Dear Barry: When we bought our house, the home inspector found no problems with the water heater. On moving day, the gas man had a different story. Instead of lighting the pilot, he capped off the gas and said it is illegal to have a gas water heater in a bathroom. He advised moving it to another location or replacing it with an electric water heater. The seller says he installed the water heater himself and that the previous water heater was in the same location. Is the seller required to move or replace the water heater since he is the one who installed it, or is this our problem?  Lauren

Dear Lauren: Your home inspector should have reported this problem. It is common knowledge among experienced inspectors that gas-fueled water heaters are prohibited in bathrooms. You should notify your inspector of the situation and request a reinspection. The seller, on the other hand, may be liable for installing a water heater without a permit, but most homeowners are unaware that permits are required for water heater replacement.

The purpose of a permit for water heater installations is to insure compliance with pertinent plumbing and safety codes, including the prohibition against placement in a bathroom. If the seller did not obtain a permit, he is in no position to defend the quality of the installation. This does not mean that he is contractually obligated, as a seller, to correct the problem, but you have a reasonable basis for demanding that he do so.

Water heaters are prohibited in bathrooms for two reasons: 1) Faulty exhaust venting can contaminate the air, causing asphyxiation; 2) Inadequate combustion air supply can reduce the oxygen level in the room. Either of these would be very dangerous for someone relaxing in a tub of hot water.

The code requirement is clear. Its intent is to save lives. The gas man was right. The water heater should be moved or replaced with an electric one.

Dear Barry: :  We just closed escrow on a home, and the day we moved in we found a flooded basement because the water heater had failed. But four weeks ago, our home inspector said the water heater would be good for many more years. Our plumber disagreed. He said the fixture was 10 years old, was rusted at the bottom, and was well past its normal lifespan. We paid our inspector $450 to let us know what was wrong with the house and then had to spend twice as much for repairs on moving day. Is our home inspector liable for this mistake?  Faith

Dear Faith: Experienced home inspectors know better than to predict the remaining life of an old water heater. Those who break that rule expose themselves to needless liability.

Home inspectors routinely determine the age of a water heater by reading the serial number on the label. If your inspector had done this, he might not have predicted years of continued use for the fixture. In fact, most home inspectors typically report that an older unit may soon fail.

Aside from the age of the fixture, your home inspector should have noticed the rust at the bottom of the tank, a clear indication of age and of past leakage. It appears, therefore, that he did not conduct a thorough inspection of the fixture.

Before you replaced the water heater, you should have notified your home inspector of the problem and given him the opportunity to review the damage. Some home inspection contracts require that the inspector see the defects in question, otherwise the inspector is absolved of liability. On the other hand, a written statement from the plumber who replaced the water heater will provide evidence in your favor. But first you must contact the inspector and let him know that this problem has occurred.

Dear Barry: We purchased a home that was repossessed by the bank, and we hired a home inspector to check it out. After moving in, the gas company red-tagged the water heater because of improper exhaust venting. The gasman said this should have been disclosed by our home inspector, and according to our plumber, a new vent pipe will cost $629. Is the home inspector liable for this costly repair? Lillian

Dear Lillian: Without knowing the specifics of the vent violation, I cannot comment on whether the home inspector should have disclosed it. The most surprising aspect of your situation, however, is the incredible cost for a new vent pipe. For $629, you could have a new water heater installed.

As for the home inspector’s liability: If you have not already replaced the vent pipe, you should notify your inspector about the problem and request that it be reinspected. That call should have been made as soon as the gas company pointed out the problem. Many home inspection contracts specify that the inspector must be given the opportunity to view the defect before it is repaired. Otherwise, the home inspector may be relieved of liability.

