Get an electrician to inspect it and tell you what's necessary and what it would cost to fix then re-evaluate your options.

Home inspectors are clueless when it comes to electrical systems. #2 is an example. That's just gibberish as far as I can tell.

However, federal pacific panels are known hazards (google it) so some work will have to be done which means that other parts of the electrical system that are out of date may need to be brought up to modern day codes.

But I repeat ... get an actual electrician to inspect and give you a quote.

I agree with Greg. I have much distaste for nonsense found in inspection reports. At least this one did identify some issues which give you an inclination to do the right hting.

#1 is most likely a serious problem and absolutely must be corrected.

#2 as Greg says makes no sense whatsoever. Copper wire is allowed to be used everywhere. I assume he meant 2 120V breakers rather than 110A (which would be exteremly rare to find). There are circumnstances when feeding one cable with 2 single pole breakers is fine (even without the handle tie). There are times it is not OK.

#3 Again, this makes no sense whatsover.

#4. This makes no sense, If the subpanel feeds are connected to the supply side of the main breaker you've got issues. I know of no way to "tap off" the load side of a main beaker directly on a Square D panel.

#5. FPE panels are problematic, lack of independent grounds are problematic. White wires are supposed to be the commons.

#6. I find this incredibly hard to believe, even for an older house. It would be very bad.

You want to follow this inane inspection up with someone who knows what they are doing. An electrician, especially one familiar with working on older houses would be ideal. Call around.

Sounds like for #2 they are using a piece of copper wire as a handle tie to create a double pole breaker. Not a big deal to fix.

I've made my decision today that it needs replaced. Seller agrees to pay half whatever it cost. House in perfect condition other than this. Thanks for reassuring me. House was owned by the Chase Candy cherry mash family

This post was edited by carlyb on Fri, Jan 16, 15 at 20:24

So you will pay half. But why pay anything for something that has nothing wrong. And that may be the case with some of these "issues". Better verify every detail before any work is contracted.

busdriver..are you saying you don't think any of the issues has anything wrong. I'll get a couple bids from a licensed electrician and see what they say.

The fact that there are serious doubts about some of the "inspector's" findings casts doubt on the entire report. Obviously I have not seen the premises nor the report.

You guys are splitting the cost of what HAS to be fixed or what SHOULD be fixed.
Those could be two wildly different figures.

For instance, ungrounded circuits were the standard years ago and are grandfathered in and don't necessarily have to be changed. But modern usage usually needs a ground. So while it isn't required to update it, it's probably a good idea.

Or is your agreement just tentative until you get the quotes in and re-negotiation will happen at that point?

The house is ours now and we'll get an electrician locally that works on old houses. House is big and want to make sure electrical is up to par. Seller gave 500 toward electrical work and we accepted. What ever happens, happens. Sellers staying for 10 days while moving into their new home and we move in next week. Thanks

Did you ever get any bids from electricians?
$500 could just be a drop in the bucket but if you're happy with the overall deal and are okay with paying whatever it costs to fix whatever could be wrong with the electrical system, then that's great.
Let us know what you find out when an electrician takes a look.

IMO, its better to redo what needs to be done if half of it is getting paid for anyhow. If the wire runs throughout the house don't have a ground then you are looking at a complete rewire.

Edit: Did not see your post 2 up. $500 may not come close to covering half! One new main panel will be at least 2-3 grand and you are looking at possibly a complete rewire of the house. Wish we had more info to give better advice and estimates. Do the outlets have a wire with ground run to them? Go buy a simple outlet tester and plug them in throughout the house.

There are plenty of places where a ground is not used. Anytime you plug in something with a two-conductor plug, you can't use a ground. There is rarely a need to update every convenience outlet in a home so they have grounds.