Fireplaces, stoves and chimneys: Prudence and inspection

When selling an immovable, people tend to neglect a very important step: inspection of the stove or fireplace and the chimney. It is important to remember that these heating devices must comply with the requirements of both the insurer and the municipality.

Even if an owner-seller has a home insurance policy, the current or any subsequent insurer may refuse to issue a new policy on the grounds that the insurability requirements have been tightened over time. For example, a significant number of controlled combustion stoves no longer meet insurers' prevailing standards. As policies are usually renewed automatically, the owners have every reason to believe in the insurability of their property because they are insured and have not received a notice of non-compliance.

Fire prevention services in the municipality where the building is located may have their own inspectors responsible for detecting hazardous devices. Inspections are performed when an airtight stove is installed, for example, but regulations may differ from one municipality to another. Generally, inspectors are empowered to force owners to modify unapproved heating devices, e.g. those not bearing the ULC seal, or when the manufacturer's installation instructions have not been followed.

If an owner neglects to request a municipal inspection of his stove and chimney during installation, he could receive an unannounced visit from a municipal inspector, who might very well call for certain corrective measures. Where there is a potential fire hazard, the municipal inspector could also force the homeowner to have an expert conduct a more detailed inspection - at the owner's expense, of course. If this inspection reveals non-compliant components, the homeowner should make them compliant, which could potentially involve a considerable amount of money.

Never assume that a stove and chimney are eternally compliant. An installation deemed safe in the past may be considered hazardous today. Homeowners are not systematically informed of changes in insurance and municipal requirements. Having received no notice of non-compliance, a seller will naturally say nothing on the subject, which could quickly become a potential source of a legal dispute. If a notice of non-compliance is issued after the building is sold, the new owner could be held responsible for making repairs that are sometimes major. His natural reaction could be to blame the former owner and his broker for failing to inform him of such non-compliance.

How to avoid this problem? Through prevention!

If you are representing the seller:

Clause D2.12 of the mandatory form “Declarations by the seller of the immovable” form states:

An owner who has not been informed by his insurer or municipality of the non-compliance of the stove or chimney in his building could falsely believe that he is justified in saying nothing about the matter. But the absence of a notice of non-compliance does not prove compliance.

If you are the agency or the seller’s broker, ask your client if he or she has documents describing the characteristics of the stove and chimney, such as reports of municipal or insurance inspections or an instruction manual. Place these documents or a copy of them in your client's file. Some municipalities will tell you the date of the latest inspection. By following the established procedure, homeowners can usually obtain a copy of inspection reports.

You must refer to the following questions on the Declarations by the seller of the immovable form:

You must inform the owners of the situation. Explain to them that the stove, fireplace or chimney in their building does not comply with the insurer's or the municipality's new requirements. Point out that a future buyer could make a promise to purchase conditional upon the inspection of the building, and that the purpose of this inspection should be to uncover all aspects that do not comply with insurance and municipal requirements. A negative inspection report might entitle the prospective buyer to render a purchase offer null and void.

If you are representing the buyer:

When you represent a prospective buyer, you must ask your seller’s broker colleague to tell you everything he or she knows about the heating installations in the building. But be careful! A hasty conclusion that the installations are compliant could be risky, as the standards are constantly changing.

Hiring a building inspector or professional with proven skills in stoves, fireplaces and chimneys could largely obviate the possibility of future litigation. The cost of an inspection will be quickly forgotten if the buyer can avoid problems.

A good qualified inspector should know municipal and insurance requirements so that where applicable, he can give you a written statement that the stove and chimney comply with municipal requirements and that the installations are insurable by the buyer's insurer. As insurability criteria vary from one insurance company to another, the buyer must give the inspector the name of the future insurer. Clause 8 of the Promise to purchase covering a chiefly residential immovable containing less than 5 dwellings provides an inspection mechanism and would be the obvious procedure to use.

If the inspection reveals something about the building which might significantly reduce its value or increase expenditures, the buyer could exercise his right to render the promise to purchase null and void. The buyer must then inform the seller in writing and send him a copy of the inspection report within four (4) days of the end of the period given the buyer to conduct the inspection. Then, if the buyer decides to proceed with the purchase, he does so in full knowledge of the facts.

Before signing the deed of sale, buyers must contact their insurer to insure the building. To do this, they must know the characteristics of the stove and chimney in the building they are about to purchase, as the insurer will issue a policy on the strength of his declarations. Problems can occur if a buyer has made statements to the insurer which do not reflect the facts. Since the insurer usually conducts as inspection after the sale is finalized, the new owner may be required to remedy the situation if non-compliance is found.

Conclusion

Regarding the hiring of an inspector, explain to your client the need to choose a qualified expert; the client's brother-in law is not always the best man for the job! Please note that as broker, if you refer a building inspector to your client, you have certain obligations in this regard⁽¹⁾. Advise the client to inform the inspector in writing that the heating facilities and chimney are to be inspected and that an opinion is needed regarding compliance with insurance and municipal requirements.

When it comes to stoves, fireplaces and chimneys, clients must proceed with caution and call upon competent people. Whether you represent the seller or the buyer, never state that an installation complies with the municipal or insurance requirements unless you are absolutely sure. This advice also applies in every other area such as septic tanks, heat pumps, piping and so on. Part of being competent is knowing when to bring in an expert. Your client will thank you for it!

For any questions, feel free to contact Info OACIQ.