Furnace Flue

QUESTION:

A house we're interested in purchasing has a 15-year-old natural gas furnace and gas water heater in the basement, and is vented through the roof with what appears to be 6" or so round metal pipe with a metal venting cap on top. I'm guessing this is some form of double-walled gas chimney?
The problem is that, looking in the basement near the furnace, apparantly the 1st floor frame walls weren't thick enough for a 6" diam pipe, so whoever installed the pipe flattened it to fit inside the wall- it appears to have been flattened so its' about 2" thick and 10" wide, as that's what I see coming out of the basement ceiling. I'm guessing that the "chimney" is (or rather, was) double wall, the visible part in the basement seems like it was double walled, which, when flattened, is still double walled, but now with no airspace. The exposed furnace flue pipe is about 5" diam, single-wall, and it was flattened so that it would fit inside the flattened chimeny, and because the flattened flue pipe was smaller than the flattened chimney, there's an open space (about 1.5" wide) on each side of the furnace flue as it goes into the chimney. Through these 2 open spaces, with a flashlite, I can look up and see the chimney cap on the roof, and can also see that the chimney is flattened for a good 10-12 feet. The inside of the chimney is also covered with a lot of black soot.
The hot water heater flue is connected to the furnace flue, or more correctly, run into a hole that was cut in the side of the furnace flue.
My attorney is aware of the situation, and any offer would be written so that the necessary corrections would need to be made.
Several questions. One, would the average house inspector look close enough notice what I've described and call attention to it / flag it, or would they merely turn on the furnace, and if it worked, say OK? In the event I do make an offer, the attorney would make it contingent upon a satisfactory inspection, but is the house inspector the appropriate person to flag this installation? Who would be the most appropriate person to perform the "official" inspection? Second, what should a "correct" installation for a setup like I've described look like? I'd cetainly insist on an inspection for whatever was done, but in this rural area, I'm not sure the municipal inspectors fully realize, at times, what they're looking at. Is it normally double-walled pipe? What clearance from combustibles (the present flattened pipe is resting against at least one of the 2x4 studs)? Is it permissible to connect the water heater flue into the furnace flue, and if so, for the gas installation, is any draft regular required for the common "chimney connector"?

ANSWER:

During the recent purchase of our first home (17 year old re-sale) we hired a house inspector who saved us big bucks. In our jurisdiction
(Ottawa, Canada) house inspectors are not required to be licensed.
We received prices of $75CDN to $300 CDN for house inspectors. We went with a firm that charged us $240 CDN, was fully accredited and insured. The inspector insisted that I be present for the inspection with him, and to allow 4 to 6 hours, so that he could point out and explain any defects. We were aware of several, but he also found unsafe wiring in the furnace room
(tucked away and held together with masking tape), a furnace flue that had fallen out of it's vent stack (he was amazed the current owners were still alive), and for a furnace inspection he spent almost 45 minutes on the unit, checking the draft, inspecting with a mirror and flashlight, etc. He found a minute crack in the heat exchanger. Our jurisdiction allows some heat exchangers to be repaired by welding, so he phoned an HVAC tech and found that the current model in the home could not repaired legally by code.
The owners did not believe his report (he provided a detailed written report), so they called the gas utility to inspect, and the unit was promptly red tagged and disconnected. Luckily they agreed to pay for a new furnace (it was darn cold at the time) and vent stack repairs (over $4000 CDN) as part of the purchase conditions.
I guess the motto is "buyer beware". A good home inspector would catch such a problem, or any serious problem. And of course, you get what you pay for. I couldn't believe how detailed this company's inspection was, and they found other "obvious" things that I would never have thought of, and with minimal effort and cash I have corrected, avoiding major repairs.
Here, eveyone and their dog is a "home inspector". Shop around, demand references, and speak to people in Real Estate that know. Check with the better business bureau, and ask your attorney if it is possible to check if your choice of inspector has, or is currently, being sued.


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