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The harnessing and distribution of electricity has improved our lives in ways that cannot be understated. In our homes today, you are inconvenienced if one of the eight outlets in your bedroom is six inches further than your smartphone cord can reach from your bed. We take for granted this marvel that delivers almost unending power on demand to every corner of our homes and lives, but a discovery of aluminum wiring in a home causes people to gasp and faint in horror. While I am not an electrician, I will explain the issue from a real estate practice perspective for easy digestion.

History

Copper is widely known as one of the best electrical conductors readily available to the marketplace and has been used in wiring applications since the discovery of electricity. During the 60s, the demand for copper as well as its price was skyrocketing, making the use of copper wiring cost prohibitive. There was an alternative already approved for use in wiring applications, and that was aluminum, a much cheaper alternative with ample supply at the time. Although aluminum is not as conductive as copper, this could be compensated for by using larger gauge wire to move the same current safely and that is what was done. Between the early 60s and the late 70s, aluminum became widely used as wiring material for homes throughout North America.

The Problem

Aluminum had some differences in installation which were not always followed strictly by the installers. Aluminum required more care to prevent nicking or breaking of the wire itself or the sheathing, and special plugs and switches were designed to use aluminum wire. Especially in the early and late years of use, when the industry was transitioning into and out of aluminum wire use, the specialized plugs and switches weren’t readily available, or more expensive and anti-oxidization compounds were not widely used.

So, what is the deal with these extra requirements that copper didn’t need? Aluminum is not as good of a conductor and the resistance in the alloy produces more heat than copper naturally, which is why the larger gauge wire was used to compensate. When copper oxidizes its oxidation is also a good conductor of electricity, but unfortunately when aluminum oxidizes, its oxidation is not a good conductor leading to increased resistance and more heat. To add to the problem, aluminum oxidizes not only in the air but mainly in contact with other metals so as basements were developed in the 80s and 90s and wired with copper, those junction connections between aluminum upstairs and copper downstairs also caused this oxidation heat issue. If that wasn’t enough, aluminum also expands and contracts at a different rate than copper and brass, so when twisted with copper in a junction box, or screwed down on a brass terminal for a plug or switch, the expansion and contraction of the aluminum with its heat resistance issues cause the aluminum to work its way out of these connections over time. This condition is called “Cold Flow” and will eventually cause arcing as the electricity tries to jump from the loosened wire to the connection with can cause heat, sparking and fire to surrounding flammable building materials.

Buyer Default 

The AREA standard purchase contract goes on to specify some specific items expected in a buyer default that would require the seller to be made whole. Depending on the point of the default, the lawyer may have already triggered the transfer of title which would need to be reversed to regain the title, enforce any liens against the property, or even regain possession of the property in the case of tenancy at will or other arrangements anticipated in the agreement. These are only examples of allowable cost claims but do not limit the seller’s ability to pursue other remedies either. Additionally, the deposit section of the agreement states that in the event of a buyer default the deposit is disbursed to the seller without prior notice, a portion of which deposit may be owed to the seller’s brokerage through the listing agreement, but the balance of which will almost certainly be used to retain legal counsel to file claims for remedies related to the buyer default.

The Solution  

Well, now you know the problem so the solution must be to rewire the whole house, right? Not at all, aluminum wire in the walls and ceiling is not the issue as I explained. The issue is primarily in the connection to other metals such as incorrect receptacles or joined to copper connections, so the simple solution is to correct those connections. The most common form of this remedy is a practice called “pig-tailing” which should be done by a licensed electrician. Basically, all the plugs and switches in the home are removed from the wall and a short piece of copper wire is connected between the aluminum service in the wall and the plug or switch itself. The connection between the aluminum and copper wire is made using a specialized wire nut and an anti-oxidizing compound. Then the new copper-rated receptacles can be placed back in the wall and are safe. A licensed electrician will also determine if junction boxes contain copper and aluminum connections which also require correct wire nuts and anti-oxidation compound.

How to tell if you have aluminum wires

Well, vintage should be your first hint. If the home is built between 1960 and 1980, or close to that, you should take a quick peek at the electrical panel. The wires coming out of the electrical panel will typically have printing on them every 12 inches and if they are aluminum will often have the abbreviation AL or ALUM or some variation of that. If you can’t tell that way, an electrician or licensed inspector can determine for you by opening the panel or checking certain receptacles.

Insurance

At the time of writing this article, I have yet to hear of an insurance company that requires a house to be rewired from aluminum to copper. The main reason is that there is nothing wrong with aluminum wiring when installed properly and using the correct receptacles. In fact, the current electrical codes still recognize both copper and aluminum wiring as acceptable, although aluminum wire in household gauge is not manufactured anymore because of the stigma attached to it. It is normal however for an insurance company to require pig-tailing to be done within a certain number of days of the possession of a property to protect against the possibility of poor installation or bad connections.

Aluminum wiring has been largely unmarketable since the 70s and therefore not profitable for manufacturers to make it, or its specialized receptacles. The existence of aluminum wiring in a home is not a poison kiss, but an opportunity for a REALTOR® to educate their buyers and sellers about the facts surrounding this, and to know enough about the subject to determine when a licensed electrician should be consulted. If the fix has not already been employed, it is relatively cost-effective, quick, and hardly inconvenient so there is no reason to wait on getting it done.

There can be no doubt that pets are a significant part of our lives today. A recent study by the National Association of REALTORS® showed that 70% of households have a pet, but only 40% have a child under 18. Moreover, 20% of all buyers said they factored their pets into their real estate buying decision! As a former REALTOR® myself who has chased my fair share of escape-artist cats down the street in slip-on loafers, I think it is important to highlight some pet tips for buyers and sellers.

Sellers With Pets

The most important thing to consider when selling your home is how potential buyers perceive it. The ideal presentation of a home is clean, decluttered, and free of distractions, so a buyer can slip into the land of make-believe and start to imagine themselves in the space and begin placing furniture in their mind. Although your pet is wonderful and well-behaved, some buyers are terrified of animals, and some pets act differently when their owners are not around. For this reason, the ultimate course of action is to remove the pet from the home for showings or at least kennel them when showings are possible.

Additionally, be aware that nose blindness is real, and the smells you are used to don’t register to you anymore simply, so remember the smell of clean trumps the smell of pets every time. Take extra steps to ensure you have washed, wiped and deodorized all pet areas to remove that objection by the buyer.

Finally, pet accessories can also get run down or ugly, such as beds, scratch poles, or stuffed toys that have seen too many tugging matches. Remember, the idea is to help the buyer mentally move in, and all these things can distract from that goal when you simply don’t know who will ultimately buy the home.

Buyers With Pets

People love their pets, and, in many cases, they are considered as close as the human family. For this reason, there are considerations for buyers looking for a home for themselves and their pets. There are the obvious ones, such as access to a yard, proper fencing, and proximity to walking trails of off-leash parks, but are there other considerations? Yes, each municipality can set its guidelines on licensing pets, noise bylaws, and limits on the number of pets in the home, so you should check with the municipality to ensure they align with your plans.

Additionally, suppose you are considering a condominium property. In that case, the condominium corporation can also set its bylaws on the number, type, and even size of the pets permitted in the unit as well as noise controls and penalties. Most condominium corporations will require buyers to seek written approval from the board for their specific pets, and that approval is both conditional and revokable by the board if violated. Since condominiums are common ownership, the corporation can enforce their pet bylaws within the law. Some cases have even required owners to sell their units by court order in extreme circumstances! If pets are a big part of your property decision, be sure you have considered municipal regulations and condominium bylaws when applicable before making your decision.

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