There is a standard clause on all Ontario Purchase and Sale Agreements that specifically states that the person or persons in question warrants that no UFFI is present in the home.
"23. Seller represents and warrants to Buyer that during the time Seller has owned the property, Seller has not caused any building on the property to be insulated with insulation that contains ureaformmaldehyde…”
Ureaformaldehyde insulation (UFFI) was popular during the 70’s and 80’s in home construction and subsequently banned in North America as a precaution due to formaldeheyde. This ban occurred prior to a court case which failed to prove that UFFI was a danger.
The longest and most expensive civil case in Canada involved formaldehyde and was eventually thrown out after the plaintiffs could not prove that UFFI made them sick and that having UFFI inside their walls decreased the value of their homes.
Enter Kitec plumbing.
It’s a brand of plastic piping manufactured by IPEX used in plumbing and heating systems in residential and commercial units between 1997 and 2005. Its key benefit was its ease of installation compared with copper piping. A North American class-action lawsuit was brought before the courts for pre-mature failure of the products due to inherent design flaws.
The class-action lawsuit against Kitec was settled in 2011 and a US $125 Million dollar fund was established for those wishing to advance a claim for replacing the pipes in Canada and the US. Claimants have until January 2020 to file a claim.
No pre-printed clauses or stigmatizations have resulted from the Real Estate industry but prudent Realtors and buyers should know what to look out for.