Erik,
Unless some one is from your city, then I don't think that anyone can help you. Now let me explain. Here in NJ, A home inspector can not make a seller bring his home up to the modern electrical code. However there may be a city law which states that certain things must be met in order to sell a home. For example, the smoke detectors must be wired and in operating condition, there must be GFCI receptacles in the kitchen, etc. This must be a law and on the town/city laws. I would call the city and ask them if there is a law that makes you bring the home up to code. Then ask for a copy of that law. Let your lawyers review it to make sure that it is a legal law. I have had many home inspectors try to make me bring old houses up to code. Now don't get me wrong, bringing an old home up to code is not a bad thing. It is actually rather good. However the new homeowner must be aware that they are buying a home that needs some work, and that they will bring the house up to the modern codes.
