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Mold and Ethics - Buyer Beware

By
Services for Real Estate Pros with RealEstateNewListings.com

When they had the Home Inspector in, he tested for mold and found the old house full of mold.  Its a gorgeous home locally that's listed for $835,900.  It's an older family estate home and the kids don't want it so they spent a substantial amount of money to bring the home up to date with new washrooms, new floors, windows and a new kitchen in order to sell for the maximum dollar. The mold is in the basement and bathrooms (I guess the contractor just didn't notice the mold huh?)

The place shows beautifully.  Here's the dilema.  The agent is a long time friend of the family.  She knows of the mold problem and knows it should be noted on the listing but refuses to do it.  So she has distanced herself from the problem by giving the listing to her assistant to do all of the showings.  She won't give the listing up because it's a big listing for her.  I don't know if her Broker knows the situation yet, but after talking to the Home Inspector that found the mold, he feels he should go talk to the Broker personally.

What aggravates the problem is that there aren't a lot of Home Inspectors here that test for mold.  So the agent is likely to have another Inspector come in that doesn't do the mold test once an offer is in.  The home will pass a regular inspection and I guess the agent feels that she'll be in the clear once the house gets a passing grade.

Sadly, this looks like an expensive case of BUYER BEWARE.

Gail Gladstone
Gladstone Group & Long Island Business Brokerage - Huntington, NY
Brokering Success

this is more a question of latent problems that the listing agent is aware of.  She is opening up her homeowner to liability and herself to losing her license.

I discovered a potential problem with mold in one of my houses and immediately removed it from the market until the homeowner could have it properly tested and treated.

 

Nov 03, 2007 01:40 PM
Dan Gobis
Re/Max Newport Realty Corp. - Racine, WI

In my lay opinion, it looks like a case of concealment and misrepresentation. I don't think the listing agent can distance herself by having an assistant do all the showings. To ignore a potential health hazard for the sake of getting a commission is disgusting.

Nov 03, 2007 01:43 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator
That is a major material fact that needs to be disclosed and addressed.  I would report that agent if I knew the situation to be true, and not rumor.
Nov 03, 2007 02:06 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
I think this broker is going to find herself in a lot of trouble.  It is best to disclose and deal with an issue than go this direction   Just my .02.  I think she should check with an attorney!  I don't think this is a buyer beware situation!
Nov 03, 2007 02:22 PM
Cris Burlew
Beach & Luxury Realty, Inc. - Saint Pete Beach, FL
Broker ~ St Pete Beach FL Real Estate

If the agent is concealing an issue that materially affects the value of the property, then the Home Inspector would have the right to inform the Broker. The broker needs to know what his/her agent is doing or in this case, not doing!

If the sellers were made aware of the mold within the property, then they now have to disclose or they open themselves up to possible litigation in the future. The agent should not only be advising her seller's to disclose this fact, but should insist on it. By not doing this, she is placing her license and her broker's license in jeopardy as well as facing possible litigation.

It is unbelievable what some agents will do just to make a buck! How dare she play with someone's health.

Nov 03, 2007 02:29 PM