Tucson Will Your Lender Fund if There is Mold in the House
September 24, 2007
Post Tags: mold_inspectors , mold_remediation , real_estate_purchase_contract , seller-property-disclosure-statement , spds
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Is that mold on the ceiling? Is that mold on the wall? Is that mold under the carpet by the tub?
Real Estate agents are not supposed to answer these questions. Why? because we are not home or mold inspectors. I’ve had to say on occasion, “It is black and it is a spot. We will need to get a mold inspector to find out what it is.”
There are some forms of mold that can be a health risk; others are a nuisance at best.
There is nothing in the Arizona Residential Resale Real Estate Purchase Contract that requires a seller to remove mold from a house if it is found. However, the removal of mold is often negotiated, but not required.
Being able to fog a spoon no longer qualifies you for a loan. This week we found out some lenders are tightening the requirement on the properties as well before they will fund.
One of those tightening standards. NO MOLD! If mold is found in a house it must be remediated and the home tested and declared mold free Before Close of Escrow. This means the mortgage company will not accept a credit to the buyer from the seller to fix mold found in a house after close of escrow.
If you are a seller and are aware of mold in the house you should get it remediated and final tested as mold free. Keep your tests and receipts for the remediation with complete documentation of what was found and the process for removing the mold and restoring the house. If you know there is or was mold in the house you are already required to disclose this in the Seller Property Disclosure Statement. If you provide documentation of remediation along with the SPDS you take away much of the stigma of having had mold in the house.
If you are in the process of buying a Tucson home and there is mold in the house you should check to see if there are similar requirements with your lender.
