Chinese Drywall - Not Always Being Disclosed

Real Estate Agent with Coldwell Banker - Pinecrest (Miami) Broker 3058544

Between 2004 and 2007 some builders were using "Chinese Drywall" in the construction of new homes.  This drywall has been found to emit sulfide gases that can corrode electrical wiring, components of air-conditioning systems and other household appliances.  It is extremely expensive to correct and it is questionable if a home owner's policy will cover it.  Currently I am not aware of what this gas can or has been doing to a person's health living in one of these homes.  But if it's doing this to these systems I just can't imagine what it can do to someone's lungs.

If a homeowner knows that his property has Chinese Drywall he, and his real estate agent, must disclose it to any potential Buyer.  The reason I write this today is because it has come to my knowledge that not all homeowners and agents are disclosing this and unsuspecting Buyers are buying these homes.

Let's say that a house is put on the market and goes under contract.  The Buyer has an inspection done and the inspection reveals Chinese Drywall.  This condition is not acceptable to the Buyer and the Buyer withdraws his offer.  Now at this point, both the Seller and real estate agent know the house has Chinese Drywall.  The house gets put back on the market with no disclosure of this condition; hoping that the next Buyer doesn't have an inspection made; after all the house looks so nice, just painted, new air conditioning system, etc, and at a terrific price!

Now when this unsuspecting Buyer buys this house and some time down the road the condition becomes evident, it will be hard for him to prove that the Seller and the real estate agent had knowledge of the Chinese Drywall.

So how do I know all this; a home inspector told me!  He said to me that he'll inspect a house, find Chinese Drywall, the contract falls through and some time later he'll drive by the house and children are playing outside.  He said that that makes him feel so bad because he is almost sure that those Buyers didn't get the house inspected and that the Seller didn't disclose his knowledge of the Chinese Drywall.

What should we all take away from this; if you are buying a home built between 2004 and 2007 please get it inspected.  You might not smell or see anything suspicious but you still need an inspector to get up in the attic and inspect that drywall, look at the electrical system, get into the air conditioning system.  Folks, the $400.000 or so that the inspection will cost you can save you a ton of misery.


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Marie StoryMarie StoryMarie Story QR Code

Broker Associate, ABR,CIPS,GRI,TRC        

Celebrating My 23rd Year in Real Estate

Coldwell Banker 

12651 Pinecrest Parkway (US1)

Pinecrest (Miami), FL 33156


Pinecrest Florida   ~ My Website   ~   Pinecrest Homes For Sale


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John Mulkey - Waleska, GA
Housing Guru

Good advice, Marie.  The Chinese drywall situation has appeared at the worst possible time for builders, suppliers, contractors,and HOMEOWNERS.  It's both expensive and a nightmare to repair. 

Jun 26, 2009 08:08 AM #1
Judi Boad

Since 2001 enough Chinese drywall has been imported to build 60,000 homes! Aside from the negative effects it has on your home, it has the potential to make you really sick.

If you smell a hard boiled egg or amonia smell in your home, or suffer from ailments and symptoms including acne, asthma attacks, bloody nose breathing difficulty, coughing, dizziness, fatigue, gastrointestinal problems, headaches, hives, irritated eyes, nausea, nosebleeds, phlegm, rashes, runny nose, shortness of breath, sneezing, sinus problems, sore throat and  urinary tract infections, and feel that these symptoms could be from your home, you should have your sheet rock tested!!!

ALSO: Everyone should always have a home they are interested in purchasing inspected. You can't put a dollar amount on the future safety of your family.

Jun 26, 2009 08:56 AM #2
Kathryn Lawson-Fritsch
Re/Max Realty Partners - Cape Coral, FL
Your Friend and Realtor for Life


 This Chinese drywall situation has appeared effected us as Realtors and Homeowners. To not disclose is unlawful and should be reported asap!

Jun 27, 2009 02:52 AM #3
Marie Story
Coldwell Banker - Pinecrest (Miami) - Pinecrest, FL
Broker Associate, Pinecrest (Miami) Specialist

Kathryn, this week I spoke with the legal department of the Florida Association of Realtors.  I was told that there is nothing directly we can do as Realtors (unless we have been directly involved in a transaction) other than to continue to inform the public.

I am going to dedicate this week to reaching different news outlets to see if they can continue to get the word out and inform the public as to what's going on.

