In the 2008-2009 General Update class on Material Facts, the NC Real Estate Commission made the following statement:
“Is the mere presence of polybutylene piping in a structure a material fact? Polybutylene piping is made from a plastic resin and was commonly used for a couple of decades in lieu of copper piping for water supply. The plastic tubing connected at various junctures into joints or “fittings.” These fittings were of two types, either “insert” or “non-insert.” Complaints arose from consumers about leaky pipes, especially where pipes met an “insert” type fitting. Notwithstanding a Tennessee class action lawsuit which resulted in a fairly substantial settlement
between the manufacturer and claimants, the Commission’s study of this issue more than a decade ago revealed that:
● not all, or even most, polybutylene piping with insert fittings commonly fail;
● if a defect exists in the piping or fittings, it typically is not readily discernible; and
● no neighboring State has determined that the mere presence of polybutylene piping is a
material fact.
Thus, the Commission concluded that the mere presence of polybutylene piping in a structure is NOT a material fact. However, it becomes a material fact that must be disclosed when the licensee knows or should have known that there was a probable defect in the polybutylene piping. A licensee might know of a defect because s/he inquires and the owner honestly reports any water issues, or because the licensee sees evidence of water damage on walls, ceilings or floors. A licensee may have reason to know or suspect a problem where s/he is aware that there is a history of pipe failure in the subject property or is aware that polybutylene piping in some of the adjacent condos or town homes in the community have failed.
The Commission recommends that listing agents affirmatively inquire as to the type of piping in a property and whether there have been any problems with it in the past. If in a town home or condominium community, the agent should ask his/her owner whether s/he is aware of any problems with other units. If the answer to either is “yes,” then the agent should disclose this information to any prospective buyer and recommend that they have an inspection.”
This advice has not changed, and the mere presence of polybutylene pipes is not a material fact. A broker representing a buyer might consider, as a best practice, advising their buyer client to discuss the matter with their insurer prior to making an offer. If the insurer has restrictions, then that would be material to that buyer so the broker should ask about the presence of polybutylene pipes on behalf of their client.