Should I be worried that there is a major issue with the gas leak

Question

Hi Biggerpockets community! Happy Holidays!

I am a first time home buyer and am currently conducting inspections for the property but found that the property has a gas leak.

Question: Should I be worried that there is a major issue with the gas leak? What other checks would you conduct as a buyer?

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Right now (according to the seller), the gas lines to the range / stove  for 1st fl and 2nd fl are turned off because

1. 1st fl stove/range needs to be replaced2. 2nd fl - There's a leak on fuel line somewhere between isolator valve in basement and 2nd range

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Why do I think there might be a major issue

1. Reason 1 - Seller said tenants moved out in November b/c there was a gas leak. Instead of fixing this, it seems like they decided to sell the place in December. The reason seller gave my agent for selling the place is because they're moving.

2. Reason 2 - It seems like they had the property serviced, but didn’t fix the gas leak issue.

Background for reason 2—Gas company went to property on 12/21 and left 1 note saying ‘range leaking gas’ and another note saying ‘heater needs service’ (guessing 1 note for 1st FL and 1 note for 2nd FL). Seller told me to reschedule the 2nd part of the inspection from 12/22 to 12/23 so he could use 12/22 to service the place. On 12/23, it looks like the slab of tar outside of the home is fresh which means someone was working on something (this slab leads to the basement and is likely related to the gas lines). We had part 1 of the inspection on 12/12 and this slab of tar looked somewhat new during that time as well (which leads me to believe someone worked on something below this slab of tar twice within a short time frame).

As a seller, I wouldn’t even bother to fix the leak in the gas line, so why is there fresh tar? The only reason I can think of is if someone opened that area, saw that the issue was a bigger issue and then decided to let the buyer deal with it. The only other reason I can think of why there’s fresh tar is if they needed to go down that spot to fix the heater, but that doesn’t make sense as to why you would need to go underground to fix the heater.

Any advice on what you would do?

Karl B. · Answer

I would make certain the seller PROPERLY fixes the leak PRIOR to closing.

After the repair - but prior to closing -  you should pay your own tradesman to make certain the leak has been repaired properly.

You could also ask for a set amount of funds to be placed into escrow (for a set amount of weeks after closing) to ensure the repair(s) have been made properly.

Theresa Harris · Answer

If there is a gas leak, I hope the gas has been shut off.  I would not close until the leak has been repaired AND you've had an independent person verify that the leak was properly fixed.

Frank Greg · Answer

Are you trying to make the news with an exploded house?

Bruce Woodruff · Answer

Is this family friend a licensed Contractor? Make sure he is and then check out his credentials.....

Joehn B. · Answer

How old is the home and are any of the gas pipes in the walls or is all exposed in the basement?

Are there any structural issues, foundation shifts that might explain the gas leak?

Get a contractor or two to come look at it or give you a rough estimate range on repairs, and use that to counter on price?

As Bruce said, gas lines are not that hard to repair, not more different that plumbing but if the issue is buried behind drywall the cost goes up some.

I'd rather negotiate the price down and do the repair my self, that way I know corners were not cut.  On the other hand, if the house is very old, it would raise serious flags, and it could need the entire gas line replaced if it's old rusty pipes and maybe that's why they don't want anything to do with it anymore.

For reference, I bought a 1965 3/1 rancher and decided to add a tankless gas heater.  I re-piped the entire home (myself, with permits) from the meter in, using flexible 1" gas line and spent less than 700 in materials.  A plumber wanted somewhere between 4k and 5k for the job.

Now, it could be something as simple as a leaky gas pet cock by the stove, the older ones dry out and develop leaks, a super cheap fix and maybe the guy that said it's the stove is in the wrong.  easily missed by handy men..

The gas company is responsible for any leaks from the meter to their pipes and that might be that asphalt patch you have.

Bruce Woodruff · Answer

This should be easy to fix. They make flexible gas pipe. Just have the work verified as they^ said.

No reason to back out on a deal....

Ada Li · Answer

Hi all - thank you for your replies and your advice! I asked for the max Seller's Assist amount (the inspection report came back with estimates well over the Seller's Assist amount). I knew this going in since this is a property that does need some TLC, but I didn't anticipate the gas lines having an issue. In addition, I asked for the Seller to fix the gas leak based on the advice above. I'll have a certified plumber verify that the gas leak was fixed properly afterward. If the Seller doesn't agree to fix the gas leak, I will try to negotiate down the price and will find a trusted contractor to complete the repair.

@Theresa Harris - Yeah the gas has been shut off

Based on what @Bruce Woodruff & @Joehn B. is saying, seems like gas lines may not be as big of an issue as I thought it could be. I was also quoted at $4,000 max from a family friend (this might be lower than what others would charge) to replace all gas lines which isn't that much in the grand scheme of things. The property was built in 1923 and has had some upgrades to it in 2015, but not sure if gas lines were upgraded. The 1st fl stove needs to be replaced anyway (it is SUPER old) so not too worried about it.

Thank you all for your advice! This has been super helpful as a first time home buyer!

Should I be worried that there is a major issue with the gas leak

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