Previous Mold Repair not disclosed

[ronv]

Have a friend who recently purchased a home in Texas. House was 25-30 years old and in fair condition. She went through a real estate agent to locate and purchase the house and paid cash at closing. When trying to get homeowners insurance for the property after they moved in they were told by the insurance company that it previously had a $35,000 claim for mold damage and that they would not insure it. There was no mention of MOLD in the sellers disclosure document, only foundation repair.

What action can they take to get out of the property?

They have already sold their other house, so don't have anything to move back into if they got out of this one.

What is the Law in Texas regarding non-disclosure of MOLD related conditions?

Thanks

 

[faithandhope]

Unfortunately the mold scare is overplayed right now and insurance companies are taking advantage of it. Your friends need to contact the local city health department to find our what type and if it is harmful. Mold does not affect most people, but people with severe health problems might be prone to more problematic symptoms. The average mold is not harmful. Mold in houses has been around since houses were built. Most houses in warm southern climates has some type of mold, exterior or interior in one place or another and can be treated with household bleach and a good airing out. Mold and environmental hazards are not the scope of the home inspection either. First, contact the health dept and then contact the sellers AND their realtor (who should have advised on filling out the disclosure) and discuss the findings and options. The claim was mostly likely for water damage and usually an insurance company will not issue a policy on a house with prior extensive water damage due to the THREAT of mold. With a house that age, mold, plus lead and asbestos products and aluminum wiring, does not suprise me but some people buy old houses and expect them to be new. Old houses have special needs. Good luck to your friends.

 

[HomeGuru]

Have a friend who recently purchased a home in Texas. House was 25-30 years old and in fair condition. She went through a real estate agent to locate and purchase the house and paid cash at closing. When trying to get homeowners insurance for the property after they moved in they were told by the insurance company that it previously had a $35,000 claim for mold damage and that they would not insure it.
**A: here is where things went wrong. Since your friend paid cash there was no lender to require hazard insurance. The Realtor should have made sure that there was insurance coverage prior to closing. For obvious reasons, insurance placement should be prior to closing and not after.
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There was no mention of MOLD in the sellers disclosure document, only foundation repair.
**A: then the Buyer has a claim against the Seller.
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What action can they take to get out of the property?
**A: hire an attorney and sue for rescission.
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They have already sold their other house, so don't have anything to move back into if they got out of this one.

What is the Law in Texas regarding non-disclosure of MOLD related conditions?
**A: the non-disclosure of this material fact is covered under the law.