Should I or shouldn't I deal with mold in my house

Should I or shouldn’t I deal with mold in my home?

If you have mold and you are selling your home you need to have it removed or disclose the fact that you have mold to the potential buyer. Case law exists where an owner of a home did not disclose and did not address the mold issue causing significant repercussions.

Can you imagine you put your home up for sale and a buyer puts in an offer, which you accept, conditional upon a satisfactory home inspection. The home inspection reveals the existence of mold in your home which causes the buyer to back out of the deal.

You put your home up for sale again, knowing these defects still exist. Should you disclose them to the next buyer? Here’s why you should:

Already an example of responsibility is on the books

Wendy Gunderson and Levi Gravelle bought a home from Wilfred and Mary Savoy in Elko, British Columbia in January 2006, for $178,000. Richard Lightburn, the real estate agent was a friend of Gunderson.

The home had been for sale on and off for three years with Lightburn as the agent throughout. An offer to buy the house in 2005 fell apart after the inspection. The inspection found mold in the basement crawl space, which suggested a high moisture level and that repairs would be necessary. The buyer walked away.

At the time this deal was negotiated, Lightburn was on vacation, so another agent in his office handled the negotiation. The agent then advised Lightburn about the problems in the report. Wilfred Savoy followed some of the recommendations of the home inspector in trying to fix the problem. Lightburn, the agent, was aware of these repairs.

When Gunderson was looking at buying the home a year later, she asked Lightburn about having a home inspection done and he told her that it wasn’t necessary and that everything was fine in the home except the furnace which was too small.

At trial, Lightburn said he told the buyers about the mold. The buyers said the opposite. The judge chose to believe the buyers on this point.

Shortly after moving in, there were serious problems with the home. Upon taking a shower, it was discovered that the water improperly drained into the crawl space and black mold was discovered. The mold later began to affect the health of the buyer’s daughter. They moved out of the home and started the lawsuit.

Estimates were brought at trial to show the cost to remedy the mold problem and restore the home would be over $70,000.

Judge’s Findings

At trial, on July 16, 2012, Judge Thomas Melnick found that Wilfred Savoy did try to fix the problem indicated in the inspection report to the best of his ability, following the instructions from the home inspector. He did not try to conceal anything in the home as he thought that he had fixed the problem. As such, the judge found that the sellers, the Savoys, were not responsible for the buyer’s damages.

However, the judge accepted the buyers’ evidence that they were not told anything about the mold in the inspection report from Lightburn. He found that given Lightburn’s knowledge of the history of mold in the home, he should have advised the buyers to check further into this. As such, he found Lightburn and the Real Estate Brokerage company responsible to pay damages to the buyer.

Judge Melnick determined that had the buyers known about all of the problems when they bought the home, they would have offered about $38,160 less, being the approximate cost to fix the problem at the time. He also awarded them additional damages for $10,000 as a result of the inconvenience to their lives and the health challenges that were caused as a result of this purchase, and legal costs.

The right thing to do

If you learn about a mold problem as a result of a home inspection, give us a call to give you a second opinion. Do the correct due diligence and fix the problem. Do not conceal this from a future buyer. Let the buyer know and have them check it out with their own home inspector.

 

 

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