Tuesday, November 29, 2011

Mold - Real Estate Deal Breaker


!±8± Mold - Real Estate Deal Breaker

There is mold everywhere. Mold has always been here and always will be. Mold, mildew, yeasts are microscopic fungi. Like dust and pollen, mold float freely through the air, settling where there is moisture and warmth. Mold blackens the grout lines in showers, the sheetrock in walls and ceilings. Mold releases microscopic spores that cause allergic reactions, runny noses, sneezing, coughing, watery eyes, as well as irritating odors.

Mold in a house that is for sale can be a deal breaker. First, it's a hygiene issue, and second, it's a liability issue. Someone gets sick, they claim they were not properly informed, and then they want to sue somebody. Here are a few stories.

Story 1

A street sewer line burst and the sewage flooded into the basement. After everything was dry, it was found that there were dangerous types and levels of mold. The lab reported molds such as Aspergillus, Stachybotrys, Candida, Helminthosporium (Bipolar), etc. Scary! It was explained to the buyers that the seller was paying for the remediation, but they said this kind of stuff couldn't be completely cleaned, and since they were allergic to mold, they had to back out. Another buyer bought the house, because he didn't give a hoot about mold, and the basement was going to be disinfected anyway. Different people see things differently.

Story 2

Another house flooded due to a broken water line in the kitchen. The entire floor level flooded up to three inches. Sellers did a lab report for mold, mildew, and spores. Mold levels were the same or less than outside so the buyers bought the house.

Story 3

Another house had mold in a closet and in the bathroom. The bank appraiser called it in his report and the bank made it a condition to lend. The bank asked for a licensed pest/termite inspector or mold inspector to clear it or say it was cleared. Buyer said, oh that stuff in the bathroom. I'll clean it myself. It's just like the stuff in my bathroom. Buyer got Tilex, bleach, and got busy scrubbing the closet and bathroom. Pest/termite inspector wrote a letter stating mold had been removed, and the bank made the loan.

Story 4

There was mold in the bathroom. Buyer was told to clean mold himself or pay someone to do it. Bank appraiser came and noted the mold in the bathroom. Buyer scrubbed it with cleaning products and then painted the bathroom. Appraiser came back said it was fine. Pest/termite inspector wrote a clearance letter but this particular bank did not like the pest/termite inspector's clearance letter. So a mold inspector was brought in; he saw that surface was clean and wrote a letter with a diagram stating bathroom was good. Buyer cost, . Loan got approved.

By the way, in this particular case, two other mold inspectors were called. One said it would cost 0 to take at least two air samples inside the bathroom and one outside. Another mold inspector said 0 to sample the entire house or just the bathroom. They both said it would take the lab three to four business days for the analysis and the report. Neither of them would do a visual inspection only, even though the mold had been identified only visually.

To give you an idea of what a mold report looks like click on Certificate of Mold Analysis from Pro-Labs, and for more general mold info go to US Environmental Protection Agency.   

If you're buying or selling a house that has mold, get the bleach out and be ready to scrub. Also open the windows to air out the place. A lot of bank owned properties are in poor conditions and shut tight for a long time...creating a perfect place for mold growth. If it's a major infestation, call the pros or go look at another house.

In addition to the health issues, mold has become a liability issue. The California Association of Realtors (CAR) has a disclosure entitled Radon Gas and Mold Notice Disclosure, advising buyers about the health problems caused by mold, and every brokerage has a mold disclosure of their own. Realtors disclose to make sure the buyer is aware and to avoid potential lawsuits.

Last, there are about 200,000 harmless types of mold. We are swimming in an ocean of mold (dust, bacteria and viruses). For the average healthy individual, limited natural exposure to mold and its spores is a part of everyday life and is usually not a health threat. For individuals who are sensitive to mold, however, consult a mold professional and a physician.  


Mold - Real Estate Deal Breaker

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