Posted by Don Dion on June 22, 2005 at 23:28:50:
How do you know the mold is removed from the whole house an just not where you found it? What happens if a new owner takes off the electric plate on one of his outlets and finds mold? In some of the homes down in FL after last years storms they are still not mold free and waiting for their turn on the drywall load so they can remove all the drywall in the homes remove the underlaying mold and then re-drywall.
HUD home with Mold …Avoid? - Posted by JNP
Posted by JNP on June 22, 2005 at 21:46:31:
If a home has MOLD present, should it be avoided? What are the costs of MOLD removal? What are you liable for selling a home which has had MOLD removed? What kind of disclosure must you give to buyers? In short, is it worth it?
Has anyone had experience buying a rehab with mold?
Thanks in advance,
JNP
Re: HUD home with Mold …Avoid? - Posted by Killer Joe
Posted by Killer Joe on June 23, 2005 at 13:25:07:
Hi JNP,
I just sold a rehab that had a mold issue crop up at the last moment due to the wifes sudden anxiety over the issue (love those office watercoolers). I had to pay $1200.00 to have some plaster removed, the studs treated, and new drywall installed. The owners signed a release form stating they were now solely responsible for any and all molds found in the house, and that I am no longer liable (for whatever that’s worth), but a legal document none the less.
This was done outside the “Mold Remediation Police” circles, as once they are brought in the costs to me would have been about $12K (big diff!!!) I guess what I’m saying to you is if the mold problem in that house has been ‘institutionalized’ and needs to be handled by ‘the pros’, the costs could easily wipe out any profit you may have seen.
I recommend you do your homework on this one. These mold remediation problems are the new Lawyer ATMs, and if your buyer suddenly catches a cold in your place, they now have the guns to go after you. Get a release from your buyers like I did if you can. It may help down the road.
HTH
KJ
Re: HUD home with Mold …Avoid? - Posted by Randy (SD)
Posted by Randy (SD) on June 23, 2005 at 09:21:03:
Mold in a house is as common as dirt in the yard, it is a naturally growing organisms and exists in every structure to some degree. It is caused by excess moisture, so the first step is determin the source of the moisture. Is there simply excess humidity from a property being closed up, or a leak in the structure (roof, Windows, plumbing)? Determine the source of the water, stop that source then determine the degree of mold. Removal can be as simple as washing the surface with bleach water to as complex as removing drywall, carpeting everything down to the studs (major renovation). A lot more information is needed to answer your question “should the property be avoided”. As for your liabilities when selling a home which has had mold removed, there are standard disclosure forms that may be required, but again it depends on the degree of mold and renovation performed. HUD is extremely fanatical on the subject of mold, most every HUD home will have a “mold is present declaration”… don’t worry about it, if the numbers work go for it.