

I don’t care what the price is… That pic is a clear “walk away from this ‘deal’” signal for me!

-Skip

Trash vs. treasure, but you have to know your limits. I found one place locally that from the listing seemed perfect, but after attending the open house, I determined it was a four dumpster project, and that's two too many for me.

 

[mrburkesir]

I am a retired HVAC contractor. This is a life threatening situation. All gas appliances do not run at 100% efficiency, older systems can be as low as 65%. That means unburned hydrocarbons (gas) is being vented into the attic space. Gas, whether natural or propane/butane, is heavier than air, which means it will settle into the living spaces. What that means is under the right conditions (a spark from any source, for instance) you have a bomb that is quite capable of leveling the building and possibly killing the occupants. I am surprised that any lender would release funds without a pre-buy inspection. By all means report this to your local building inspection authority or fire department. You can do this anonymously. Think about this, lives are in danger here, you have knowledge of why, I would not want it on my concscience should something occur.

 

[Ventucky Red]

I don’t care what the price is… That pic is a clear “walk away from this ‘deal’” signal for me!

-Skip

If you're refereeing to my post.... no, this is stuff we like because others say what you're saying. The comps in this hood are well above $550K and so far we're into it for just a little over $250K. We are thinking when all said and done we'll be into at the most for $400K with may top end upgrades.

Trash vs. treasure, but you have to know your limits. I found one place locally that from the listing seemed perfect, but after attending the open house, I determined it was a four dumpster project, and that's two too many for me.

We did one last year where the owner didn't know their limitations.

The issue I find today it having the right contractors on your speed dial - this is what can kill you along with not having the cash to do the deals.. not for the weak at heart if your working with OPM...

 

[DaleB]

We bought one a few years back that I knew would take some work. It wasn't anywhere near as bad as the one @Ventucky Red posted above, but I knew going in it would be a multi-dumpster project. What I did NOT count on was my wife torpedoing my initial plan. What I thought was a "clean it up and rent it" project turned into "Gut both bathrooms and the kitchen, take out a wall, put an egress window in the basement to make the fourth bedroom legal, and while we're at it get the wood floors refinished and oh, that lawn looks bad, let's call a landscaper".

But we've got great tenants in it now, they love the place, we're not sorry about any of the work we did, and it's going to earn well for as long as we hold onto it. When we sell it we'll get a good price. NO way it would have worked out if we were paying a loan on it, though.

 

[455 Bravo Uniform]

Great stuff, keep it coming.

We’ve got a little bit of rental, fix/flip, and farmland experience over the last 30 years.

Nothing is insurmountable with money. I need to be significantly in the black at exit. This is one of those, if the seller can fix or discount to my number.

 

[Lindberg]

In the process of purchasing a duplex. There were a number of significant inspection findings. We are still interested if the Seller resolves them to our satisfaction.

Chances are good that the Seller might just pull it off the market, because of the cost of resolution. One of the items is that both units exhaust the gas water heaters and gas furnaces to the chimney…and the chimney was cut short during a rehab and is truncated in the attic.

It’s a safety of life issue. I feel an ethical duty to the unknowing renters to let them know, in case the Seller doesn’t repair it now that they know. Winter is upon us here.

Any useful feedback here? I should know in the next few days if we are a go or not.

Inspectors are human and they don't always get everything right. So there's that. I'd confirm this is actually a problem before doing anything else. Then I'd discuss it with the seller. Does he agree it's a safety issue and he'll fix it? If not, a conversation with the local building official is in order.

 

[Lindberg]

I am a retired HVAC contractor. This is a life threatening situation. All gas appliances do not run at 100% efficiency, older systems can be as low as 65%. That means unburned hydrocarbons (gas) is being vented into the attic space. Gas, whether natural or propane/butane, is heavier than air, which means it will settle into the living spaces.

A properly operating gas appliance should not have significant gas in the exhaust.

 

[Baked Potato]

A properly operating gas appliance should not have significant gas in the exhaust.

Depends on what kind of gas you're referring to... CO is a gas.

