While most homes have some degree of mold, much of it is harmless and/or remedial and need not deter a prospective buyer from the purchase.
That advice comes from two experts: John O’Brien, president of the Illinois Real Estate Lawyers Association (IRELA), and Larry Schwartz, BSME, president of Safestart, Inc.
“There is no evidence to suggest that mold is a real problem for the majority of Illinois homeowners,” says O’Brien.
Estimating that he will have completed more than 700 real estate closings this year alone, O’Brien says he has experienced only one incident where the buyer backed out of the purchase due to mold issues—even though a home inspection showed that the problem could have been easily resolved. Other IRELA members throughout Illinois report similar experiences about mold, he adds.
“The question a prospective buyer should ask is, how serious is the problem and how much will it cost to fix?” states Schwartz, an industrial hygienist and professional home inspector whose company is based in Buffalo Grove. Schwartz says he has discovered eight cases this year during the initial home inspection where a subsequent testing revealed an extensive mold problem. In each situation, the problem was small enough to be eliminated for under $2,000; six of the buyers went ahead with the purchase, according to Schwartz.
The fear of residential mold—in terms of the damage it can cause to a structure as well as the health concerns—persists. Most of the common knowledge about mold is insufficient and, to a large degree, inaccurate, say O’Brien and Schwartz who offer some of the more common mold myths.
It is a myth that all molds are toxic. Schwartz says there are more than 10,000 known molds. Some of them carry toxins which may—or may not—cause pathologic or allergic effects in people and animals. “While there have been isolated cases of severe health problems from mold, most cases have involved symptoms similar to a bad cold,” he says. “I have, however, seen the other kind of health damage which mold can do, and it should not be taken lightly.” The state of one’s health and immune system plays a large role in this.
It is a myth that all homes today should receive a special mold test. A home inspector will—or should—as a matter of routine conduct a visual test for mold. “A second, more expensive mold test is not necessary unless the home inspector and/or hygienist recommends it,” says O’Brien. “The treatment is the same regardless of the test results,” says Schwartz.
A homeowner getting ready to list his house should be upfront with his attorney about whether he or she has seen visible mold or detected an odor which is believed to be mold, O’Brien advises. “That way, the problem can be investigated and eliminated before the house is placed on the market,” says O’Brien.
It is a myth that older homes have greater mold problems than new construction. Mold is caused by moisture, and the purpose of ventilating a home is to get rid of excessive moisture. Homes built since 1980 are more inclined to have a mold problem because they are more tightly insulated and have less air exchange than older homes, according to Schwartz.
Another factor contributing to the problem is the methods used by a construction company to protect building materials during construction. “Improper storage methods are an open invitation to the amplified growth of mold which can lead to a truly ‘sick’ home where the cost to repair the damage can be upwards of $100,000,” Schwartz says.
It is a myth that correcting the moisture and ventilation issues will alone solve the problem. “Nothing short of eliminating the mold entirely will eliminate the problem,” says Schwartz.
O’Brien adds that “the seller has the financial obligation to fix the problem.” And that’s where the advice of a real estate attorney is especially beneficial.
“A lawyer’s duty is to represent his client to the best of his ability,” O’Brien says. “Part of this representation includes presenting the buyer with all the options available to any problems which arise during the transaction—even if those options lead a buyer to opt out of the deal.”
If, for example, the buyer discovers during the home inspection that more extensive mold testing is necessary, the attorney representing the seller should be informed for an extension to the deadline—usually five business days. “By law, a buyer who finds a defect in the house that he or she feels is unacceptable, can terminate the contract,” O’Brien says.
IRELA was formed in late 1997 to provide its lawyer/members with assistance in seeking mutual solutions to the increasingly complex issues that clients face in the typical real estate transaction and to help educate the public about the value of using an attorney when buying or selling a home. The organization has more than 1,000 members. IRELA is headquartered at 2340 S. Arlington Heights Rd., Suite 400, in Arlington Heights, IL 60005. For further information, call (847) 593-5750.
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