Seller & Home Inspector Liability
We purchased our home 3 years ago. We hired a home inspector who found knob & tube wiring in our attic. The Seller signed an addendum to our purchase and sale contract for the home confirming that she would have a licensed electrician replace ALL knob & tube wiring. We had our inspector re-inspect the property and he indicated that "all visible and accessible knob & tube wiring" had been removed.
A month ago, we began a kitchen rennovation. Two days into the rennovation, our GC found active knob & tube wiring. We subsequently hired an electrician who found active knob & tube wiring throughout the entire house.
We feel that it is clear that the Seller is liable for our damages ($11,500 to replace the knob & tube wiring). While it seems the electrician she hired did not complete the work agreed upon and, in some cases, even seems to have concealed some of the knob & tube, we did not hire the electrician, the Seller did. Regardless, the Seller agreed to replace all knob & tube wiring and this clearly was not done. It seems to be a clear breach of contract.
On the other hand, our home inspector only found the knob & tube wiring in the attic. However it was behind EVERY light switch plate, light fixture and outlet. It seems they bear some liability as well. They also certified that the accessible and visible knob & tube had been replaced when, in fact, it had not. They are governed by ASHI standards which require them to inspect "a representative number of installed lighting fixtures, switches, and receptacles."
Does anyone have insight or experience with a situation like this - discovering home repairs after closing that were part of the purchase and sale contract?