Faulty Furnace Was Not Disclosed

Feb 24 2008

The House Detective by Barry Stone, Certified Home Inspector

Dear Barry: When we bought our home, the sellers said that everything was functional, which included the central heating and air conditioning system. On the day of our home inspection, the summer temperature was over 90 degrees outside, so the inspector tested the air conditioning but not the heat. Yet his inspection report said that the entire HVAC system was functional. Well, it turned out when winter came that the furnace would not work. The heating contractor we called found several problems, including a cracked heat exchanger. So now the furnace has to be replaced. Who is responsible to pay for this? George

Dear George: The sellers could be liable if the furnace was inoperative or had obvious defects while they owned the property. But that may not be provable. The sellers may in fact have been unaware of any furnace problems, even though it was defective at the time. The home inspector, however, is clearly liable for approving the condition of a furnace without testing it and without recommending further evaluation.

Operating and inspecting a furnace is standard procedure for home inspectors. If an inspector does not operate a heating system, because of hot weather or for any other reason, the report should clearly state that the system was not tested. The condition of the furnace should then be regarded as an unresolved issue, and the inspector should recommend further evaluation prior to close of escrow. A home inspector who discloses a system as functional when it has not even been operated is grossly negligent and should be held to account for that professional breach.

You should notify the sellers and the home inspector of this situation and insist that they take some responsibility for replacing your furnace.

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Questions regarding home inspection please email Barry Stone at questions@housedetective.com

7 Comments

  1. Barry,

    You have no idea what you are talking about. You are the biggest joke to hit the home inspections industry. If the inspector clearly states that he/she could not test the heating system due to the temp. than there is no issue here. You are just provoking another sue happy person who thinks someone else should be responsible for every misfortune that comes their way.

  2. Mike,
    If a home inspector is unable to test a furnace but reports that it is functional, are you saying that this is an acceptable practice and that such reporting does not constitute professional negligence?

  3. Dear Barry,

    The heat exchanger is listed as an exclusion in the Standards of Practice for Professional Organizations such as ASHI and NACHI as well as many licensed States. In my experience I have not been able to find a set of home inspector regulations that does include the heat exchanger.

    I recommend the consumer check the list of exclusions prior to hiring a home inspector.

    I disagree with your article.

    Respectfully,
    Jim

    Jim Mushinsky on
  4. Mike,
    I’m happy to conduct a respectful discussion with you. Could we please leave out the ad hominem invectives?

    I asked you, “If a home inspector is unable to test a furnace but reports that it is functional, are you saying that this is an acceptable practice…?”

    You didn’t answer that question. So let me rephrase it: Is it ok to report that a furnace is function if it was not tested?

    Yes or no?

    Barry Stone

  5. Dear Jim,
    I know that heat exchangers are outside the scope of a home inspection, as defined by accepted standards of practice for the industry. And believe me, I’m not trying to upset that applecart. The reason for the disclaimer is that heat exchangers in most furnaces are largely concealed from view. In practice, however, home inspectors are sometimes able to observe heat exchanger damage in the immediate area of the burners. Also, rust particles in the burner chamber or irregular flame patterns can alert an inspector to possible heat exchanger damage.

    In my own reports, I always disclaim heat exchangers. At the same time, I carefully check for heat exchanger damage to the extent that this can be done without dismantling the furnace. On more than a few occasions, I’ve observed cracks and holes that were overlooked by the gas company and by HVAC contractors.

    This is just one of many examples of conditions that are outside the scope of a home inspection, yet are routinely reported by home inspectors. For example: We firmly disclaim code inspections, yet many of our disclosures are based upon code compliance. We just don’t use the “C” word in our reports.

    There are many such gray areas in our business, as you well know. I’ve always enjoyed the heated debates that arise among home inspectors as these issues are discussed at conventions.

    Best regards,
    Barry

  6. Dear Barry,

    In response to George’s question; “Who is responsible to pay for this?” I feel that George is responsible for payment.

    I can’t see how an item outside the scope of a home inspection becomes the financial responsibility of the home inspector.

    It sounds like you have some excellent techniques for inspecting furnaces. Definitely above and beyond the minimum requirements for my State. Consumers need to be aware that the advanced techniques you use are Optional Services and they should not expect these services with a home inspection unless they are specifically contracted for.

    Best Regards,
    Jim

    Jim Mushinsky on
  7. Hi Jim,
    Actually, I don’t use any advance techniques. I just shine my flashlight into the burner chambers to see if any evidence of damage or deterioration is apparent. And I watch for changes in flame patterns when the blower turns on. All I’m doing is a normal visual inspection of accessible portions of the furnace. And why do I do this? Because early in my career I had call-backs after the close of escrow, when the gas company or an HVAC contract identified a cracked heat exchanger, merely by looking with a flashlight. At that point, the buyers had a reasonable question for me: “Barry, if the gas man was able to see the crack without dismantling the furnace, why didn’t you see it?” The truthful answer to that question was that I hadn’t looked carefully enough. Now I look very carefully at every furnace, and when the cracks are apparent, I call them out. Regardless of the standards, that’s why people hire me.

    Best regards,
    Barry

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Barry Stone

Barry StoneKnown today as "America's House Detective," Barry advises readers from coast to coast about home inspection and real estate disclosure, providing honest clarity, fresh wit, consumer protection, and even-handed fairness in his responses to real estate questions. Read more.

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