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Buyer in TEXAS has HUGE MOLD Problem from Undisclosed LEAKS, Who is responsible?

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PonyMakerskid

Junior Member
What is the name of your state? TEXAS! (Where EVEN The Mold grows bigger!)

We just closed on a house 2 weeks ago. In the disclosure statment, there were said to be no leaks. The house was built in 1984, and we WANTED to update some stuff. The Roof was old, but not severely damaged. There was a warranty, and we were given the receipt, for the Pier and Beam Leveling, but the house wasn't level. SO we called the warranty worker out. First issue. He claimed to relevel the house he had just leveled 2 months ago, we needed to pay another $350.00 and then after getting under there, another $900.00. But what was worse, he said there was an active leak. Well, we thought we were covered, Coldwell Banker had sold us a AHS warranty. So we called the Warranty. The Plumber came out, and said the leak was the air conditioning, and it had been leaking a LONG time....into the walls, into the wood floors, and sucking up into the insulation. He repaired the leak. Then my husband and I remember the talk that was going on at signing. The CB realtor was telling the seller how good the warranty was, and that it covered even the seller while they were selling the home, and didn't have to be paid for until closing--that date... Then she said, "Oh, I should have told you that! It would have covered the Air Conditioner leak while you were selling." We didn't see a leak, so we didn't think much of the conversation. So that was when we called back the Warranty company, and they don't fix the result of the issue...in this case the air conditioning leak.

So you might ask, why we didn't notice it? Well, they built a New built in Desk over the Carpet Over the Leak. They didn't have the Air on, only the fans whenever we went to the house, and the smell? Yes we noticed that..but we were told they raised animials and locked them on those particular rooms. There was even evidence of animal feces on the wet areas, so that seemed plausible. The put in a New Shower and a NEW WOOD Floor and a NEW BUILT in cabinet, over the wet molded area. So not knowing this, we started removing built ins! My husband fell through the entire floor! We can now see the ground from our front room.

I am disabled with an autoimmune disordered and now I am having light sensitivity and major head aches where I can't hardly get out of bed to find help with the situation.

I called back CB left a detailed message about what we found. (My husband quit tearing up because of the inches of mold that he found, but all our money is in this house, including we pre-paid the siding and roofers who are trying to get here but because of the rain haven't been able to work.) She said she personally paid for an extended warranty to cover pre-existing problems, but guess what? Mold is the one thing that VOIDS that warranty! So they won't cover the clean up at all. We are forced to stop and just live in this! I am very ill, even now as I write.

Our insurance said they are going to drop us if there is any sign of mold because we don't have a mold policy and also our mortgage company would drop us too if this happens we are told by a friend in realty.

What Can we DO? WHO is responsible? We haven't anymore money! This is not right! I am scared to send it off, because what if it is TOXIC Black Mold??? HELP ME PLEASE!
 


FlyingRon

Senior Member
Our insurance said they are going to drop us if there is any sign of mold because we don't have a mold policy
Never heard of such a thing. They won't pay mold related claims, but what justification do they have on other issues? Of course, at renewal time, they're under no obligation to renew you in most places regardless of what was found.
and also our mortgage company would drop us too if this happens we are told by a friend in realty.
Nope, your friend is ignorant. What happens is that the mortgage holder, when informed that you no longer have insurance, will purchase insurance to protect their interest and charge you for it. It's not cheap by the way, it's probably many times what you were paying before.
What Can we DO? WHO is responsible? We haven't anymore money! This is not right! I am scared to send it off, because what if it is TOXIC Black Mold??? HELP ME PLEASE!
You have a course of action against the seller if you can prove they knew about the leak or the mold and didn't disclose it, more if they intentionally tried to hide it from you. Your probable best course of action is to bring in a expert mold-mitigation company to do the repairs so your house will be habitable while you pursue legal action to recoup your losses.
 

moburkes

Senior Member
Since the insurance policy just started, they sure as heck CAN cancel the policy. They don't need to wait to nonrenew it.
 

moburkes

Senior Member
In TX, the insurance co WILL refuse coverage based on mold. Insurance in TX is a mess.
The policy has already been written. They aren't refusing to write the policy, which insurance companies will do in ALL states, not just TX. They are simply going to cancel the existing policy due to underwriting.
 

LindaP777

Senior Member
, because what if it is TOXIC Black Mold??? HELP ME PLEASE!
Don't panic yet! Lots and lots of different kinds of molds out there, we breathe them in everyday. Most are not a problem at all unless you are allergic. Have the test done. Start spraying with deleted Clorox 50/50.
Seller is responsible for known defects in the property. Questions;
Were these defects listed on the disclosure form?
Did you have the house inspected? If so, what did the report say?
 

mommyof4

Senior Member
The policy has already been written. They aren't refusing to write the policy, which insurance companies will do in ALL states, not just TX. They are simply going to cancel the existing policy due to underwriting.
Sorry, I wasn't very clear. That is what I meant.

There was a huge mess with some of the major insurance companies a few years ago here when they decided to cancel policies (even long standing policies) when someone filed a claim for mold. According to the them, they were going bankrupt....except for those pesky financial statements that came out showing they were all making record profits. Two of the biggest insurers are appealing judgements right now, while we all wait on refunds. It sucks.
 

FlyingRon

Senior Member
They can't cancel policies for underwriting. They payoff (if obligated) and either refuse to write a further (renewal) policy or add terms to it that limit their liability.
 

moburkes

Senior Member
Really? Tell that to all of us that had our policies canceled.
I think what he's trying to say is that a policy can't arbitrarily be cancelled mid term. However, a new policy can be cancelled during "free look" which is usually 59 days, and it can be set up to nonrenewal at the end of the term. Many states only allow nonrenewals every other year, and some other states have similar quirks, but all states allow free look. Or, at least the one's I am licensed to write in.
 

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