Kitec Plumbing Can Cause Problems

Kitec plumbing is a type of pipe that is
vulnerable to premature failure, and
REALTORS® should be aware of this
product, which may damage a home and result in
costly repairs.

The existence of Kitec plumbing can also expose
REALTORS® to liability, since Salespeople are
required to take reasonable steps to discover and
disclose material facts about a property, according
to the Real Estate Council of Ontario (RECO).
Kitec plumbing was commonly used in homes built
between 1995 and 2007, and otherwise for general
plumbing repairs or renovations. The Kitec system
was sold under a number of different brand names
and in a variety of colours, and it consists of pipes
and fittings. In 2005, it was recalled because the
pipes and fittings were found to have a tendency
to corrode quickly and can fail entirely, which can
lead to flooding.
“Not all real estate Salespeople across the province
will have encountered this type of plumbing before,
but it’s important for them to be aware that it’s out
there so they can be prepared,” says Cassandra
Agnew Walker, senior manager, standard forms
at the Ontario Real Estate Association (OREA).
“Because our Members have obligations to
consumers, Kitec should be on their radar in case
they encounter it over the course of listing and
selling.”
“Members should be asking the questions and
disclosing that information so it’s there on the table
and so that all parties to a transaction are aware
and informed of the existence of this product,” says
Agnew Walker.
“The repair of Kitec can cost from a few thousand
dollars up to tens of thousands of dollars,” she adds.
“The bill to remove and repair this plumbing can
be substantial, and it can also lead to insurance or
mortgage issues. This should not necessarily be
considered a minor matter.”
A class action lawsuit was initiated in 2011 against
IPEX Inc., the manufacturer of Kitec. Funds are
set aside to enable claimants to possibly recoup
some money to help cover the cost of repairs
and remediation of Kitec plumbing, if needed.
REALTORS® and consumers may wish to speak to
a lawyer about this type of claim.
The OREA standard forms committee has added
a question about Kitec to two OREA standard
forms: the Seller Property Information Statement
(SPIS) Form #220, and the Residential Information
Checklist Form #820. The added question asks
whether there is Kitec on the property. Two new
Kitec Plumbing
Can Cause Problems
OREA standard clauses were also added in 2016,
and Members are encouraged to review them.
If Kitec does exist at a property, one of the new
clauses contains text that a buyer acknowledges
that a property has Kitec. If a buyer expresses
concern about the existence of Kitec, the other new
clause contains text that the seller has not installed
Kitec. The forms and clauses mentioned here can
be found on the OREA website at orea.com in the
Members’ section under Standard Forms.
Lou Radomsky, a Toronto lawyer and outside
counsel to OREA’s standard forms committee,
recalls an encounter with Kitec plumbing. “I was
representing a buyer on a condominium purchase
and the status certificate identified Kitec plumbing
that would have to be replaced,” he says.
“My concern on behalf of my buyer client was
whether this was going to be a charge through to
her, how much it would cost to repair and whether
she would want to go through with the purchase.
In that instance, the condominium corporation
had already allocated money in its reserve fund for
that, and after some discussion with my client, she
decided to proceed with that purchase.”
“However, people should be aware that repairing
Kitec can be a very expensive undertaking,” adds
Radomsky. “Not only do you have to replace the
pipes but you also have to get access to them,
which can mean knocking down the walls and then
repairing them after replacing the pipes.”
RECO has posted and published information on the
topic of Kitec plumbing and registrants’ obligations
around material facts. The RECO articles reiterate
that this type of product can damage a home and
result in costly repairs for the home owner. RECO
encourages registrants to find out how to identify
Kitec and seek expert assistance from a home
inspector or plumber when necessary. Such a flaw
can be considered a material fact.
If you wish to learn more about Kitec, several articles about
Kitec plumbing have been produced by RECO:
• Kitec Plumbing and Material Facts
• More information on Kitec plumbing
REM online magazine has published an article on Kitec by Toronto
REALTOR® Richard Silver titled Is Kitec the new UFFI?
In addition, Carson Dunlop Home Inspection Services has published
an article, The Story of Kitec Plumbing, on its website.
Published originally in OREA’s Edge, June 2016.