Remember the big mold “freak out” about 10 or 15 years ago? What happened to it?
Back around 2000, there were a number of high-profile mold cases that caused somewhat of a panic with the general public and in the real estate industry specifically. Realtors were especially worried about liability in their real estate transactions, as were prospective buyers and sellers.
There were several prominent cases that seem to have started the mold scare. One was the Ballard family who lived in, ironically, Dripping Springs, Texas. They had a plumbing leak that led to mold spreading throughout their house, causing myriad serious health issues to the entire family.
The case drew national attention when their story was featured on 20/20. The Ballards sued their insurance company and were initially awarded $32.1 million in damages.
Around the same time, Johnny Carson’s sidekick, Ed McMahon, started complaining to the media that he, too, was having problems with mold in his house, allegedly from a flood in his den that was never properly remediated. He eventually received a $7.1 million settlement from his insurance company.
The media created much of the drama by using terms such as “black mold” and “toxic mold.” To the general public, it appeared there was some new virulent organism that was now invading people’s homes and making their children sick and killing their pets — a 20th century bubonic plague, if you will.
The truth, of course, is that molds are naturally occurring organisms and are ubiquitous in the environment. Mold can cause allergies and more serious health problems, but getting rid of relatively small areas of mold contamination is usually not difficult, and prevention is very simple.
Responding to public health and safety concerns, California passed the Toxic Mold Protection Act of 2001. The law, among other things, requires certain disclosures to be made during real estate transactions. For example, when purchasing a residential property of one to four units, the seller is now required to disclose in the Transfer Disclosure Statement (TDS) if he or she is aware of any environmental hazards, including mold. Although the law requires the seller to disclosure knowledge of mold on the property, the seller is not required to perform any remediation. Once a mold issue has been disclosed, it is up to the buyer to request an inspection and any needed repairs. Who pays for the inspection and possible remediation is negotiable between the buyer and the seller.
It was the addition of this disclosure language into the real estate contract that led to so much concern on the part of buyers, sellers and agents.
Santa Barbara has a dry climate so most mold problems in the home will result from either a flood or a water leak. Mold is a living organism and requires two things to survive: food and water. Take away either, and mold can’t grow. The best way to stop mold growth is by controlling leaks and moisture. Common areas of leaks are under kitchen or bathroom sinks, behind toilets or at water heaters. Another potential problem area is air conditioning units. The indoor portion of an AC unit is often in the attic or the garage. If a condensate line clogs or leaks, it can cause extensive water damage and potential mold growth.
The Environmental Protection Agency has published several common-sense articles that have formed the basis for dealing with mold prevention, control and remediation. The information contained in these EPA documents remain the gold standard for dealing with mold in the home. In addition, the EPA has also released mold remediation guidelines for large buildings in its publication “Mold Remediation for Schools and Commercial Buildings.”
These guidelines boil down to some very simple principles for dealing with mold. According to the EPA, if the contaminated area is less than 10 square feet, the cleanup can usually be handled using a common sense approach. The first step is to find the source of moisture, usually a leak, and fix it. The second step is to clean it up. According to the EPA, “absorbent or porous materials, such as ceiling tiles and carpet, may have to be thrown away if they become moldy. Mold can grow on or fill in the empty spaces and crevices of porous materials, so the mold may be difficult or impossible to remove completely.” Get rid of anything that is wet, or let it dry out completely before covering it or painting over it. For more information, please see “A Brief Guide to Mold, Moisture, and Your Home.”
Although the great mold scare seems to have passed, mold can still become an issue in real estate transactions. Sellers can protect themselves by disclosing fully any knowledge they may have of potential environmental hazards including mold. Buyers can protect themselves by conducting a thorough inspection of the property, hiring qualified inspectors and asking specific questions about past leaks, water damage or mold growth.
— Donald Brownett is real estate associate-broker with Coldwell Banker Santa Barbara. He is a former general contractor and building inspector and specializes in property management, vacation rentals and estate management. He can be reached at 805.837.9064 or donbrownett@gmail.com.