I recently bought a house and discovered that both of its electrical panels are from a manufacturer known for being a serious fire hazard. My home inspector completely overlooked this—he claimed everything looked good and even included pictures in his report. This issue is well recognized in the industry, and now I'm faced with a $7,000 bill to replace the panels.
To make matters worse, it seems the seller was aware of the problem. They had solar panels installed, but instead of replacing the original panel, they just added a sub-panel to bypass inspection. They didn't disclose any of this during the sale. Now, the inspector has offered to help with repairs if I sign a waiver absolving them of any responsibility, which feels sketchy to me.
Has anyone else experienced something similar? What are my options regarding the seller and the inspector?
3 Answers
You should definitely look up the disclosure requirements for your state. In my area, sellers aren't obligated to disclose this type of information. So, you might not have any legal options against the seller here.
It sounds like you're dealing with Federal Pacific panels, right? I ran one for over 15 years and never had an issue. The main risk is if the breakers don't trip correctly, which can lead to a fire. But as long as everything is functioning well, you might not need to panic just yet. But definitely check with your insurance, as they usually cover these kinds of issues unless you signed a waiver from them before, which could be a red flag.
If your panels are StabLok, you might be okay for the moment, as they're not immediately dangerous. There have been concerns about certain breakers not tripping properly, but not everyone is replacing them on an urgent basis anymore. As for that inspector’s offer—consider taking it! If you can negotiate a fair split, that could save you some money on the replacement. It's also worth noting that installing a sub-panel for solar is common, so it doesn't necessarily mean the seller was trying to hide something.
Yeah, the solar sub-panel thing is pretty standard, and not everyone knows that. It might not be that they were trying to hide the panels from you after all.