Potential Buy and Hold

[Daniel Foster]

I am looking at a property that I feel I can buy at a significant discount, but it may be for good reason . . . In the disclosure, the line that reads "Substances, materials or products which may be environmental hazards . . ." is checked yes. Lets say there is mold in the property somewhere. Obviously you do the due diligence to make sure the issue is taken care of, but since there is a public record of there being an issue, is there some kind of sign off that needs to be done to state that the issue has been taken care of? I would plan to buy, renovate and rent, so I want to make sure I do everything above board. I walked through the house and there is some water damage, so I think the issue may be related to mold caused by that, but am not sure yet.

Any suggestions are appreciated.

[Travis West]

Daniel,

If you are looking to provide a buyer or tenant "some kind of proof that the mold has been taken care of" you're going to (IMHO) have to hire an outside consultant or contractor. Let them put their reputation on the line as that is what their insurance is for.

Yes. You could certainly provide some kind of written proof that you completed the work (done by yourself and signed by you) but that is only as good as your word ... And that could also carry some long-term liabilities with it.

My perspective comes as a licensed mold assessor in the state of Texas, and as an expert witness who has testified in lawsuits between parties after the disclosure, repairs, and sale were completed poorly.

If your issue of concern is small then I'd say (at the LEAST) you should hire a consultant to recommend how to solve it, and then have them test the air (a clearance test) after any work is completed.

If it is a larger issue you may need the consultant AND a remediation contractor. Then the consultant would still need to do the clearance testing after any remediation was completed.

Some localities (or states) require a state-issued document as proof that the work was completed and that the home is safe. Some other localities do not. That document would become part of the sales documents. The downside is that regardless of your location or local regulations, you must do it right to avoid putting your business at risk.

I have seen some enterprising attorneys make a "mountain out of a molehill" where mold is involved.

Good luck. Let us know how it works out or if you have other questions/concerns.

Travis West