Mold Damage Disclosure Mold Property Damage Disclosure Mold Real Estate Damage Mold Disclosure

PROPERTY DAMAGE

Today the real estate industry is facing a relatively uncharted encroachment — MOLD. Prospective buyers are becoming aware of it and have a concern, sellers don’t want to think about or deal with it and real estate agents are caught in the middle. Though mold can certainly throw a monkey-wrench into a real estate transaction, it doesn’t have to end in a lost sale of property.

Mold is MANAGEABLE
By exercising a few systematic steps to correct the conditions for its growth and cleaning it up, most mold problems can be resolved. The first step in the process is understanding what the problem is and how it came about. AMI offers cost-effective inspection and testing services to accurately identify mold issues and find the source, without prejudice, bias or conflict of interest.

High incidence of mold.
According to the Environmental Protection Agency, molds are found in up to 50% of all structures. Contrarily, many other studies show 100% incidence of mold in structures. Public exposure to mold appears to be universal and can probably be discovered in almost every indoor environment. The root concerns for those worried about the hazards of mold is their exposure to high-risk contamination levels and catastrophic financial losses resulting from unrepairable structures.

Proactive steps.
Some owners of real estate have found it beneficial to conduct a “pre-emptive strike” against mold inquiries from prospective buyers. A mold inspection and mold testing ordered by an owner prior to the listing or sale of property offers disclosure, evidence and a good faith enhancement to prospective buyers.

Minimizing liability.
Even if the initial results of a owner-ordered mold test indicates a potential problem, they have the opportunity to correct and abate the mold problem. When appropriate corrective action is taken, the follow-up clearance testing should provide results favorable to potential buyers. This proactive measure by the property owner minimizes or eliminates liability and litigation.
 

 
Litigation in California.
Mold-related litigations has skyrocketed upwards of 300% since 1999. One example: April 2004 - A plaintiff in a mold lawsuit initially awarded multi-millions of dollars in punitive damages against Allstate has died at age 99. He was a few days short of his 100th birthday on April 12. In 1999 the plaintiff refused Allstate’s offer of $17,300 to repair his home and filed a lawsuit for the company’s bad-faith dealings in handling his homeowner’s insurance claim. A three-week trial in 2000 resulted in a jury awarding him $18 million in punitive damages — the presiding judge lowered the amount to $2.5 million. An appeals court then stripped the near centenarian of the $2.5 million in punitive damages and awarded him $628,646, an amount that paid his nearly $239,000 in legal fees and $290,000 to put toward home repairs.

Mold inspection can benefits all parties.
Whether purchasing a new or old home or building, the buyer should include mold inspection to the home/building and termite inspection requirements. Doing so can avoid problems as encountered by the above new homeowner. Most important to any pending real estate purchase, the buyer should first contact and have their insurance agent run a claims history on that piece of property. If there has ever been a mold damages claim on the residence or building, some insurers may not offer coverage to the new buyer — or coverage costs may be prohibitive due to the property’s mold history.

Seek mold help from a qualified professional.
Whether you are a real estate agent, a seller or a potential real estate purchaser with a concern or issue about potential mold problems, AMI is available to assist and assess those conditions. Mold and mildew consulting, inspections, mold sampling/testing and solutions for mold problems and damages are available to real estate companies, property owners & managers, property sellers and potential buyers by Advanced Mold Inspections  1-800-369-8532.

 

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