I've been wrestling with a particular issue and am not sure how to best handle it...
The scenario goes like this:
I wrote an offer on a house in a very popular neighborhood about two weeks ago. The house was gorgeous and I was happy for the Buyers when the offer we wrote "won" over two others that had been submitted. The offer was very strong (although not at full price), and contingent upon inspections to the sole satisfaction of the Buyer and the property appraising for at or above the contract price.
Honestly, I thought this was a done deal. The house was impeccably maintained and "looked" like it was in great shape.
Oops, notice I said "looked."
As the saying "looks can be deceiving" goes, this was a perfect definition.
The inspection revealed that the builder had failed to seal the block before putting on the decorative rock face and the sprinkler heads had been hitting the front of the house and seeping through the rock into the drywall...which had a 99% wet reading on the moisture meter.
Fortunately, the Seller was home and the listing agent was present, so the inspector asked for permission to remove the baseboard to see if there was mold.
Ouch, there was black mold that one could see with the naked eye.
Fortunately, the Seller authorized the inspector to take a swab test and sent it to the lab....And, you guessed it...the test came back as toxic black mold.
Needless to say, the Buyers I was working with withdrew from the contract last Tuesday. Problem solved, right?
Today, I noticed that another agent within my office now has Buyer under contract for the very same home. My dilemma is, do I mention the previous inspection to him so that he is aware that there was water intrusion and active mold found or do I not?
The home inspection was paid for by my Buyer, whom I have an Exclusive Buyers Agency Agreement with, but the mold test was paid for by the Seller. I only know that the test was positive because I got a call from the inspection firm whom the Buyer hired.
You'd think the Seller WOULD have updated their disclosures and the Buyer SHOULD have their own inspections, but what happens if they don't? Black toxic mold can be deadly and I'm very concerned for the health of everyone involved...
In addition, I am concerned that my Broker is carrying unnecessary risk by me not saying anything...but would I be at risk of being sued by the Seller for potentially jeopardizing their sale because I shared this information?
Help!! What these new Buyers might not know could kill them and I don't want that on my conscious!
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The listing agent needs to disclose this, not you. And since the listing agent was present at the inspection they cannot hide this problem. One thing you could do is have your buyer fax or e-mail the inspection report to the seller for their records and disclosure in order to rectify. If one inspection finds this, chances are pretty good another inspector will run into the same thing. Always a good idea to talk to your broker when something like this occurs. Let the broker pass on the info to others in your office.