Jun 27, 2009 03:03 AM #4
Elcio Pacheco Jr.



My Name is Elcio Pacheco Jr. and I wanted to forward you my story about the new upcoming epidemic regarding the Chinese drywall issue in the state of Florida.


Sun-Sentinel wrote and published my story about my situation regarding "Sellers, Realtors & Home Inspectors conspiring to sale properties with tainted Chinese drywall and failing to disclose it.,0,5349972.story

I have filed lawsuits against the sellers, and will be filing against the Realtors, agents, and home inspectors soon. My family and young son are constantly being exposed to reactive sulfur gases resulting from this Chinese drywall problem and suffering from many symptoms which include; headaches, coughing, running noses, nausea and shortness of breath. 

I have been a victim of Fraud by the sellers of the property I purchased in 03/2011 in Doral, FL. The home was built 90% with Knauf Chinese Drywall from China and it was never disclosed to me, and we never received the Chinese Drywall Addendum. I even paid $15,000 above Market value for the property. As of 2009, the National Association of Realtors in Florida established a "Chinese Drywall Addendum" to be implemented on home sale of properties built after 2004 due to the problem. This form was never provided or included on our contract. Also, after looking through our buyer/seller contract I noticed on the sellers disclosure where it specifically states "Evironmental" Chinese drywall or corrosion etc they checked everything NO!


Here are the facts:


1.       Sellers (Previous owners) are State of Florida Licensed Realtor and acted as the selling agent and received a commission on this transaction.

2.       Sellers (Previous owners) lived in the home from 03/2008 – 03/2011.

3.       The property was listed with Keyes Realty for 8 months before it was removed and re-listed by the Sellers (Previous owners) realty company employer (Brokers, LLC).

4.       Neighbor states that (Previous owners / sellers) approached them inquiring if their home smelled like rotten eggs or a foul smell (a year ago) before I purchased the property. Both homes were built by same builder and are identical properties, built in the same time in 2007.

5.       Sellers (Previous owners) had air fresheners / candles in every room of the house when we went to look at the property. 

I have no doubt everyone involved in this transaction conspired with one another to not disclose the toxic Chinese drywall to get deal done. The home inspector was referred to me by my realtor. After taking a look at all the documents here is what I found:

1- My Realtor (Keyes) - 22 years of real estate experience in the Doral/Miami area, is also a Certified Distress Property Expert. I was told by a Keyes Sales Manager that As a licensed real estate brokerage regulated under Ch. 475 of the Florida Statutes, all of Keyes sales licensees are required to complete and maintain ongoing education as prescribed and regulated by the State of Florida. All of this coursework must be completed through a Florida license real estate school. One of the required training topics of this education, as required by the state approved syllabus, is defective/Chinese drywall. Keyes monitors ALL of their sales associates for compliance of these state regulated education requirements. Additionally, any disclosure changes or updates are communicated in a timely manner to all of Keyes associates at office meetings and via internal communications throughout the year-as necessary. 


2- Home inspector - He was referred to me by our Realtor from Keyes. His Company (Home Inspections Halley Inc) was established in 2005, clearly at the time when the Chinese drywall situation was going on (2004 - 2007). Moreover, he advertises on his website and adds that they are InterNACHI certified and inspects for Chinese drywall. InterNACHI front-ends many of its membership requirements and requires that its members take many other courses soon after joining.  In other words, all of their members must fulfill membership requirements before they can apply for membership. On his inspection report of my property, he took pictures of the AC & water heater, electrical wiring where it clearly shows the signs of Chinese drywall (air conditioning coils and other copper-bearing materials) copper should be color of copper and not black corroded.

Now, we are unable to live in the home because we are getting sick. I have a 3 year old son. We can’t sell it because its toxic and we have to move and rent out another home and can’t afford to pay mortgage on this toxic home and rent at the same time. We are in a no win situation. We will probably face foreclosure and our credit will be destroyed.  I wanted to reach out to your organization so see if you would like publish OUR story. If so, feel free to contact me. I want to warn others in Florida of this growing problem that will affect many people if we don’t put a story out there about whats going on.  

Thank you,

Elcio Pacheco Jr.

Jan 29, 2012 06:09 AM #7
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Marie Story

Broker Associate, Pinecrest (Miami) Specialist
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