Best Odor Eliminator
Information for realtors
Who ever heard of a home not selling because of mold? Or of a "mold contingency?" Five years ago, no one ever heard of such a thing. But mold is getting more attention and home inspectors need to look for mold on a regular basis, if they are not doing so already. Most of us laugh at the idea of mold entering into a real estate transaction. But here is the problem: mold litigation is on the rise. More and more lawyers are handling cases relating to mold exposure. And some judgments have been awarded in these cases, suggesting that they may have legal punch.
Mold exists everywhere, all of the time. It usually does not bother anyone. But there are some times that mold can be a problem. Problem #1: It can be a problem for people who are unusually sensitive to mold. Some people experience respiratory problems when they are exposed and they can become very ill. Problem #2: Black mold. Some molds, for example the "black mold" that has been around forever but people are now talking about, seems to make people ill. Again, some people seem to be more sensitive than others, but this black mold appears to have a greater propensity to cause problems.
Researchers estimate that about 10 percent of the population is severely allergic to mold. Depending on sensitivity, people may experience headaches, runny nose, skin rashes, memory loss, coughing and long periods of listlessness. Those who are most sensitive may experience severe asthma or feel they have a perpetual case of the flu. Newborns, the elderly and those with compromised immune systems can be severely and even fatally affected. Susceptibility varies with genetic predisposition, age, state of health and level of exposure.
Mold exists everywhere, but it really likes dark, moist areas, such as dirty heating ducts. And a leaking roof that has slow leaked for a long time can create moisture and encourage mold growth. Combine that, with a particularly sensitive person, and you may have a lawsuit. As a result, realtors and inspectors need to understand the mold issue. Maybe, mold will have to be disclosed by sellers. Especially if a homeowner knows there is an ongoing mold problem that may not be apparent from a basic inspection. When to disclose is a fact specific legal issue, but I believe that mold disclosure will not be uncommon in the near future.
In recent months, developers, building owners, home builders and others in the real estate industry have faced an avalanche of legal claims growing out of a substance that is found almost everywhere on earth, is 100 percent organic and has been alive longer than the human race -- mold.
An array of mold claims have been filed against commercial-building owners, home builders and even public authorities that own municipal buildings and courthouses. Almost overnight, mold has joined radon, lead-based paint, asbestos and underground storage-tank leaks as sources of environmental concern for real estate professionals.
In most of these cases, plaintiffs alleged some sort of construction defect that allowed excess moisture to enter their buildings. Defects such as faulty foundations, improperly flashed roofs and simple plumbing mistakes are commonly claimed. In other cases, plaintiffs allege that contractors allowed building materials
If moisture is caused by something not included on the seller’s disclosure form, such as a cracked foundation, a leaky roof or the property’s susceptibility to flooding, a possible cause of action may lie against the seller for an ensuing mold infestation. The Texas Association of Realtors’ seller’s disclosure form was revised to include an item addressing mold. The Texas Department of Insurance opened hearings in June 2001 to address whether mold and mildew damage coverage should be included in homeowners’ policies. Insurers want to exclude coverage because of the high costs involved. Investigating a mold claim and covering the additional living expenses for the homeowner runs an average of $10,000. If mold removal is required, cleanup costs can rise to $30,000 per claim. A possible flight to new homes by first-time or move-up buyers could cause either a glut of existing homes on the market or a wave of teardowns to be replaced with new housing. Either way, the outcome is good for the new home market, not the existing home market. If the existing home market suffers because of mold and other environmental issues, affordability for first-time homebuyers will no longer be a problem. They will have their pick of homes.
What can Realtors do? Encourage sellers to get inspections of their homes that include searches for mold. Encourage buyers to get multiple inspections by specialists in pests, structural integrity (including gutters and other drainage solutions) and mold. For first-time buyers, be ready to help them get coverage with a list of insurers which are willing to write new homeowner policies with prices that include mold remediation. As rates could as much as double with mold coverage, help buyers figure their affordability (PITI) by including much higher rates for insurance coverage than in the past.
Mold exists everywhere, all of the time. It usually does not bother anyone. But there are some times that mold can be a problem. Problem #1: It can be a problem for people who are unusually sensitive to mold. Some people experience respiratory problems when they are exposed and they can become very ill. Problem #2: Black mold. Some molds, for example the "black mold" that has been around forever but people are now talking about, seems to make people ill. Again, some people seem to be more sensitive than others, but this black mold appears to have a greater propensity to cause problems.
Researchers estimate that about 10 percent of the population is severely allergic to mold. Depending on sensitivity, people may experience headaches, runny nose, skin rashes, memory loss, coughing and long periods of listlessness. Those who are most sensitive may experience severe asthma or feel they have a perpetual case of the flu. Newborns, the elderly and those with compromised immune systems can be severely and even fatally affected. Susceptibility varies with genetic predisposition, age, state of health and level of exposure.
Mold exists everywhere, but it really likes dark, moist areas, such as dirty heating ducts. And a leaking roof that has slow leaked for a long time can create moisture and encourage mold growth. Combine that, with a particularly sensitive person, and you may have a lawsuit. As a result, realtors and inspectors need to understand the mold issue. Maybe, mold will have to be disclosed by sellers. Especially if a homeowner knows there is an ongoing mold problem that may not be apparent from a basic inspection. When to disclose is a fact specific legal issue, but I believe that mold disclosure will not be uncommon in the near future.
In recent months, developers, building owners, home builders and others in the real estate industry have faced an avalanche of legal claims growing out of a substance that is found almost everywhere on earth, is 100 percent organic and has been alive longer than the human race -- mold.
An array of mold claims have been filed against commercial-building owners, home builders and even public authorities that own municipal buildings and courthouses. Almost overnight, mold has joined radon, lead-based paint, asbestos and underground storage-tank leaks as sources of environmental concern for real estate professionals.
In most of these cases, plaintiffs alleged some sort of construction defect that allowed excess moisture to enter their buildings. Defects such as faulty foundations, improperly flashed roofs and simple plumbing mistakes are commonly claimed. In other cases, plaintiffs allege that contractors allowed building materials
If moisture is caused by something not included on the seller’s disclosure form, such as a cracked foundation, a leaky roof or the property’s susceptibility to flooding, a possible cause of action may lie against the seller for an ensuing mold infestation. The Texas Association of Realtors’ seller’s disclosure form was revised to include an item addressing mold. The Texas Department of Insurance opened hearings in June 2001 to address whether mold and mildew damage coverage should be included in homeowners’ policies. Insurers want to exclude coverage because of the high costs involved. Investigating a mold claim and covering the additional living expenses for the homeowner runs an average of $10,000. If mold removal is required, cleanup costs can rise to $30,000 per claim. A possible flight to new homes by first-time or move-up buyers could cause either a glut of existing homes on the market or a wave of teardowns to be replaced with new housing. Either way, the outcome is good for the new home market, not the existing home market. If the existing home market suffers because of mold and other environmental issues, affordability for first-time homebuyers will no longer be a problem. They will have their pick of homes.
What can Realtors do? Encourage sellers to get inspections of their homes that include searches for mold. Encourage buyers to get multiple inspections by specialists in pests, structural integrity (including gutters and other drainage solutions) and mold. For first-time buyers, be ready to help them get coverage with a list of insurers which are willing to write new homeowner policies with prices that include mold remediation. As rates could as much as double with mold coverage, help buyers figure their affordability (PITI) by including much higher rates for insurance coverage than in the past.
