From you original post, it appears the purchaser, your client, appears to want satisfaction from the vender, not you.
I would not loose any sleep over this.
Report it to your insurer, and don’t lose any sleep.
As long as you reported your findings, and hopefully followed with the required recommendations, "Further evaluation required by a licensed electrical contractor. Install junction boxes, insure ungrounded lighting circuits are protected, & to “Act upon any recommendations therein.” You should be good to go.
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“Canned narrations”: I modify my canned narrations all the time to fit the particular finding being reported. By changing a word or sentence, it makes for much better communication relative to the specific issue you are reporting. Are your narrations easy to modify for a “one time use”?
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I wouldn’t worry too much about this one. Basically, the client called the agent and the agent threw out a few things, basically to get the client off their own back (at least for a little while).
Just be straight up with the client and tell them that there is no way a typical home inspection could catch this deficiency as it is hidden from view, and that the seller likely didn’t know about it either. Tell them to get a few quotes for their wiring project and that adding the boxes typically isn’t going to add much (relatively speaking) to the total bill.
Bottom line, It’s an old house, not a new house.
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yup already changed a few of my narratives.
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Keep working them over. I edit, improve, add, combine, etc. multiple narratives still on almost every inspection. And I’ve been working on my template for 4 years or so, lol. Always something that can, and should be, improved.
There are some nifty tools online that you can run your narratives through to help improve them. Often, improving involves reducing the word count by removing unnecessary words.
Here’s a great tool I use a lot. Just copy/paste your narrative in and it will refine it and correct spelling.
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Yeah, the science behind who a buyer opts to blame post-inspection is interesting. This one seems reasonable/logical that you aren’t the one but that’s not always the case.
I’ve had them both ways - buyers coming after me when we had absolutely zero chance of discovering what they’re bitching about… or, them going for the seller when we kind of screwed up…or, at least, could have done better.
Realistically, most people are fair and reasonable but like everything… the nuts ruin it for everyone and shape this industry. As in, protecting ourselves and fearing every client is going to file suit against us.
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You reported an outdated and potentially unsafe wiring method and improperly retrofitted grounding receptacles and recommended evaluation by an electrician. Other than rolling up a paper copy of the report and smacking them upside the head with it, I can’t think of anything different you could have done.
Edit: I take that back. Smack their realtor upside the head. They’re probably the one that downplayed your recommendations.
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You did just fine! 
Now, just shut off your defense mode and see how it plays out.
Gather everything about this job (which it seems you did) and now research everything about K&T that is beyond your scope of inspection. This is for you, not to educate the client.
Think of it this way, you did what you were there to do. You recommended what should be done about the issue going forward. This is where you stop! Do not add or change anything to make things better (verbal or written). What was done is done. You can’t change anything now. If lawyers get involved, all kinds of crap seems to come out of the woodwork! You are only there to clarify what was done. If you add or make changes, someone is going to ask or imply why wasn’t that in the report? If they want your opinion, you’re not qualified to give an opinion of another trade (or it would be spelled out in your Inspection Contract). The clients’ lawyer should be calling the expert for opinions, based on your findings and recommendations. You’re there to bring the written word to life. How you came up with those recommendations and what you wrote in the report is your concern only. Your research should help you back up what you did, and why (SOP, know it by heart).
Another issue:
Good advice.
No canned narrative fits any two houses. It’s location alone needs changing.
While you’re changing narratives, I recommend they only describe the issue and is the same for every occasion. In this case, K&T. You see it in the house and why this is a concern in general. As this is a significant concern, continue spelling out everything that applies should be added. Seeing this requires thought, potential research, opinions form here and typing, this should be done after you are done inspecting. In the process of finishing up the inspection, I almost always come up with something else that is associated elsewhere in the Inspection. Not good for the onsite report writers though. This added information makes for a much better report, and answers all those post inspection phone calls!
HI reports seem to collect a wealth of unnecessary fluff to make it look like we did something. How about spending that time documenting that which matters, just for an occasion like this?
Good luck with this!
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As you stated, it does not look like they are coming after him.
However, things change when lawyers get on board! They don’t care who they take down to make the case.
At this point, why are we calling our insurance provider?
No claims or complaint have been made against him. Don’t you think this is premature and could make matters worse?
Install junction boxes, insure ungrounded lighting circuits are protected, & to “Act upon any recommendations therein.
It is not the inspector’s job as to how it should be repaired.
NACHI SOP
2.2. Exclusions:
- the cause or reason of any condition.
- compliance with codes or regulations.
- correction, replacement or repair cost estimates.
- estimates of the cost to operate any given system.
If you are not an Electrician, you are not qualified to tell the Electrician (or which trade should be involved) what and how it should be repaired. Aside from the SOP interpretation conversation, when you start telling your client how things are to be repaired, the lawyers can now go after you for things you neglected to recommend to the client.
Generally this is not an issue, but generally there are no lawyers involved as in this matter.
In most cases, issues like this will be elevated in the courtroom to a point that the house is uninhabitable, and you didn’t recommend that.
Fruit of the poisonous tree:
The HI is first in line in this issue. What follows, is based on the HI Report. If they take the HI out, the issue is dead in the water. There is a big target on your back.
This is just my perception from my time spent in criminal and civil court over many years. And not in Canada.
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Thanks for the help everyone.
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