Home Inspection and aging water heater (real estate, insurance, lenders)

[BMW R1100]

We bought this house last summer, sight unseen, except for Zillow, and had it inspected by a guy recommended by the realtor. That inspector (?) missed a lot of stuff, faulty plumbing installations, wonky stairs in the front yard, and chief among them was an aging (20+ years) secondary water heater that was installed in the attic, which is pretty common around here. The aging heater leaked, not very much at first so we didn't detect it, but after I found water in the master closet, I began looking around. My first thought was that the shower pan leaked, since that bathroom had be remodded right before our purchase. I was working on the pan, running a bead of caulk around the bottom seam, planning to test it the next day. That night, we became aware of the sound of running water where there should not have been any, and discovered water coming into the shower from around the light fixture in the shower and pouring out of a heater vent in the hall. This mess has been an ongoing headache for weeks now. We have a new water heater, ($2400) which insurance would not cover, only the water damage, so the cheapest was to replace the failed unit, which we are on the hook for. Insurance is slow to respond, so now the floors in all the bedrooms had to be dried out, some walls had to be opened to dry, etc., etc. I am wondering if I have grounds for a lawsuit against the home inspector or the realtor?

[Roadking2003]

It's useless to sue a person with no money. The inspector likely has few if any assets. You need to find a company to sue.

[jbb303]

I would imagine that even an independent inspector would have to carry insurance.

[escanlan]

Originally Posted by jbb303

I would imagine that even an independent inspector would have to carry insurance.

State licensing laws require Inspectors licensed by The Texas Real Estate Commission (TREC) to carry Errors & Omissions insurance or a bond. Licensed Engineers who choose to perform inspections and not carry a TREC issued license are not required to carry E&O insurance.

[urbancuriosity]

I don't think going after the realtor would be feasible. Realtor referrals are mostly a matter of convenience. They know lenders, inspectors, and other people who can provide services to homebuyers. As the buyer, you can typically choose who you want to use and do your own research on that service provider.

In terms of the inspector, did the inspector look at the water heater at all? If so, what were the findings that day? It may be that there was no detectable problem that day.

OP, did you attend the inspection yourself? I am asking because you brought up the wonky stairs. Did the inspector walk on them during the inspection? Did you walk on them? I wouldn't necessarily expect a buyer attending the inspection to go into the attic but walking on the stairs is something a homebuyer can do. Did you notice the wonkiness yourself during the inspetion?

[BMW R1100]

I did not attend the inspection, I was still in California. It was all handled thru the realtor. The stairs issue was the front yard stairs, from the street level (no sidewalks in this area) to the front yard, they were railroad ties stacked up. The whole neighborhood uses these ties for leveling because we're in moderate hills here and the front stairs, which are still solid, but have a very short run. My wife won't use them and I don't like them, am thinking of adding some planks to get more run to them. I have several issues with this house, but wife loves it cause it ticks all the boxes for her, but not for me. I mean, who designed this? The neighborhood is full of houses with weird layouts and awkward arrangements for the driveways, front door, and back door. There is no back door from the kitchen area to where the trash barrels are located. To take out the trash, I have to go into the garage, open the garage door, come into the backyard thru a gate, put the trash in barrels, and reverse the procedure to get back in the house. The driveway comes up to the garage, but the front door is across the yard with no walkway and no convenient door into the house. All in all, it's a great house, but with some design flaws for sure.

[jbb303]

I think that weird design is pretty typical of older rural neighborhoods where the homes were built individually and not by developers.

I can't speak from experience, but I think you would have an uphill battle going after the inspector. Sounds like it took you awhile to notice the leak and it would likely be hard to prove that the inspector should have seen it. I think inspections are a total mixed bag. On my current house, the inspector mostly identified cosmetic issues that the seller compensated us for at closing. His big issue was with the roof. He insisted it needed replacement and that it was likely un-insurable. My roofer was on the fence about it, but thought it was worth looking at. The seller filed a claim that was denied because it wasn't bad enough to be replaced and my insurance didn't say a word about it.

[Seguinite]

$2400 seems like a whole lot of dollars for a water heater.

[escanlan]

Originally Posted by BMW R1100

I did not attend the inspection, I was still in California. It was all handled thru the realtor.



Just out of curiosity was everything done remotely from CA including the closing? Did you or a family member have an opportunity to view the house at any time before closing?



The stairs issue was the front yard stairs, from the street level (no sidewalks in this area) to the front yard, they were railroad ties stacked up. The whole neighborhood uses these ties for leveling because we're in moderate hills here and the front stairs, which are still solid, but have a very short run. My wife won't use them and I don't like them, am thinking of adding some planks to get more run to them.



Unfortunately if the Inspector only inspected to the minimum required in the State mandated Standards of Practice (SOP) then from your description the Inspector most likely did not even inspect these stairs. You can view the SOP here to see what the Inspector was required to inspect.


Texas SOP


The SOP starts at Subsection 535.227. The sections this might have fallen under are:

• 535.228(a) if it had an affect on the foundation (obviously not)
• 535.228(b) if it affected the grading or drainage for the area around the home. Note this is limited to the area around the home.
• 535.228(h) if the stairs were attached or abutting the home and used as a safety egress path which obviously they were not.
  

I have several issues with this house, but wife loves it cause it ticks all the boxes for her, but not for me. I mean, who designed this? The neighborhood is full of houses with weird layouts and awkward arrangements for the driveways, front door, and back door. There is no back door from the kitchen area to where the trash barrels are located. To take out the trash, I have to go into the garage, open the garage door, come into the backyard thru a gate, put the trash in barrels, and reverse the procedure to get back in the house.



Is there no rear exit door at all to the rear patio area?



The driveway comes up to the garage, but the front door is across the yard with no walkway and no convenient door into the house. All in all, it's a great house, but with some design flaws for sure.

Thoughts and questions in blue above.

[BMW R1100]

Originally Posted by escanlan

Thoughts and questions in blue above.

My grown son had come over to the house to have a look, noted a couple of issues, but did not go into the attic because the pulldown stairs was damaged and later replaced.


The inspector had noted the WH was past it's designed life span and had recommended replacement. We had not gotten to it yet it was awhile before we noticed the slow leak. I was looking for the cause, then when it failed, it was spectacular, water water everywhere.



I've noticed that there is always water in the gutter in front of the house, coming out of two small holes in the curb and flowing downhill. They must be French drains, but I would like to stop that water because I want to repair the concrete at the driveway/street interface, which is broken and crumbling.


Yes, there is a back door to the backyard, but it's from the living room to the patio, then around to the side of the house. I don't want to cart the trash through the living room to get it out.


$2400.00 was the installed in the attic price.


This development was built as a subdivision in 1984. The houses are all similar but not exactly alike.