Looking to buy a house with k**b and tube

Question

Hello,

I am currently at the stage where we are trying to get a mortgage and we are having a huge difficulty getting a home insurer to insure the home because of this the old k**b and tube wirring. Our real estate agent didn't warn us about this when we signed the contract and the inspector who inspected the house didn't either. I talked to a electrician and he said it would cost $4000 dollars to remove and put modern circuitry in.

My question is is it now my responsibilty to get this replaced? Or the sellers? If they don't agree to at least half I would like to walk away....can I?

My real estate agent is going around like a mad man trying to find a insurance company that will insure this....and now I am not feeling comfortable about living in a home with that wiring (its a duplex and I will also have a tenant on the other side)

Any suggestions? Help?

Thanks,

---Dave

Answer 1

Your real estate agent is wasting his time with that effort.  k**b and tube wiring is an antiquated system and is a fire waiting to start.  Such systems are very old, and the insulation on the wires is probably fragile by now, from age.  Furthermore, those old systems were only designed to handle electric lights.  None of the higher power draw items we now have were available back in those days.

It's not your real estate agent's job to warn you about such things.  He may not have even known that such a system was in place.  I find it strange that the inspector did not make mention of this fact.  If you look at the written copy of your inspection report, I would guess you will find mention of the k**b and tube within. Bear in mind that it's not the inspector's job either to warn you of insurance issues.  He is just there to provide you an inspection and its results.

If you have fulfilled your contingencies on this offer, you are not in a good position to bargain.  Walking away will certainly cost you any earnest money, as well as the potential of specific performance lawsuit, although uncommon.

Answer 2

You can walk, but you will be forfeiting your earnest money and could face a law suit for further damage (uncommon, but possible).

The house passed inspection, the seller has no obligations to even negotiation something like this.

Answer 3

Where I live the "real estate board" has one and "only one " insurance company that will insure "k**b and tube".

Your realtor may not have known of "k**b and tube".   A big "flag" for "k**b and tube" is the age of the home.  Most "realtors" are very precise when asking about electrical updates on homes ap. over 50 years old on "electrical updates" and ask for the precise time and date of "electrical permits".  This information is put on a "Disclosure statement".

The building inspector would see as soon as he opened the "electrical box" the evidence of "k**b and tube" because the wire is usually coated differently (fabric) as is "aluminum wiring" differently coated.  This should be put on the "report".

With all this , your bank has okeyed the financing , and you are now waiting for insurance?

The only thing stopping you is the homeinsurance. You can not "remove your conditions" to go to a firm sale without "insurance".

Now if you find an "insurance company" you can still negotiate a price using this evidence of an additional $4000 unsuspected/undisclosed expense.

You can not remove any of your conditions to go to a firm sale without "insurance".

Can you get your deposit???  

If your realtor can not remove the "conditions" , the deal collapses. In the  "collapased deal form" the deposit refund is mentioned.

You can also talk to your "agents" manager.  

Loop holes such as example: heritage homes to keep character are issues as well with insurance and may simply have an insurance of not to occupy until corrected and a negotiating point  to get a repair from the seller.  (just an example).

Answer 4

I work in an area where most of the houses are at least 80 years old.  There is one company that will insure k**b and tube, but there are many which will provide coverage for a limited time while the wiring is updated.  I know Alstate used to do that.