TIPS FOR HOME BUYERS

States are cracking down on a sellers' obligation to disclose known "material facts" about properties for sale especially conditions not readily apparent. A "material fact" is anything that could affect the sale price or influence a buyer's decision to purchase. Most real estate companies and associations recommend using a "Seller's Disclosure Statement." and "Mold Disclosure Statement." Under the disclosure statement guidelines, the seller is obligated to disclose any known facts that may negatively affect the property value.

The most important thing you can do as a buyer is to play an active role in the inspection process.

Here are a few tips to keep in mind:

Disclosure. Demand full disclosure of prior water moisture intrusion, structural damage, interior water leaks, and any knowledge of mold. By law the home sellers are required to inform buyers about anything in disrepair that could affect the property's value in a negative way (material defects). Purchasing a home on an "as is" basis is extremely risky. Remember, once you have purchased the home, you will become wholly or partially responsible for subsequent repairs should you sell the home at a later date. An "as is" does not waive the need to have full disclosure.

Inspection. Conduct a building and mold inspection prior to closing. It is surprising that many home buyers still wave this option, especially in competitive, "seller's markets". But regardless of the market, every buyer should seek a building and mold inspection to avoid potentially catastrophic losses. Building inspectors are not mold experts.

Follow Up. Consult with your real estate agent or seller if you have concerns regarding the disclosure statements and inspection results. Few buyers see the need to verify or question (mold) disclosure statements; yet when the inspection results contradict the seller's claims, you should certainly seek further clarification.

If Mold is Present. Demand that a microbial contamination specialist perform a more thorough inspection. At this stage, many buyers and sellers will part ways due to the perceived hassles of further investigation. Still, a number of sellers are willing to allow whatever is necessary to complete the deal. The cost is typically assumed by the prospective buyer; however this is open to negotiation. If you intend to have a mold inspection, be sure you maintain a realistic perspective. If the seller discloses the existence of a prior mold problem, ask to review all relevant information such as reports, abatement plans, and documentation of the actual abatement process. The seller should be able to demonstrate that the problem was properly abated. Request a second opinion, consult with a microbial specialist to review these documents and perform another inspection.

More on Mold Inspections. As previously mentioned, mold inspections for real estate transactions differ from the "typical" mold investigation, namely because the seller rarely agrees to invasive inspections (inspections of wall or ceiling cavities). Still there are a few protocols that can be performed with minimal damage to the existing infrastructure: visual assessment of all accessible areas, photographic documentation, moisture assessments, sampling, and review of disclosure statements, maintenance records, and prior abatement or inspection protocols.

TIPS FOR SELLERS

OK, you've read all the news about mold and you are determined not to let this ruin your next home purchase or sell. But a building inspector won't guarantee a mold-free home and a comprehensive mold investigation might sour the deal. What do you do?

The mere thought of mold contamination is enough to send any seller into a state of despair and frustration. But there is little reason to be concerned if you have properly maintained your home and if you have taken prudent measures to repair and document past moisture and mold-related problems. Still, mold contamination can be nerve wrecking on both sides of the closing table; so let's look at some of the most common seller pitfalls:

Be Proactive: Before you put your home on the market, hire a building and mold inspector to find out what's wrong with your home. Burying your head in the sand won't do any good, because a prospective buyer's building inspector will likely discover any problems. If not, surely the buyer will find them later, and then you could be in for a lawsuit.

The proactive seller may already have the results of a mold inspection in hand prior to listing. We recommend this only if the property has sustained prior water damage or known mold contamination. Your proactive stance will be viewed as an ethical, good-faith gesture. But be sure to follow through by giving the buyers the opportunity to contact the consultant and/or abatement contractor directly. Mold inspections for real estate transactions differ from the "typical" mold investigation, namely because invasive inspections (wall or ceiling cavities) are rarely acceptable.

Disclose, Disclose, Disclose. Failure to disclose is perhaps the most common problem that sellers encounter. Whether its intentional or not, failure to disclose will cause some major headaches in the future. Maintain a comprehensive list of all repairs (minor or major). Pay particular attention to issues involving water damage - even seemingly small problems. If areas such as wall cavities need to be inspected, prepare to do so long before you list the property. If you are in doubt whether you should disclose small concerns, don't hesitate.. go ahead and disclose. Disclose everything and don't conceal anything.

Make All Necessary Repairs. Before you list the property, be sure to take prudent steps to repair all damage related to water intrusion and mold contamination. Now is not the time to cover up mold growth with buckets of paint. If you suspect a mold problem, hire professionals to investigate and remediate. If a legitimate unabated concern exist, either agree to repair the problem before the sale or be willing to assume a good portion of the overall cost of repairs.

Document. One of the advantages of paying the added expense of a professional mold investigation is that you now have sound documentation for future disclosure. You can demonstrate with confidence that you have taken the steps necessary to identify and repair all known concerns. But be sure your consultant and abatement contractor provide a detailed account of all work performed. For example:

Say your mold inspection turns up a plumbing leak between the walls within the master bathroom. No serious mold growth has occurred, because the problem was detected during the mold investigation and repaired by a licensed contractor. Now your records show a plumbing repair and not mold abatement due to a neglected plumbing leak.