Mold/Mildew issue uncovered after 3 months of purchase

[Vikram Aryan]

Hello,

Thank you in advance for the support this community offers to new investors such as myself.

We purchased a 8-unit multi-family property in Q4-2019. During the purchase process, we only got access to 2 units for inspection. Fast forward to Jan-2020, one the units (which was NOT inspected) were vacated by the tenant stating that there is mold/mildew in the shower. Note that this is ground level unit and there was a theory at first that external moisture is causing it so we tried to work with the HOA. One thing led to another, we are now uncovering that the mold/mildew build-up is substantial and has spread to the adjacent closet. We are now told that the Shower Pan Liner needs to be replaced, for which we received a quote of $10k!

Few questions:

• >> Is this something homeowners insurance will cover?
• >> Is there a disclosure for mold/mildew that we should have asked for at the time of purchase(just like we do for lead paint)?  Can we go back to them now?
• >> Given that the root cause is bad installation, would the HOA share/cover the cost?
• >> Finally, I know we let the tenant off the hook already, but should we have held their deposit?

Any advice will be much appreciated.  TIA!

[Ned J.]

You rolled the dice on not inspecting all the units...... and one you didn't look at has issues..... that's on you....

And this isn't a tenant caused issue from your description.....so you would not be justified in holding deposits $$ on this. It has to be caused by the tenant....not just happen while they are living their. You can't prove they caused the issue or played ANY role in it happening....at least not from what you posted