Posted by Natalie Smith on December 19, 2004 at 08:50:47:
Jon,
I’m a real estate broker, not an attorney. I think that there are numerous things that can arise when purchasing a 100 year old house. I don’t think that the agent is required to mention all of the possibilities, but he should advise you to get a home inspection which it sounds like you did.
If the inspection was not satisfactory to you, you should be able to terminate the contact.
If it’s too late for that, you should also have a financing contingency in your contract. If you can’t get insurance, then you can’t get your loan, then you can’t close and you’re out of the contract.
Under contract on a house and just discovered that it has oudated 1910 wiring (knob and tube). After the inspection he downplayed the wiring and said all the houses in the area had it. He did say that some of his clients have had trouble in the last few years obtaining insurance with that wiring. Our insurance company is refusing to provide homweowners with active knob and tube in the house.
He is a very experienced agent in the area and knew the house probably had this wiring.
Was he obligated to tell us, or at least mention that it was a possibility, before we signed the contract. Had I known more about this wiring, I don not think we would have put an offer in.