SHOULD I BUY THAT MOLDY HOUSE?
HOME INSPECTIONS, REAL ESTATE LEGISLATION, REAL ESTATE PRACTICE, TIPS FOR BUYERS, TIPS FOR SELLERS
August 10th, 2008
House with Mold
Mold has been a hot button topic ever since Ed McMahon, jocular sidekick to Johnny Carson, sued his insurance company claiming his moldy Beverly Hills mansion was making him and his family ill. This March, Ed was in foreclosure and trying to sell the home in a hilltop gated community for more than $6 million. He blamed his financial difficulties partly on the mold issue that required expensive remedial renovations to the 6-bedroom, 5-bathroom home and the costly medical problems that ensued, allegedly from mold exposure. The publicity this case generated resulted in copycat claims that have insurance companies running scarred.
California responded to these concerns by passing the Toxic Mold Protection Act of 2001. The act directs government agencies to study indoor mold and set Permissible Exposure Limits (PEL’s). In 2005, a report titled Implementation of the Toxic Mold Act of 2001 was published. Scientists concluded “that although recent studies have strengthened the evidence between living or working in a damp environment and increased risk for respiratory symptoms, the role of mold growth in these complex environments is still unclear“. Damp buildings also encourage the growth of bacteria, dust mites and cockroaches, as well as degradation of wet building materials that can also release irritant chemicals indoors. Thus, PEL’s cannot be established at this time for indoor molds.
A seller of a 1-4 unit property is required to disclose whether they are aware of mold or any other environmental hazard including asbestos, formaldehyde, radon gas, lead-based paint and fuel or chemical storage tanks that affects the property. If a seller is aware mold is present on the property, answer yes on the Transfer Disclosure Statement and clarify, to prevent confusion, that he or she does not know if it is an environmental hazard. Only a mold expert, after sampling and evaluating a specimen, can determine if it is a strain of mold known to be toxic. The seller has no obligation to remedy a mold problem, only disclose the presence of same.
One precaution a seller can take is to provide the buyer a booklet titled “Environmental Hazards: A Guide for Homeowners, Homebuyers, Landlords and Tenants”. Giving a buyer this booklet is optional, but it is one I have made available to all my sellers. The sellers sign the booklet acknowledging providing the booklet, and the buyer signs the booklet to acknowledge receiving it. Providing the booklet does not relieve the seller of the obligation to disclose known environmental hazards.
The jury is still out as to possible health hazards associated with mold exposure. Further regulations may change seller’s obligations regarding mold infestations. I take the time to keep abreast of law changes that impact real estate practices. If I can assist you with any real estate matter, provide a free market analysis of your real estate holding, locate a real estate professional in another area or assist you in purchasing a property, contact me at:
530-224-6767 or 530-941-7492
BRAD GARBUTT
REAL TOR/BROKER
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOACL REAL ESTATE EXPERIENCE
Hello,just found your Blog when i google something and wonder what web hosting do you use for your web site,the speed is more faster than my web site, i really want to know it.will back to check it out,thank you!
In credit card debt restructuring, an existing personal debt is replaced with a new personal debt. This may perhaps result in reduction of the principal (debt relief), or may alter the terms of payment, for instance by extending the term (changing a financial debt repaid above five years with 1 repaid more than 10 years), which enables the same principal to be amortized over a extended time period, therefore permitting scaled-down payments.
Oh my goodness! an amazing article dude. Thank you However I am experiencing issue with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting identical rss problem? Anyone who knows kindly respond. Thnkx
I got here quick whereas in the past throughout your web site and have been studying along. I believed I would depart my preliminary comment. Maintain writing, trigger your articles are fantastic! Would not it take up very much time to keep your website so fascinating ?