Mold found in crawl space/buyer backed out!

[unfreshdiva1]

Just a rant here - my house was supposed to close next week. Inspection was done on house and some mold was found in crawl space under downstairs bathroom. Buyers freaked and want out of deal. Company is charging me $3,500 for mold removal and I let buyers know I would be taking care of issue and that there was no reason to back out. They backed out offically yesterday. I am just sick as I spent $$$ getting house painted and repaired before putting it on market, but have no idea I would have mold (no signs anywhere). Anyone else go through this? I need to check my homeowners policy to see if this may be covered as I definately need to have this done if/when another buyer comes along.

 

[bicker]

You may want to do it before another buyer comes along. Otherwise, you're obligated to reveal the condition in the sales contract (and that might prompt a buyer to never even sign the sales contract).

 

[SillyMe]

You may want to do it before another buyer comes along. Otherwise, you're obligated to reveal the condition in the sales contract (and that might prompt a buyer to never even sign the sales contract).

Even if the remediation is done before another offer comes along, they still need to disclose that there was mold and remediation was completed.

 

[barkley]

there's a real concern about mold issues so i would def. get it taken care of a.s.a.p.. it's not limited to resales either-there were a couple of housing developments in our area wherein the builders did'nt let the foundations cure quite long enough before they installed the flooring products-within 6 months the buyers were seeing the mold creep up through the flooring. that was what they saw until the building inspectors came in and found it was already creeping up the interiors of some of the walls. it was a huge expensive mess to clean-luckily for the buyers most new homes around here come with a 1 year warranty on all aspects of damage so they got it taken care of.

 

[bicker]

Even if the remediation is done before another offer comes along, they still need to disclose that there was mold and remediation was completed.

I was wondering about that as I was posting my message. Thanks for the update.

For how long after mold removal is it necessary to reveal this?

 

[dmslush]

After having lived in an apartment for years that had a mold problem, I really can't blame them for backing out. My family was sick most of the time we lived in the apartment. We never realized how bad it was until we would go on vacation and be fine, come back and be sick. I think I would be afraid of risking buying a house that already had some mold issues.

I hope you are able to get it fixed and find a new buyer!

 

[claudia]

I don't understand how they legally can back out of the deal. The idea of the inspection is to uncover problems and then have the seller make the necessary repairs. If you corrected the problems shown by the inspector, how did your attorney let them not close on the house?

 

[bicker]

Unfortunately, that's not how it works, unless you explicitly write it that way in the sales contract. Generally, the contract indicates that any significant issue found by the inspection can serve as grounds to back out of the deal. As a buyer, I would never sign a contract that said that I would have to still go through with a deal if something bad is found in the inspection, unless I had final say whether or not the remedy was acceptable, so basically that just means I'd have the option to pull out of the deal if something were found. Remember, the buyer is about to spend perhaps hundreds of thousands of their own money -- they're going to insist on that level of control.

 

[sajetto]

When we bought our house there was a portion of the contract that allowed us to back out if any issues were found that would cost over $2,000 to repair. Luckily, nothing was found except for a couple of rotten porch spindles

 

[Marie17]

We could also back out if repairs were over $1000 by a company (not a handy-man). Anytime a repair has been done on a house - it legally needs to be disclosed.

 

[SillyMe]

I was wondering about that as I was posting my message. Thanks for the update.

For how long after mold removal is it necessary to reveal this?

I believe it's indefinitely.

 

[bicker]

Indefinitely? But only for mold, then, correct? I have some ice dam damage, which I've repaired. Surely there is no need to include a list of everything that has ever been repaired at a house in the disclosure.

 

[SillyMe]

Indefinitely? But only for mold, then, correct? I have some ice dam damage, which I've repaired. Surely there is no need to include a list of everything that has ever been repaired at a house in the disclosure.

I'm referring to the Seller's Disclosure. There are specific questions that need to be disclosed regarding material defects. For examply, you need to disclose if your house has EVER had water in your basement, termites, structural damage, mold, etc...

This is PA anyway. Here's a link to the Real Estate Commission's website. You can click on the link for the disclosure.

http://www.dos.state.pa.us/bpoa/cwp/view.asp?a=1104&q=433100

 

[The Mystery Machine]

In Texas we have to sign a "Mold Document" when we buy a house relieving the buyer, insurance, you name it off of liability somehow...not sure of all the details. It is a major problem in Texas.

Sorry your buyers ran the other way...I have to say I am severely allergic to mold and would not even consider buying your house. I hope you get another buyer soon!

As far as disclosure...well if you do not disclose it, and they can link the damage to something that you did not disclose then you are setting yourself up for a lawsuit.
The disclosure is a BIG CYA for the seller.

 

[cardaway]

Sorry but their backing out sounds legit, not to mention the right thing to do. I wouldn't touch a house with mold issues.

 

[Linnie The Pooh]

We just sold our house in June and we signed a document stating that we probably had mold, but had never been aware of any just in case the buyers come back in 5 years, sick with mold symptoms, and try to sue us. Our realtor told us nearly ever house will have/has some sort of mold issue and unless you sign that you realize your's could, the new owner can sue the pants off you at some later date. So I would seriously think about never hiding that. You don't want to get sued.

When we had offers on our house (we had 3 in all) they all put in the paperwork that the sale would be contingent on an inspection. So if there was anything found, they could back out, even it was something minor. It's very stressful.

Our inspectors raked us over the coals!! Please try not to let it bother you too much. Our first potential buyer gave us a full price offer, very good deal, but stated we needed to replace the roof. The inspector came in, found a rotten portion on a window and a crack in our garage door. We fixed them, but the buyers still backed out-even after we spent $5000 on a new roof! Turned out his wife hadn't really liked the house and they had 2nd thoughts.

Our next offer, the inspector found a leaky pipe under the house and that our heat light in the bathroom was defective. Uh, a light bulb had burned out and it wasn't a heat lamp-it was a regular light. The offer went through, but it was still very stressful. Nerve wracking, actually.

 

[janette]

I would be cautious of doing anything with Insurance. If there is a mold claim in TX most insurance companies won't issue a policy for the house. That can kill any house deal, I had a friend trying to buy a house and had to walk away because no one would insure it due to prior claims.

In TX mold isn't covered, for a short time you could have coverage if you paid outrageous amounts but I think most of the companies aren't even offering coverage now.

 

[mickeysgal]

Sorry but their backing out sounds legit, not to mention the right thing to do. I wouldn't touch a house with mold issues.

I agree. Mold can also be present in the air if it has had the chance to get into the air ducts. Once it gets into the ductwork, it becomes next to impossible to contain and clear.

We were under contract for a house once and discovered mold. We had an air quality inspection done (separate specialized inspection) and sure enough, it was that black, toxic mold - the stuff you see Primetime reports on. It was in a separate workroom that wasn't connected, duct-wise, with the rest of the house. We had air and wall samples taken throughout the house and it was contained in that room. However since it was so vast, and the fact that it was THE toxic black mold, that we decided to walk fast away from that contract. Lovely, lovely home, though.

My advice, get it professionally fixed and have a separate inspection done so you can show prospective buyers that even though you have to disclose it, you're "in the clear" now. It may give them reassurance.

 

[FreshTressa]

Oh no! That is terrible!

What a nasty thing to find out at this stage of the game.

 

[unfreshdiva1]

Thanks for the responses. I'm so upset about the entire situation, but I'm planning on getting it fixed and then move on and hope next buyer is the right one.