I have heard they exist, but I still just don't see them. I see partially renovated homes. I see new granite tops and nice tile backsplashes, but the wiring from 1951 is behind the receptacle (see picture) in this Wantagh NY home in the photo is ungrounded. How can you possibly have ungrounded wiring in a newly renovated kitchen?
Building codes and the NEC (National Electric Code) dictate wiring methods, and when you perform a renovation, you are supposed to take out a permit, have it built to modern codes and standards, then have it inspected. Then you put the house on the market, describe it accurately, and sell it.
This is never done here on Long Island from my point of view. Sellers attempt to deceive buyers all the time. Luckily most people have an inspection before purchasing. In this case, the seller promised all would be repaired, and then rescinded that statement after he realized the buyer was not buying unless the items called out in the report are properly repaired by a licensed contractor.
Obviously the seller hired people who don't have a clue what 'building code' means, and these people should not be in business. The electrical receptacle in the picture is being checked with a tester that is showing one center light on the tester indicating an ungrounded receptacle.
I am happy the buyer walked away from this house, and hopefully find something that has not been 'renovated' by an unscrupulous seller/flipper who should be working at Wal-mart.
Ray Wilson is a Home Inspector, covering all of Long Island (Nassau and Suffolk), the 5 boroughs of NYC and now upstate NY. For any home inspection related questions he can be reached at Meticulous Home Inspection Corporation. He can be reached at 631-902-6761.