Foreclosure in 31024>Question Details

Jana, Both Buyer and Seller in Eatonton, GA

Do you have to tell buyers of previous mold damage?

Asked by Jana, Eatonton, GA Tue Jul 14, 2009

I'm looking at a house that has some pretty bad black mold damage. It's a foreclosure, and I would be looking to fix it up and resale it. My question is after I've taken care of the mold damage and put the house back on the market do I have to tell buyers about the previous mold damage or not?

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The truth will set you free!!
2 votes Thank Flag Link Tue Jul 28, 2009

My firm handles a great many foreclosures, and mold build-up in a long vacant property, in Georgia especially, is not unusual. "What you see is what you get" in the foreclosure market, but resale is an entirely different matter.

First of all, it is the law, in Georgia as elsewhere, that you have to disclose it as a previous defect, as well as what you did to correct it. On the other hand, most mold situations are understood, again, especially in Georgia, as not life-threatening issues and can occur even in occupied homes that are not well ventilated or air-conditioned. That's importantly, MOST situations, not all.

Secondly, mold analysis can be expensive, as can be remediation. If the issue is localized to a small area or room, your chances of an inexpensive and effective cure are much greater than if it permeates a significant area of the home, and especially if it has "rotted" sheetrock on walls and ceilings. If that's the case, tread carefully. You may want to find another option, as in another foreclosure.

Good luck,
1 vote Thank Flag Link Tue Jul 14, 2009
Since you are proclaiming what the law is, can you provide a Statute or Case citation for the proposition that a fully remediated issue must be disclosed to a buyer?
Flag Wed Nov 13, 2013
Yes, you do have to tell buyers about previous mold damage when you sell a house. There is a 'duty to disclose' defects.
0 votes Thank Flag Link Thu Mar 17, 2011
Disclose, disclose, disclose. Mold remediation is all over the place in pricing. Get more than a few estimates and ask for referrals from previous clients. If remediated correctly and the event causing the mold is repaired you shouldn't have a problem.
0 votes Thank Flag Link Mon Mar 14, 2011
Yes. You must disclose everything you know about the property. When you sell the property you probably don't want to look back to a law suit if something should reappear in the future. You should tell all and provide the paper work from the contractor who completed the work. That would be your best option.
0 votes Thank Flag Link Mon Mar 14, 2011
Yes. If you mitigate correctly and disclose that to the next buyer you will be in good shape. With the internet and the way information travels deep and wide there are no longer secrets...Good luck.
0 votes Thank Flag Link Mon Mar 14, 2011
You must always disclose any issues you are aware of.
0 votes Thank Flag Link Mon Mar 14, 2011

yes, The sellers disclosure is what you know to the best of your knowledge. If you repair it correctly and supply the documentation from a mold remediation specialist who should give you a 12 month guarantee, then you will be fine.
There is always a stigma with mold so if you have other mold free properties I would look at them first. This is something you do not want to take shor cuts and if it effects your rehab budget and cash flow model then walk away.
0 votes Thank Flag Link Wed Jul 15, 2009
In California, YES! It is always better to disclose then to withhold. Remember the Golden unto others as you would have done unto you.
Web Reference:
0 votes Thank Flag Link Tue Jul 14, 2009
Yes. Mold remediation should be disclosed.
0 votes Thank Flag Link Tue Jul 14, 2009
Yes...It is wise to disclose this very important finding.
Keep all of your receipts and test results...
You don't want any law suit in the future from non-disclosure!

Once you have the mold removed and treated, make sure you have a
follow-up air sample done before you move in or resell!

Treatment will stir up the spores, and you really need to conduct a
thorough cleanup and retesting!

Many people, especially children, the elderly and those with auto-immune diseases are
vulnerable ...

Also, in foreclosed properties, it is wise to get a good exterminator and if you have a basement with that property, it is highly recommended you conduct a Radon Gas test as well..

Any questions...feel free to contact me ..

Robin DiSabatino
Michael Saunders & Company
Cell: 941-685-5368
0 votes Thank Flag Link Tue Jul 14, 2009
You are aware of it and if you're smart you'll disclose it when it's time to sell. Get it remediated and provide a clearance letter, if it's done right then you shouldn't be on the hook down the road. If however you "forget" things, understand that there are huge ramifications, especially with mold.

On a side note, you better be stealing this house and you better ensure that you get a good estimate on any repairs - mold has a habit of getting everywhere....loves the HVAC ducts.

0 votes Thank Flag Link Tue Jul 14, 2009
if you know it, disclose it.
0 votes Thank Flag Link Tue Jul 14, 2009
it is recommend that you disclose any issue on a house and prehaps provide a cert
from a mold guy to show it was removed by a professional
0 votes Thank Flag Link Tue Jul 14, 2009
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