Mold is one of the most feared terms when it comes to real estate deals. Most people walk away from the house of their dreams as soon as they learn that the house they are about to buy has mold.
This article aims at providing some insight as to what mold is and what it means for buyers and sellers of a property if mold is present in the property.
Let us begin with describing, what it is?
Mold
Mold is a general term used for Fungi. Mold is everywhere and in every environment. There has always been mold and there will always be mold. Outdoor mold is part of nature and natural process. Mold growing indoors, however, is unhealthy and hazardous.
There are different types of mold and not all of them are hazardous. Mold becomes an environmental hazard when it grows and gets out of control. Excess humidity and moisture for longer periods of time can cause the growth of mold to reach toxic levels.
Other than moisture, molds need oxygen and organic food sources to grow.
There are various types of mold. Most commonly found in homes are described below.
TYPE OF MOLD | PLACES FOUND | HEALTH EFFECTS |
Acremonium | Found in places like cooling coils, humidifiers, window sealants and drain pans. | Effects immune system and causes bone marrow diseases. |
Alternaria | Found in bathtubs and showers. Spreads really fast. | Causes watery eyes and cough. |
Cladosporium | Found in carpets and other fabrics around the house. | Causes respiratory issues and other allergic reactions. |
Penicillium | Found in mattresses and wallpapers. | Causes asthma and other respiratory issues. |
Trichoderma | Found in wallpapers, fabric and old air conditioning. | Causes lung infection and allergies. |
Stachybotrys (Black Mold) | Found in damp areas of the house that have felt humidity for longer periods of time | Most dangerous and causes serious health issues. |
Should I buy the house with mold?
Answer to this question cannot be a simple yes or no. It depends on a number of factors such as which type(s) of mold, how much it has grown, how much damage it has caused, and how much cost and effort would be required to eliminate it.
Molds are of different types. Not all types are hazardous and even the ones that are, their impact takes a long time to take effect. Which means you should take your time and assess the situation before walking away from the deal.
Mold discovered in a house during home inspection puts the buyer in a strong negotiating position. You can either have the seller fix it or negotiate a discounted price to remove it yourself.
We certainly don't recommend taking mold lightly nor do we say to walk away from the deal as soon as you see the signs of mold in the house.
Mold is everywhere and it can grow in any house that has conditions suitable for its growth. Which means you should always be prepared to deal with it.
If, as a home buyer, you have discovered mold before the purchase, you can negotiate with the seller and in most cases the seller will be dealing with it before the deal is finalized. But, if you found the mold after, it will be your sole responsibility. If in doubt, consult a mold expert. Based on their recommendations you can decide how to proceed with the deal.
You can ask the mold expert things like, how much damage to the property has been done and whether or not it is beyond repair, how difficult it would be to remove it and how much would it cost? They can also recommend ways to prevent mold growth in future.
Seller's Disclosure Obligations
By law, sellers are obliged to disclose defects and flaws in the house they are selling. Those defects are not minor cosmetic flaws and are obvious but the defects that are hidden and that can potentially endanger the health and safety of the buyer.
To elaborate this further, defects have been categorized into two general categorizes:
Patent Defects
Flaws and defects that are obvious and can be observed by a visual examination. A keen and thorough buyer will see a patent defect and if not a home inspector will be able to discover those defects.
Examples are: Leaky roof, Uneven floor, cracks in the wall or floor etc.
Sellers are not legally obliged to disclose patent defects. But, a seller will be held liable if they deliberately hide a patent defect.
Latent Defects
Latent defects are hidden; neither the buyer nor a home inspector can discover these defects just by a visual examination. An invasive inspection can only detect those flaws.
Examples of latent defects are: Damage to electrical or plumbing inside the walls or leak in the foundation, water damage or mold etc.
It is the obligation of the seller to disclose latent defects to the buyer. If you are a seller and are in doubt, be sure to consult a real estate lawyer.
Is mold a latent defect?
Presence of mold is not always visible especially if it is present in the concealed areas of the property, such as, inside the walls, attic, behind appliances etc. Also, if the property had a mold but has now been removed the seller is legally required to disclose this to the buyer.
Mold Removal
If you are a home buyer and a general home inspection report has revealed the presence of mold in the house. The best course of action is to have a mold expert do a thorough assessment of the property to determine the true extent of the problem.
Mold removal can be expensive, it can cost several thousand dollars if it has grown and spread to the entire house. Your decision whether or not to go head with the deal should be based on the advice of the mold inspection expert.
If you are a seller, you will have to have the mold removed from the house before it is sold. Our best recommendation is that a certified mold removal company is hired for the task rather than experimenting yourself. Professionals have the knowledge, expertise, tools and PPE to deal with it.
Cost for mold removal can vary from a few hundred to several thousands of dollars depending on the spread and damage caused.
Conclusion
Mold is a living organism which is present in nature. It is not dangerous outdoors but its growth indoors can reach toxic levels and exposure for too long causes allergies, respiratory problems and various other health issues.
A seller is legally obliged to have mold removed from the house before it is sold. But buyers must also do their due diligence before purchase by having the house inspected by licensed professionals because sellers may not be aware of the presence of mold. And a seller can be held liable if the mold is discovered after the sale and the buyer cannot prove that the seller had knowledge of the presence of mold.
To most people, whether buying or selling, home inspection and then further mold inspection may seem like an unnecessary overhead but in order to protect such a huge investment this overhead is totally necessary and is highly recommended.
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