Thank you all for your opinions. This is what I ended up doing. While I thought that changing the MCB was a good idea, the HI's report clearly stated that the house was equipped with a 200A electric service. I wouldn't expect that a HI would pick up on the fact that the breaker panel was changed out without permits or inspections and that the SE cable and meter enclosure were not changed. By the same token, neither the HI or the potential new buyers are not my customer. So, I ended up correcting all the violations cited by the HI and billed my customer for the work and materials. In addition to my invoice I provided a list explaining the corrections I made. I then sent my customer a letter detailing the defect and code violation in the electric service along with a proposal to correct the violation.
I did this because I didn't think that broadcasting to the new potential buyers, and their lawyer was a good idea since they weren't my customer. I didn't see any benefit in stating that this was a gross Code violation and that they really didn't have a safe 200A service. Now, IMHO, my customer has the onus of responsibility to bring this subject to the forefront if he chooses to do so.
To add insult to injury, as I was making the corrections cited by the HI I couldn't help but notice more Code violations that he didn't pick up on.
- As I walked around the back of the house I noticed an extension cord plugged into an outdoor receptacle (I didn't even look to see if it was GFCI). What struck me as odd was the cord disappeared into the ground and after looking around I saw a 10' x 10' shed that was being powered by this cord.
- While correcting issues in the garage I noticed MR-11 recessed light fixtures in the ceiling along with a ceramic tiled floor. I can't imagine that a car was ever parked in there (and yes, there is living space above the garage).
- Every room that I walked into had a motion sensor associated with the lighting (bathroom included). Not sure if that is a Code violation or not.
- There were no working smoke alarms in the house at all
- Two out of four kitchen counter receptacles were wired on the same circuits as the basement receptacles
None of this was brought out in the HI's report nor did I bring any of this to the attention of my customer. As far as I'm concerned I was hired to correct the violations cited. The HI stated in his report that the current HO should have a licensed EC come in to further inspect the house. IMHO, just because the HI made this statement doesn't put me on the hook for any additional work or corrections.
Any further opinions would be appreciated?