Mold and Liability

[Restrain]

Got a note from my E&O carrier. They sent out a Claim Alert about mold and the potential liability. Because of the increasing claims due to mold and the fact that lawyers for homeowners will sue EVERYBODY, they recommended the following language in the report. They stated that this should be a clairfication of the scope of work and not an additional limiting condition as Fannie Mae will not accept a report with additional limiting conditions. Use this as you will.

"The appraiser is not a home or environmental inspector. The appraiser provides an opinion of value. The appraisal does not guarantee that the property is free of defects or environmental problems. The appraiser performs an inspection of visible and accessible areas only. Mold or other environmental problems may be present in areas the appraiser cannot see. A professional home inspection or environmental inspection is recommended."

 

[G-man]

I have seen this in one or two cases in the area where I work. Most recently, a home owner of a $300,000 - $400,000 home went through a nasty law suit with the builder, developer and building inspectors on her home which apparently has that nasty black mold. She claims to have suffered severe medical ailments because of it. The house was re-appraised by the county at $70,000 due to this condition. The homeowner eventually went into default on the mortgage and the home was reposessed by the bank. It was just sold at auction for around $200,000. The happy homeowner says he will clean/repair it, and may even live in it for a few years until the stigma goes away.
My question is, if you were a realtor, would you even touch this house? Even with proper disclosure, the home just would reak of future lawsuits. As an appraiser, I would have to take into account the past problems of this house, and disclose the beejeezus out of it. I personally wouldn't have touched it with a 100 foot pole, but to each his/her own. :roll:

 

[Karl]

From my Lawyer that does not chase Ambulances. He is indirectly involved with the Texas Mold Case & only does Real Estate Insurance related issues He stays on our side only. DO NOT use the word MOLD use contamination U use a specfic word U R insinuating (sp) that there is that particular item potentially there. What about Radon Water problem Yefas ETC ETC

 

[Karl]

PS not a home or environmental Try Home and environmental if there are concerns from any of the parties involved with this transaction. Note the word ANY meaning if none were done the (Guess) (Hint) major player in the transaction saw no reason to be concerned. Buyer Loaning institution. Did U not make the recommendation that this be done?

 

[Joe Birrell (NY)]

Ah, the new "buzz-word" for this decade. In the past it was radon, asbestos, pvc, cadmium, lead, etc. What about all the vinyl siding we are surrounding ourselves in (which is made from some of the most toxic chemicals ever produced) should we worry about this too ? I object to
all this hype about law suits. How many disclaimers do we need ?

 

[Karl]

This is Y I said contamination not a single item. Lawsuits!! & your senator would be? Just about the founder of lawsuits. & I also covered it by recommending Home and environmental inspection. IF there is ANY concern from ANY parties involved in this transaction. Trying to keep it simple. Don't let Mold close off the other potenial lawsuits. & YES lawsuits concern me as a guy in New Hampshire who helped out a family from one of those forgotten countries by GIVING them an apartment till they could get settled The baby CHEWED a WALL next to his crib & died. (Baby was sick prior to them moving in one of the concerns of getting them into an apartment quickly. (We all know about doing things quickly) The nice guy is now in jail because he DID NOT have the family sign the LEAD BASED PAINT statement on his 1908 Apartment building. Of course the statement was printed in English BUT!!