Seller's inspector found mold in condo, should we alert HOA?

Question

My parents are purchasing a condo in Huntington Beach, CA. It's currently in escrow. Last week seller's inspector found mold on the second floor ceiling (crawl space). They supposedly fixed it.  Our realtor said the inspector is a trusted big company, and that we don't need our own inspector. Today, we went to the property and saw a large wet spot on the first floor carpet, about 10-15 inch diameter. It's visibly wet but we don't see leak in ceiling.

Seller has offered to bring back his inspector and maybe a plumber to find out the problem.

My main question is: Should we alert the HOA of the mold problem?

My worry is that after we buy the property, and HOA or neighbor discover mold on their property, we will be held responsible. Is it better to bring this up now while still in escrow so seller and HOA and come to a settlement?

Bryan Zuetel · Answer

@David Stuart, I'm a California real estate attorney and broker and have dealt with this issue multiple times. Generally, yes, you want to contact the HOA regarding the leak and mold problem. Whether the leak and mold is the HOA's or seller's responsibility depends on a few factors and documents, most specifically the CC&R's, but the CC&R's are difficult to read and understand for most agents and non-attorneys. In addition, it is suspicious and unusual that the seller brought in his own inspector during escrow for a condo unit. The inspector is usually retained and working on behalf of the buyer.

So, contact the HOA, see what the HOA is willing to do, see what the seller is willing to do to remedy the situation, and decide whether you want to proceed with the transaction.

Stephen Huff · Answer

My perspective on this as a former HOA manager for a 104-unit complex in northern California is that the HOA needs to know because of the possible impact to adjoining units. We had one unit that developed mold because of a pretty much invisible roof leak. Obviously, the HOA was responsible in that case. So to me, telling the HOA is to get it documented that this was a problem BEFORE your parents purchased the unit. I'd push the repair guy to identify the source of the mold. And as I mentioned, this may be a problem in a part of the building that is HOA responsibility.

But I also think the ultimate responsibility is with the seller, their agent and the repair company. I wouldn't close escrow until all repairs and re-repairs were final and guaranteed. I'd be tempted to bring in my own inspector to confirm the correctness of the work. And then I'd get some sort of "hold harmless" document signed.

Out of curiosity, how old is the building? And are there any other reports of mold near the unit? I lived in HB many years ago (last century ;^) ) and the moist ocean air was always present.

Mike Cumbie · Answer

@David Stuart,

Personally I rarely (if ever) decide I need to call in some other agency to "alert" them of an issue. For instance you will read people all the time say "Call the REALTOR Board" or "Call the BBB" or "Contact your congressman and let them know" or "The Department of State is the one who shoul...". Once you start doing that make sure your ship is tight in all areas. If your dog starts barking expect it to become an issue with the dog warden and fines to start. If your setback is 9 inches off, expect someone to report it. If you took the catalytic converters off your sports car expect someone to point it out. If you are parking an RV in your yard, expect a notice to get posted.

Once you start "telling dad" other people seem to find all sorts of things you are doing wrong. You end up spending more time painting shutters the actual approved shade of brown than making money.

Good Luck!

Mike Cumbie · Answer

@Stephen Huff

My points:

The OP is not even a member of the HOA (and never will be, his parents MAY become members)

The OP knows there is a wet spot on the carpet the size of a dinner plate

The OP has not paid for an inspector and I would guess has no inspection report, he is relying on the word "Mold" which is passed through a seller and two agents, where a report could say "discoloration" or "Mildew". I do not know about California home inspectors, but here in NY a "home inspector" is not qualified to use the word "Mold". A "mold inspector" is qualified to use the word and a mold remediation company is qualified to clean it up.

Instead of hiring someone qualified to determine the scope of the problem, the proposed solution is to grab a bunch of other non qualified people (the HOA and neighbors) and have them provide resources to determine if.... wet spot in one unit = Life damaging problem.

My solution is to hire a qualified mold inspector that he pays for. He will then have someone certified, who will back up what they say. Then you know what you are dealing with. Just walking onto a property that you have no intention of ever owning, shouting Mold and firing people up is not "helping the HOA"

Just my 2 cents

Stephen Huff · Answer

Good point, Brian. I re-read David's original post and realized it was just a plumber who supposedly fixed the problem. Nothing was mentioned about the mold remediation. :^(  This is a serious problem, and there is a specific way these remediation guys work to clean away mold that's there and treat the area so it doesn't reoccur. But if there is water again on the first floor, then whatever they did in the crawl space under the  second floor didn't work. In-wall plumbing problems like this are often HOA problems, not the seller's. But it's still the seller's responsibility to fix it, which may mean they will have to file a claim against the HOA to get resources to fix it - and certify it was done properly.

I must also note that what I've said was based on my situation up north, where I knew the CC&Rs pretty thoroughly. Obviously, I don't know the specifics for this HB property.

David, I would err on the side of caution: make sure there are licensed remediation guys doing the clean-up work, and make sure the plumbers did their job, too. Unfortunately, this may mean cutting into a wall or ceiling to find the leak. But I'd want photos of the problem and the solution to prove the mold is gone and the leak is fixed before I'd close escrow.

Seller's inspector found mold in condo, should we alert HOA?

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