Federal Pacific Panel Prevents House Closing

[SC Maintenance]

It will not pass for an FHA mortguage, and they agreed to do 20% down which completely straps them from any cash.

So this is an owner financed deal and no real estate professionals were involved? Who wrote the purchase agreement and what does it say? If the buyer put down cash without a proper agreement he might be SOL, but check state law - it might be written in.

The current insurance company has the house fully insured, and yet that said company will not write any policy for another buyer. That does not make any sense.

It may make a lot of sense. They may have been forced to continue the old policy via state law. The previous owner might have had a better Lexus / Nexus insurance score than your friend. The insurance company may not have interest in writing any new policies of this type, there under no obligation.

The sellers estate people should grant a temporary waiver/hold harmless agreement to allow an electrician to replace the panel.

This is the obvious solution to move things along. Everyone gets what they need. If the buyer does not have the cash the seller will need to lower the down payment. If they don't the lawyers get to make money.

 

[GaryMX5]

Can't you pay the current owners/estate to do the work and guarantee them minimal brain damage? Have an electrician (of your choice) lined up that has given you a firm (written) quote. Give the estate the quote and corresponding payment. They ok the work and pay the electrician with your money. Seems to be a no brainer for everyone involved and avoids the insurance nonsense.

 

[nealberke]

More about Zinsco and FPE breakers here: https://www.electrica-inc.com/blog/stab-lok-panels-insurance

 

[DCDG]

those panels were no good from day one you could practically weld with them and the breakers wouldn't trip.

 

[Number_35]

Are Federal Pioneer (FPE) and Federal Pacific breakers related?

FPE breakers have the reputation of functioning properly when there's a dead short, but of not tripping during a gradual overcurrent event.

Edit: I've just read the article linked by @nealberke in post #23. What is a good brand to replace my old FPE panel with? Square D?

Thanks!

 

[nealberke]

Are Federal Pioneer (FPE) and Federal Pacific breakers related?

FPE breakers have the reputation of functioning properly when there's a dead short, but of not tripping during a gradual overcurrent event.

Edit: I've just read the article linked by @nealberke in post #23. What is a good brand to replace my old FPE panel with? Square D?

Thanks!

Are Federal Pacific and Federal Pioneer the Same?​

Per: https://thecraftsmanblog.com/the-dangers-of-federal-pacific-panels/

Federal Pioneer is the Canadian brand name of the same Federal Pacific panels sold in the US. These panels are subject to the same overloading failures as their Federal Pacific cousins since they are the same design simply with a different moniker.


There is a currently a recall in Canada for several Federal Pioneer circuit breakers you may want to explore if you happen to own one of these.

 

[nealberke]

Are Federal Pioneer (FPE) and Federal Pacific breakers related?

FPE breakers have the reputation of functioning properly when there's a dead short, but of not tripping during a gradual overcurrent event.

Edit: I've just read the article linked by @nealberke in post #23. What is a good brand to replace my old FPE panel with? Square D?

Thanks!

I've not replaced a panel since 2003. Doing it again, I'd stick with Square D / Schneider Electric or Eaton / Cutler Hammer or Siemens. I like Eaton's quality in wiring devices. Eaton is available from Lowe's HIW. Be prepared to spend. Current code requires arc suppresson in new work. Also a good time to clean up other wiring problems, run new circuits, maybe that electric car charger if you are buying one.

 

[JayhawkRoy]

Seller should let the guy access the house and get the work done. Win-win and gets the house sold, subject to any local inspections of course. If the deal falls through, seller has the correct and new service.

It would cost more, but an addendum agreement allows craftsmen to get the work done and get paid a settlement at closing. Most reputable agents know people who do that. We did something like that on termite treatment and radon remediation, two things I could not do myself.

 

[nealberke]

RE: Insurance. We had a problem getting an insurance carrier that would cover a vacant house until it sold. This was back in 2021. You might give these folks a try and explain the problems you are having. https://www.insureunlimited.com/

 

[Hall]

So it is ok for them to insure a fire hazard now, but not later?

Insurance didn't know it had a Federal Pacific panel until now. This isn't that unusual.

 

[The_Jeff]

Does your friend have equity where they're living now? Maybe they can use a HELOC on their old house or bridge loan for the new place instead of a traditional mortgage.

Maybe talk to a loan broker; there are some banks that do "forced insurance" if you can't find your own. This typically happens after you close and default on previous insurance but the broker might know a shady bank that'll do it whenever.

Talk to a local insurance agent and spill your guts. They might know a carrier you've never heard of.