If the vent pipe has already been replaced, you have two separate issues: 1) You may have been grossly overcharged for the repairs; and 2) The home inspector may no longer be liable. If the repairs have not yet been done, call the home inspector and get two more bids for the cost of repairs. The House Detective

Dear Barry: When we purchased our house, our home inspector said the water heater was an old model but was in useable condition. After moving in, we called the gas company to light the burner pilot, and the gasman red-tagged the unit, refusing to light it. According to the gas company, the water heater is unsafe and should not be used. Do we have recourse against the home inspector? Frank

Dear Frank: The defining question in this situation is “What exactly is wrong with the water heater?” Without that information, it is not possible to fairly judge between the home inspector and the gasman.

A home inspector should disclose conditions that are visible at the time of the inspection, and with water heaters, the possibilities are numerous. For example, there could be rust damage in the burner compartment, a defective flue pipe, a detached flue baffle, a faulty gas connection, improper gas piping, an unstable platform, lack of a temperature pressure relief valve, flue contact with combustible materials, soot in the burner compartment or in the flue, a damaged or missing draft diverter, back-drafting of combustion exhaust, and so on. Some of these conditions would necessitate replacement of the water heater, while others would be repairable.

One possibility is that the water heater is so old (mid-1960s or earlier) that it does not have an orifice for installing a relief valve. Most water heaters of that age have long since found passage to the nearest landfill, but a few of these antiques are still in service and are in need of replacement. A defect of that nature would call for replacement of the fixture.

In most cases, the gas company specifies the nature of defects when they issue a “red tag” on any gas-burning fixture. If you check the tag, you’ll probably discover what they found. In any event, the home inspector should be contacted regarding reinspection and reconsideration of the water heater. If he missed a visible defect, he may be liable for repairs.

Dear Barry: When we bought our home, our home inspector said the water heater was OK. But when we moved in, the hot water was orange at all of the faucets. So we called a service company. They said the inside of the tank was completely rusted, and we paid them $1000.00 to replace the fixture. When we called our home inspector about this, he said that he had operated all of the faucets, and the water had been clear at that time. He also stated that he is not responsible if something is now wrong. Is he really not liable? Tammi

Dear Tammi: Many of the questions I receive from readers are pointed complaints against home inspectors. Some of these involve professional negligence by inspectors, while others reflect basic misunderstandings about the scope of a home inspection or the nature of various home defects. To fairly address your water heater situation, there are some issues that need to be clarified regarding rusted plumbing and what may or may not have been apparent on the day of the inspection.

The rust-colored water at your faucets can come from a rusted water heater of from from old rusted water pipes. In either case, discolored water may not always be apparent. For example, if the house was occupied on the day of the home inspection, then the occupants were using water on a daily basis. With regular use, the water would be clear because there would be no build-up of loose rust particles. But several days or weeks of vacancy would allow loosened rust debris to settle in the water heater, the pipes, or both. If that were the case, when you moved in and turned on the various faucets, the settled rust would have flowed with the water, and the rusty color would then have been apparent. This may or may not have been what occurred in your home, but it is one possibility to be considered in addressing your concerns.

Another variable is the seeming certainty of the “service company” (or was that a plumber?) regarding the interior condition of the water heater tank. The inside of a water heater is not exposed and cannot be inspected. A further concern as to the credibility of the service company is the cost of replacing the water heater. A typical water heater replacement costs approximately $600. The fixture itself should have cost about $250. So what was the hourly rate for labor?

As for the home inspector, it is surprising that he found no problems with the water heater, since most water heaters are not installed in full compliance with plumbing code requirements. Also, if the water heater was badly rusted, then it was old. A thorough inspection of a water heater includes an age estimate of the fixture. If the unit was old, this should have been noted in the inspection report as an indication that the water heater may have had limited remaining life.

The home inspector’s statement that he is “not responsible if something is now wrong,” needs some clarification. As often stated in this column, home inspectors are liable for conditions that are visible and accessible at the time of the inspection. If something was visible, accessible, and “wrong,” then the inspector would be liable, unless the defect involved a component that was not within the scope of a home inspection.