 

[455 Bravo Uniform]

Perfectly combusted natural gas will generate H20 & CO2. That CO2 can cause an oxygen deficient atmosphere. The moisture, especially in a cold attic, will condense and cause mold. That’s another item in the attic. Among other things. Most would cut & run. I enjoy punishment and abuse…

 

[Skip Miller]

If you're refereeing to my post.... no, this is stuff we like because others say what you're saying. The comps in this hood are well above $550K and so far we're into it for just a little over $250K. We are thinking when all said and done we'll be into at the most for $400K with many top end upgrades.

I was, and I did not mean to crap on your business plan here. I was justified pointing out that I and my wife have no stomach for this kind of work. I do know that properly done, it can be quite profitable. And I will happily leave those profits to you. Peace and Happy Thanksgiving to you and your family!

-Skip

 

[Lindberg]

Depends on what kind of gas you're referring to... CO is a gas.

I'm referring to the same gas in both parts of the sentence.

 

[Ventucky Red]

I was, and I did not mean to crap on your business plan here. I was justified pointing out that I and my wife have no stomach for this kind of work. I do know that properly done, it can be quite profitable. And I will happily leave those profits to you. Peace and Happy Thanksgiving to you and your family!

-Skip

All good my friend...

 

[mrburkesir]

A properly operating gas appliance should not have significant gas in the exhaust.

On what area of expertise do you base your comment. I restate my (based on 40+ years in the trade) fact: Unless an appliance is operating at100% efficiency (burning every molecule of fuel), there will be gas in the exhaust, be it CO2 or natural gas. Granted, the possibility of an explosion is slim unless concentrations build up. Combustion only takes a 14/1 ratio, it can be higher, or lower, depending on the type of gas. I would be more than happy to provide you with the chemistry and engineering behind my statement.

 

[Rarefied]

Here is my take on home pre-buy inspections... they are not done so you can give the seller a punch list of things that need to be fixed, they are list of things YOU the buyer need to consider prior to purchasing the property that may need to be corrected prior to your taking ownership or deferred maintenance. Something I have learned that works well as the seller provide a list of deficiencies right up front, and let's not waste each others time.

If the seller is not willing to negotiate, then walk, on the other hand be prepared for the seller to tell you "this is not the house for you.."

Me an two of my HS friends have been buying and flipping some homes in the Philadelphia suburbs.. With many of these homes we are starting to see in the listing and on the contract in boldface all caps underlined "sold as is - buyer is responsible." Most recently we had to get clearance from the township just to turn the water back on. Here is the before... I'll have the after some time in a June 2026 as we there is some structural stuff we need to tend to and were going to use this as an opportunity to open up the floor plan.

View attachment 147496

any idea what the story is behind this? I would think either the property was uninsured and owner didn't have funds to fix, or property was insured and they took the money and threw it up for sale.

 

[Rarefied]

In the process of purchasing a duplex. There were a number of significant inspection findings. We are still interested if the Seller resolves them to our satisfaction.

Chances are good that the Seller might just pull it off the market, because of the cost of resolution. One of the items is that both units exhaust the gas water heaters and gas furnaces to the chimney…and the chimney was cut short during a rehab and is truncated in the attic.

It’s a safety of life issue. I feel an ethical duty to the unknowing renters to let them know, in case the Seller doesn’t repair it now that they know. Winter is upon us here.

Any useful feedback here? I should know in the next few days if we are a go or not.

As others have mentioned, it may very well result in the seller being a little delusional or looking for a sucker and you have to part ways. However, if their willing to negotiate, do it in the form of a price reduction or seller credit, I would not trust them to fix it. Also, make sure that inspection was very thorough on other areas given someone was wiling to cut corners on this. I have received 7 page inspection reports as well as 90 page inspection reports (last week) on simple duplexes and single family, lots of variety in inspectors.

If you walk away, I would definitely make sure someone is let known...

 

[455 Bravo Uniform]

When I talked to my realtor yesterday she said that the Seller’s agent has a professional duty to ensure the tenants are informed of any safety findings.