Tuesday, May 10, 2016

Seller Not Disclosing Defects

 If you are planning to buy a home, the sellers are required to disclose all known defects but they don't always do so. As a home buyer it would be in your best interest to take the time to hire your own home inspector and here's why.


A former client of mine purchased a home for the first time and she was so excited, especially after baring the burden and making every effort to become qualified to purchase this home. During our initial phone conversation, the woman was very disappointed because the home she had just purchased was contaminated with what she suspected was mold.

The poor woman upset and crying stating that the sellers failed to disclose this problem and now she felt it was too late to do any thing about it because escrow had already closed.  The woman continued to say that she had already had a home inspection. She hired a home inspector recommended by the sellers’ agent, but the inspector failed to notice and identify the existing problem. 

 After hearing the situation, I scheduled an appointment with her since I was a certified mold inspector and registered as an environmental specialist at that time. I arrived at the location, and went into the home and I immediately encountered a significant musty odor. Knowing what the odor was right away I started my investigation. During the course of my investigation, I immediately discovered a significant amount of water damage and microbiological growth in the kitchen space.


The existing mold contamination, resulting from excessive water damage, involved the entire bottom cabinet space in the kitchen, structural members below the kitchen sink, both of the kitchen counter tops, the concrete slab, and the dining area below the breakfast bar, as well as the dishwasher compartment and drywall. 


Mold on sheet rock and wood members supports

It was unbelievable to see water leaking from the hot water angle stop under the kitchen sink causing the new home owner to use buckets and pots as a catch basin. 


Bucket filled and over flowing with water under sink


As I continued to investigate, I also discovered that someone, which I suspect to be the seller, had patched and painted over the contaminated drywall under the kitchen sink and cabinets in an attempt to cover up the problem. 



Walls were painted over in an attempt to cover up the problem



In the end, according to the lab results, the existing contamination was identified as the lethal Stachybotrys a known micro toxin producer, which required immediate remediation at a cost of approximately $5,000.  Stachybotrys is a black fungus that feeds on water damaged material like insulation, dry wall, and wood. You do not want this black fungus in your home because it is very dangerous.



Stachybotrys toxin producer found in the dishwasher compartment


After the new home owner submitted my report to her insurance company, it was fortunate the home owner, did not have to bare the remediation expense. Instead, the insurance company had to pay the full cost and they were not happy. 


This is the reason why the home buyer should be aware of how to protect his or herself during a real estate transaction; this kind of thing goes on even today. Even though California has a disclosure law which went into effect in the first week of October 2001 SB 732 Re: toxic mold disclosure, this law was clearly ignored by the seller or possibly other parties involved in the transaction. I believe that the seller had knowledge of the excessive water presence and the existing mold contamination.

The only motivation that the seller had was to hurry and sale the house quickly leaving the home buyer with the problems and expense. It is strongly recommended for all home buyers to hire their own insured professional home inspection company or an individual home inspector that you can trust and who respects your best interest. There are some home inspectors out there that are not working in your best interest. This kind of practice does not set very well with the home inspection industry and has smeared the images of truthful home inspectors.

It is clear that the seller failed to disclose a defect in the from of mold which was later identify as Stachybotrys a very dangerous black fungus that is a serious health threat. Instead they chose to deceive the buyer by covering up the problem. 

Don't let it happen to you. Ask your realtor for a full disclosure list of known defects from the seller. This is very important so you wont be left holding the bag filled with costly defects.


My friends, I hope that this little bit of information was helpful to you. May your home purchasing experience be a great one.


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